The Federal budget deficit is now $779 billion, the highest its been since 2012, when the deficit topped $1 trillion.
Reuters reports that, as the government closes out fiscal year 2017, a spending spree has driven it further into the red, though the deficit may not last for long.
The spending gap was driven primarily by a decision to pay down the national debt at a rate faster than expected. And although the government still experienced a record take from taxpayers, revenue grew at a slower rate this year because of the immediate effects of a Republican tax cut, passed late last year.
The government has also expanded military spending, though the Trump administration has promised to pull back spending in other areas.
Secretary of the Treasury Steve Mnuchin announced the shortfall Monday, but said that because of a combination of factors, the Treasury Department had predicted a budget deficit $70 billion higher.
For all the complaints about President Donald Trump’s trade policy, the United States actually did 35% better in that department this September over last, hauling in $35 billion in “excise, customs and other” receipts.
Experts have urged the Republican Congress to take care in reining back spending to help balance any lingering revenue loss from last year’s tax cuts. The GOP, however, anticipates that business growth will add to government coffers in an amount greater than what was lost.
Via DailyWire
