facebook linkedin twitter

US Budget Deficit Jumped By $140 Billion Through June

July 12, 2019 by Dan McCue
U.S. Treasury Department. (Photo by Dan McCue)

WASHINGTON – The U.S. budget deficit increased by $140 billion during the first nine months of the current fiscal year, rising to $747.1 billion, the Treasury Department said Thursday.

The department said the deficit for the current fiscal year through June is up 23.1% over the same period a year ago, with receipts rising by 2.7% while spending increased 6.6%.

In the meantime, the cost of the net interest the government owes grew by 16.4% during the first nine months of this fiscal year compared to the same period last year, far outpacing Defense spending (8.4%), Medicare (6.4%), Social Security (5.6%) and Transportation (4.6%).

For the October to June period, government receipts have totaled $2.61 trillion while spending totaled $3.36 trillion, both record amounts for the first nine months of the budget year.

The disparity between the two numbers reflects a variety of factors including a $1.5 trillion tax cut President Donald Trump pushed through Congress in late 2017 and billions of dollars in extra spending Congress approved in early 2018.

One big increase on the revenue side of the ledger was a 78% jump in customs duties, which total $52 billion so far this budget year.

Trump in May announced that he was doubling the punitive tariff he had imposed on $250 billion of Chinese goods from 10% to 25% after talks on a new trade agreement broke down.

As for the future, that’s anybody’s guess. The Trump administration has forecast the deficit for the full budget year, which ends on Sept. 30, will top $1 trillion, up from a deficit of $779 billion last year.

The Congressional Budget Office, meanwhile, is forecasting a deficit of $896 billion this year.

At the same time, however, the CBO has projected deficits will top $1 trillion beginning in 2022 and will remain above $1 trillion annually through 2029.

The outlook for next year is even fuzzier.

Congress and the Trump administration have yet to agree on a spending plan for the next fiscal year, which starts on October 1.

In addition, Congress must pass an increase to the debt ceiling, something the White House would like to see done before the August recess, or risk an unprecedented default in the $22 trillion national debt.

So far, though negotiators appear to be far from hashing out a final budget deal.

Thursday’s report led to renewed warnings from the Peter G. Peterson Foundation that it is long past time for the U.S. government to get its fiscal house in order and rein in the debt, the fastest growing federal budget category.

The foundation noted that in FY 2018, the federal government spent more on interest than it did on budget areas such as veterans’ benefits, transportation, and administration of justice; that the government is currently spending an average of over $1 billion per day to service the debt; and that over the course of the current year, the government will spend an approximate average of $3,000 per American family on net interest alone. 

Federal Budget

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

September 9, 2021
by Dan McCue
Murphy Takes Stand: She’ll Oppose ‘Rushed’ Reconciliation Package

WASHINGTON - Rep. Stephanie Murphy, D-Fla., said Thursday that she plans to vote against the spending and tax measures currently... Read More

WASHINGTON - Rep. Stephanie Murphy, D-Fla., said Thursday that she plans to vote against the spending and tax measures currently before the House Ways and Means Committee, chiding party leaders in the process for failing to give members adequate time to assess what's being included in... Read More

September 8, 2021
by Dan McCue
Yellen Warns US May Hit Debt Limit in October

WASHINGTON -- Treasury Secretary Janet Yellen is warning Congress that she will run out of maneuvering room to prevent the... Read More

WASHINGTON -- Treasury Secretary Janet Yellen is warning Congress that she will run out of maneuvering room to prevent the U.S. from broaching the government’s borrowing limit in October. In a letter to congressional leaders on Wednesday, Yellen said that she could not provide a specific... Read More

August 27, 2021
by Tom Ramstack
$3.5 Trillion Social Benefits Resolution Gets Down to Wire

WASHINGTON -- Congressional leaders signaled Wednesday that the historic $3.5 trillion social benefits package getting its last revisions before a... Read More

WASHINGTON -- Congressional leaders signaled Wednesday that the historic $3.5 trillion social benefits package getting its last revisions before a final vote is likely to include support for more affordable housing. Housing provisions are some of the most controversial portions of the bill with Republicans calling... Read More

August 24, 2021
by Tom Ramstack
House Democrats Break Impasse to Advance $3.5T Budget Plan

WASHINGTON -- House Democrats narrowly approved a $3.5 trillion budget framework Tuesday, hours after coming to agreement with moderates whose... Read More

WASHINGTON -- House Democrats narrowly approved a $3.5 trillion budget framework Tuesday, hours after coming to agreement with moderates whose desire for an immediate vote on the Senate-passed bipartisan infrastructure bill nearly scuttled President Joe Biden's sweeping domestic agenda. In a strictly party line vote, the... Read More

News From The Well
scroll top