Federal Deficit Now 77 Percent Higher Than a Year Ago

March 6, 2019 by Dan McCue

The Treasury Department reported Tuesday that the federal deficit for the first four months of the current fiscal year is 77 percent higher than the same period a year ago.

Since the fiscal year began on October 1, 2018, the deficit has ballooned to $310.3 billion — up from a deficit of $175.7 billion for the same time period a year ago.

The department said the higher deficit reflects the fact the government is collecting less money in taxes due to the sweeping, $1.5 billion tax cut pushed through Congress in 2017, while at the same time spending more on items like Social Security and defense.

According to the monthly budget report, which was delayed by the government shutdown, receipts fell by 2 percent to $1.1 trillion, while spending rose 9 percent to $1.4 trillion.

Tax revenue for October 2018 through January 2019 fell by $19 billion, Treasury said.

Meanwhile corporate tax payments over the first four months of the fiscal year dropped from $75.5 billion to $58.9 billion.

Tuesday’s report did show a substantial increase in customs duties, which nearly doubled to $25 billion, primarily due to White House tariffs on Chinese imports.

In a statement posted on Twitter, the Blue Dog Coalition of House Democrats said today’s report on the deficit shows Congress “can’t continue to kick the can down the road when it comes to addressing our nation’s exploding deficit and ever-growing debt. Now, it’s more important than ever that we put forward a budget that is fiscally responsible and upholds our shared values.”

In January, the coalition protected the bipartisan Pay-As-You-Go (PAYGO) rule, which requires Congress to pay for new priorities when it passes them in order to avoid handing down the bill to future generations.

“This was a step in the right direction to prevent the debt from getting worse,” the coalition’s tweet said. “Democrats have been able to produce landmark legislation that also abides by PAYGO. One example is the Affordable Care Act, which allowed 20 million Americans to gain access to health care—many for the first time. In summary, it is indeed possible to attain our shared goals, move our country forward, and be fiscally responsible. These characteristics are not mutually exclusive, and the Blue Dogs are ready to lead the way to demonstrate that.”

Last October, Donald Trump ended his first full fiscal year as president with a budget deficit of about $782 billion, the largest shortfall since 2012 when the country was first showing sustained signs of recovery from the 2008 global financial crisis.

The Congressional Budget Office, a non-partisan federal agency, forecast earlier this year that the deficit in the fiscal year through September 2019 could widen to $897 billion, up by $118 billion from a year earlier.

 

Budget

Mulling Presidential Run, Mark Sanford Says Government’s Precarious Finances Are Nation’s Biggest Threat Political News
Mulling Presidential Run, Mark Sanford Says Government’s Precarious Finances Are Nation’s Biggest Threat
August 16, 2019
by Dan McCue

WASHINGTON - Back home in South Carolina after a mid-week trip to New Hampshire, former Rep. Mark Sanford said Friday he was pleased with how things went in the Granite State and his decision on whether to mount a primary challenge against President Trump will be... Read More

Done Deal: Senate Passes Two-Year Budget Agreement Budget
Done Deal: Senate Passes Two-Year Budget Agreement
August 1, 2019
by Dan McCue

WASHINGTON - Despite pushback from conservative Republicans, the budget and debt ceiling deal struck by the White House and House Speaker Nancy Pelosi, D-Calif., easily passed the Senate Thursday afternoon. Even with fears that the vote in the Senate would be tight, the legislation passed 67-28,... Read More

House Democrats, White House Strike Deal on Budget and Debt Ceiling Federal Budget
House Democrats, White House Strike Deal on Budget and Debt Ceiling

WASHINGTON — White House officials and congressional leaders reached a deal Monday evening to lift the nation’s debt limit and boost federal spending by about $320 billion over caps set to take effect under a 2011 budget law. The agreement, first announced by President Donald Trump... Read More

Blue Dog Coalition Releases Blueprint for Fiscal Reform Federal Budget
Blue Dog Coalition Releases Blueprint for Fiscal Reform
July 19, 2019
by Dan McCue

WASHINGTON—The Blue Dog Coalition on Thursday released a comprehensive plan it believes will help restore fiscal discipline in Congress.  The Blue Dog Blueprint for Fiscal Reform was developed under the leadership of Representatives Ed Case, D-Hawaii, and Ben McAdams, D-Utah, co-chairs of the Blue Dog Task... Read More

Alaska Legislature Convenes For Special Session Amid Budget Fallout State News
Alaska Legislature Convenes For Special Session Amid Budget Fallout
July 19, 2019
by Elin Johnson

Controversy continues to roil Alaska, a week after the state legislature failed to overturn $444 million in budget cuts by Governor Mike Dunleavy. The latest dispute, resolved only Wednesday, concerned the location for a special session of the legislature that Dunleavy initially called solely to determine... Read More

Pelosi: Extra Veterans Health Care Funds Needed in Debt Deal Veterans
Pelosi: Extra Veterans Health Care Funds Needed in Debt Deal

WASHINGTON — House Speaker Nancy Pelosi wrote to Treasury Secretary Steven Mnuchin on Saturday pressing for added funds to help veterans see private doctors as part of any deal to raise the debt ceiling and tight appropriations caps. Pelosi’s letter opens a new front in the... Read More

Straight From The Well
scroll top