US budget deficit running 11.8% higher this year

Business

US budget deficit running 11.8% higher this year

Wednesday, January 15, 2020

Print this page Email A Friend!


THE US budget deficit through the first three months of this budget year is up 11.8% from the same period a year ago, putting the country on track to record its first US$1 trillion deficit in eight years.

In its monthly budget report, the US Treasury Department said recently that the deficit from October through December totalled US$356.6 billion, up from US$318.9 billion for the same period last year.

Both government spending and revenues set records for the first three months of this budget year but spending rose at a faster clip than tax collections, pushing the deficit total up.

The Congressional Budget Office is projecting that the deficit for the current 2020 budget year will hit US$1 trillion and will remain over US$1 trillion for the next decade.

The country has not experienced US$1 trillion in annual deficits since the period from 2009 through 2012, following the 2008 financial crisis.

The actual deficit for the 2019 budget year, which ended September 30, was US$984.4 billion, up 26% from the 2018 imbalance, reflecting the impact of the US$1.5-trillion tax cut President Donald Trump pushed through Congress in 2017, and increased spending for military and domestic programmes that Trump accepted as part of a budget deal with Democrats.

The projections of trillion- dollar deficits are in contrast to Trump's campaign promise in 2016 that even with his proposed tax cuts he would be able to eliminate future deficits with cuts in spending and growth in revenues that would result from a stronger economy.


Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at http://bit.ly/epaperlive


ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT