The US budget deficit increased by $140 billion during the first nine months of this budget year to $747.1 billion as government revenues and spending both hit record highs, the Treasury Department said Thursday July 11th.
The deficit for the current fiscal year to June is up 23.1% over the same period a year ago with receipts rising by 2.7% while spending increased by 6.6%, the Treasury Department reported, according to AP.
The deficit for the full budget year, which ends on September 30th, will exceed $1 trillion, up from a deficit of $779 billion last year, the Trump administration forecasts.
The Congressional Budget Office (CBO) is not quite so pessimistic for this year, forecasting a deficit of $896 billion for the period. But the CBO projects that deficits will reach $1 trillion beginning in 2022 and will remain above $1 trillion annually until 2029.
The surge in deficits reflects a variety of factors including a $1.5 trillion tax cut President Trump pushed through Congress in late 2017 and billions of dollars
in extra spending Congress approved in early 2018.