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US budget deficit climbs 23.1% over last year

The deficit widened to $ 747.1 billion from $ 607 billion last year, from October to June. Federal spending reached $ 3.36 billion during this period, while revenues reached $ 2.61 billion – both records.

The figures, released Thursday in a monthly Treasury report, darken the US budget while the federal government lacks credit.
Washington flirts with a debt crisis. Nobody has a plan to stop it

The US no longer has borrowing power since March, when the Congressionally-mandated debt ceiling was put in place, and independent analysts suggest that the government could run out of debt. money by September, unless Congress can agree to borrow more.

The increase in the deficit is due to a number of factors, including the $ 1.5 trillion tax cuts signed by President Donald Trump in 2017, as well as the significant expenses incurred.

The Trump administration predicts that the budget deficit will likely exceed $ 1 trillion for the full year, ending September 30th. This is up from $ 779 billion the year before.

This is much higher than the estimates of the non-parliamentary congressional budget office, which predicts that the year-end deficit will reach 896 billion dollars. It predicts that deficits will exceed $ 1 trillion from 2022.

Part of the increase in revenue for the period comes from a rate of 78% tariff increase, which amounted to $ 52 billion so far for the fiscal year. The Trump administration has imposed tariffs of $ 250 billion on Chinese products at tariffs. These economic penalties went from 10% to 25% in May, after the failure of trade negotiations.

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