The new fiscal year got off to a rocky start in October, as the Treasury Department reported Tuesday that Uncle Sam ran a budget deficit of $100 billion last month, up 60 percent from a year earlier, and the largest deficit in October since 2015.
Compared to the same month a year ago, spending was up by over $50 billion, while revenues increased by $17 billion, again demonstrating stronger economic growth – but that growth has not brought the federal deficit under control as promised repeatedly by GOP leaders in Congress and the White House.
The feds brought in $252.7 billion in revenues, compared to a spending level of $353.2 billion in October – giving taxpayers $100.5 billion more in red ink, in the very first month of Fiscal Year 2019.
The Treasury Department said the government ran a $100 billion deficit last month, as spending increases outpaced revenue growth https://t.co/RNgM17kK2C
The budget estimates from the White House already envision a deficit in 2019 which could go over $1 trillion, though the deficit for 2018 settled at less than original estimates, totaling $779 billion.
That yearly deficit was the largest since 2012.
“October revenues are up 7% compared to last year, but over half of that increase is due to tariffs & excise taxes,” wrote budget expert Tyler Evilsizer, who points out that collections of individual income tax revenue increased less than one percent in October.
While Republicans in Congress had routinely pledged to enact a balanced budget, those promises haven’t come close to being fulfilled under the Trump Administration.
Trump kicks off FY19 with the deficit of $100.5bn in Oct bringing the 12 month tally to $816bn (20% wider vs. a year ago). Where are we heading? According to the CBO, we should expect the deficit near the $1tln mark this year. pic.twitter.com/I0F7bcmLGE