[ad_1]
Getty Images
Numbers: The United States recorded a deficit of $ 779 billion during the fiscal year ended September 30, which represents an increase of $ 113 billion, while spending has increased while revenues have remained almost stable, announced Monday the Treasury Department.
Spending increased $ 127 billion, or 3.2%, while government revenue rose 0.4%, or $ 14 billion.
In relation to GDP, the deficit reached 3.9%, up 0.4 percentage points.
In September alone, the United States generated a surplus of $ 119.1 billion.
What happened: Interest on the public debt jumped $ 65 billion, or 14%, partly because the Treasury had to increase the principal of its securities protected against inflation. Rising interest rates and higher debt also played a role.
Social security spending rose $ 39 billion, or 4 per cent, as the US population grew, while defense spending rose by $ 32 billion, or 6 per cent, as Congress allowed more spending .
Education spending registered the largest decline, down 43% or $ 48 billion, almost entirely due to changes in the estimated subsidy costs of loans and loan guarantees. Fannie Mae, a buyer of government-controlled mortgages, also reduced her contribution to profits.
FNMA, -0.38%
and Freddie Mac
HSFC -3.15%
.
On the revenue side, corporate income taxes fell by 22%, or $ 76 billion, with businesses benefiting from a lower tax rate and the ability to immediately deduct the total value of equipment purchases. both products derived from the law on the reduction of tax and employment. The personal income tax increased slightly by 1%, or $ 23 billion, as the increase in employment and wages were offset by lower payroll deductions, the Treasury having issued a modified deduction chart.
What they say: "The United States' thriving economy will lead to increased government revenue – an important step toward long-term fiscal sustainability. But this fiscal situation is a brutal warning to Congress of the dire consequences of irresponsible and unnecessary spending, "said CAMO Director Mick Mulvaney in a statement.
"The burden of federal debt has doubled over the last decade to be close to 80% of GDP and projections suggest that it will reach 100% by 2030, the aging of the population resulting in increased spending on pensions and public health care. Steps can be taken to reduce the budget deficit in the long run, but the political opposition will make it extremely difficult to reform admission rights outside of a crisis, "said economist Paul Ashworth. in chief at Capital Economics, in a note published in advance. final figures.
Source link
