facebook linkedin twitter

Federal Deficit Reached $984 Billion in FY2019, Highest in 7 years, CBO estimates

October 10, 2019 by Dan McCue
The U.S. Treasury Department. (Photo by Dan McCue)

WASHINGTON – The federal deficit reached $984 billion in fiscal year 2019, with spending far out pacing revenue, according to an estimate released by the nonpartisan Congressional Budget Office this week.

This would be an increase of $205 billion over the 2018 deficit and the fourth year in a row when the deficit rose as a share of the economy.

The CBO’s findings show that government spending increased by around 8 percent, while revenue rose by only 4 percent in the fiscal year 2019.

The increase in the deficit to an amount equal to 4.7 percent of GDP, was the highest in seven years.

The increase in revenue was attributed to multiple factors, including rising individual and corporate income taxes as well as customs duties imposed on imports from China.

The increased spending, meanwhile, largely went to mandatory programs like Social Security, Medicare, and Medicaid. Other increases went to the Department of Defense, the Department of Education, and the Department of Veterans Affairs, the CBO said.

Marc Goldwein of the Committee for a Responsible Federal Budget said on Twitter “The near-term deficit is really growing because Congress and the president continue passing legislation without paying for it.”

Interest on the debt — $423 billion — increased by 14 percent and was the fastest growing major category of expense.

The CBO’s estimate is based on data released from the Daily Treasury Statements, which are issued by the Department of the Treasury. The department will report the actual deficit for later this month.

Federal Budget

Biden: Budget Talks Hit 'Stalemate,' $3.5T May Take a While

WASHINGTON (AP) — President Joe Biden said Friday that talks over his $3.5 trillion rebuilding plan have hit a "stalemate"... Read More

WASHINGTON (AP) — President Joe Biden said Friday that talks over his $3.5 trillion rebuilding plan have hit a "stalemate" in Congress as he made the case for his expansive effort to recast the nation's tax and spending programs and make what he sees as sweeping,... Read More

Democrats See Tax 'Framework' to Pay for Huge $3.5T Package

WASHINGTON (AP) — The White House and congressional Democrats have agreed to a framework of options to pay for their... Read More

WASHINGTON (AP) — The White House and congressional Democrats have agreed to a framework of options to pay for their huge, emerging social and environment bill, top Democrats said Thursday. Now they face the daunting task of narrowing the menu to tax possibilities they can pass... Read More

September 22, 2021
by Dan McCue
House Passes Spending Bill and Debt Limit Increase

WASHINGTON - House Democrats on Tuesday Night approved legislation to keep the government funded through early December and lift the... Read More

WASHINGTON - House Democrats on Tuesday Night approved legislation to keep the government funded through early December and lift the debt ceiling -- the limit on federal borrowing -- through the end of 2022. The bill passed, 220 to 211, with not a single Republican voting... Read More

September 20, 2021
by Dan McCue
Democrats Say Debt Limit Increase Will Be Part of Short-Term Spending Bill

WASHINGTON -- House Democrats will pair a continuing resolution to keep the government open through December with an increase in... Read More

WASHINGTON -- House Democrats will pair a continuing resolution to keep the government open through December with an increase in the debt limit. The package is expected to be put up for a vote by next week, House Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader... Read More

White House Warns That Debt Limit Showdown Could Hurt States

The White House is warning state and local governments about severe cuts to disaster relief, Medicaid, infrastructure grants. school money... Read More

The White House is warning state and local governments about severe cuts to disaster relief, Medicaid, infrastructure grants. school money and other programs if Congress fails to raise the U.S. debt limit. A fact sheet for state and local officials that was obtained by The Associated... Read More

September 13, 2021
by Reece Nations
U.S. Could Hit Debt Limit by Next Month

WASHINGTON -- The Bipartisan Policy Center, a D.C.-based think tank, released an analysis on Friday projecting that the United States’... Read More

WASHINGTON -- The Bipartisan Policy Center, a D.C.-based think tank, released an analysis on Friday projecting that the United States’ debt limit “X Date” will likely arrive between mid-October and mid-November of this year. The so-called x date represents the day on which the United States... Read More

News From The Well
scroll top