Treasury: Budget deficit swells under Trump to largest in six years

President Donald Trump’s first full fiscal year in office has produced the nation’s largest budget shortfall in six years, according to Treasury Department data released today. The U.S. deficit widened in fiscal 2018 to $779 billion, which is $113 billion more than the previous year, according to the Treasury’s widely anticipated yearly report. That figure is in line with the CBO’s estimated shortfall of $793 billion. In a statement, White House budget chief Mick Mulvaney acknowledged the rising tide of red ink — the result of Congress’ appetite for more spending and tax cuts this year. But Mulvaney argued the shortfall would ultimately be erased by the more robust economy, coupled with future spending cuts. “America’s booming economy will create increased government revenues — an important step toward long-term fiscal sustainability,” Mulvaney wrote, adding that the data is a “blunt warning to Congress of the dire consequences of irresponsible and unnecessary spending.” The $779 billion figure is the largest deficit since the height of the Great Recession in 2012, when the budget shortfall amounted to $1.089 trillion. In another statement, Treasury Secretary Steven Mnuchin attributed part of the spending increase to a short-term boost for the military. “President Trump prioritized making a significant investment in America’s military after years of reductions in military spending undermined our preparedness and national security,” Mnuchin wrote. But he promised strong economic growth and spending cutbacks “going forward.” source: https://ift.tt/2Ab6UM4 #Headlines by: sferris@politico.com (Sarah Ferris) Original Post: https://ift.tt/2Ab6UM4 https://ift.tt/2yhDU4c
source: https://droolindognews.blogspot.com/2018/10/treasury-budget-deficit-swells-under.html