Jun 12, 2019 - Politics & Policy

U.S. budget deficit up nearly 40% from last year

Photo: Mark Wilson/Getty Images

The Treasury Department says the U.S. budget deficit has increased to $738.6 billion in the first 8 months of the fiscal year — up $206 billion from the same time last year, according to a report from the Congressional Budget Office.

Why it matters: The deficit has continued to grow under President Trump as a result of Republican tax cuts and increased government spending, reports Bloomberg. Even increased customs revenue stemming from tariffs — which Trump falsely insists is being paid for by China — has failed to bridge the widening gap. The deficit is expected to reach $897 billion by the end of the year.

Go deeper... Chart: How the U.S. budget deficit has fluctuated since the 1980s

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