Federal Budget Deficit Swelled to Nearly $1 Trillion in 2019
The United States federal budget deficit jumped 26 percent in fiscal 2019 to $984 billon, reaching the highest level in seven years as the government was forced to borrow more money to pay for President Trump’s spending and tax cut policies.
The deficit is expected to top $1 trillion in 2020 as a slowing global economy and festering trade tensions weigh on economic growth in the United States. Mr. Trump, who promised to eliminate deficits by cutting spending and growing the economy, has allowed them to swell under his watch by enacting sweeping tax cuts and boosting government spending.
Corporate tax revenues for the government’s 2018 and 2019 fiscal years have come in well below what the Congressional Budget Office forecast they would be before the 2017 tax cuts passed.
Treasury Secretary Steven Mnuchin said in a statement on Friday that the president’s economic agenda was working, pointing to the historically low jobless rate, and called on lawmakers to help the administration cut spending.
“In order to truly put America on a sustainable financial path, we must enact proposals — like the President’s 2020 budget plan — to cut wasteful and irresponsible spending,” Mr. Mnuchin said.
The deficit, which is the gap between what the government takes in through taxes and other sources of revenue and what it spends, now sits at 4.6 percent of gross domestic product.
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