Budget deficit breaks the $ 1 trillion mark, the highest level in seven years



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The US government's red ink for the 2019 fiscal year surpassed the trillion dollar mark in August, the first time this level has been overshadowed in seven years, the Treasury Department said Thursday.

The total deficit reached nearly $ 1.07 trillion, thanks to a difference of more than $ 214.1 billion in revenues and expenses in August. The government experienced last year a large budget deficit in 2012, while the gap was nearly $ 1.1 trillion.

During his presidential campaign, President Donald Trump promised economic growth that would easily solve the tax cuts and new spending that he foresaw. Its 2017 corporate and personal tax cut contributed to the deficit reduction of $ 584.6 billion in 2016.

Revenues have risen slightly in 2019 to reach about $ 280 billion a month, but also spending, which averages $ 377 billion a month, about $ 25 billion more than in 2018. last year the deficit was $ 779 billion.

While the deficit has widened, the national debt has reached $ 22.5 trillion, up 13% since taking office Trump.

However, the deficit as a percentage of GDP has been drastically reduced in recent years, rising from a peak of 9.8% in 2009 to around 5% now.

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