United States budget deficit tops $1 trillion

Washington (CNN Business) The US budget deficit widened to $1.067 trillion for the first 11 months of the fiscal year, an increase of 19% over this time last year, the Treasury Department reported Thursday.

The White House's Office of Management and Budget has predicted that the deficit will exceed $1 trillion for the entire fiscal year, which ends on September 30.

The deficit for the fiscal year to date was $1.067 trillion, compared with $898 billion in the comparable period the year earlier.

Longer term, the CBO in August forecast that the annual deficit would again top $1 trillion in 2020 and remain above that threshold over the next decade.

The US deficit in the 11 months through August topped $1 trillion, 19 percent higher than the same period of the previous year, as spending increased by more than double the rate of income, according to the monthly report.

The government has only recorded trillion-dollar-plus deficits in one other period, during the four years 2009 through 2012 when spending went up to deal with a deep recession and the worst financial crisis since the 1930s.

When adjusted for calendar effects, the deficit for August was $141 billion compared with an adjusted deficit of $146 billion in August 2018.

In addition, Social Security and Medicare payments are surging as millions of baby boomers retire.

During his presidential campaign, President Donald Trump promised economic growth that would easily take care of the tax cuts and new spending he planned.

For this year, revenues are up 3.4%, but spending is up by 7 percent, almost double the increase in revenues. A year ago closed with a $779 billion deficit.

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