Oct 25, 2019 - Politics & Policy
U.S. annual budget deficit widens to $984 billion, hitting 7-year high
President Trump speaks during a "Keep America Great" rally in Dallas, Tex. on Oct. 17. Photo: Nicholas Kamm/AFP via Getty Images
The U.S. Treasury is reporting a 26% increase from the 2018 budget deficit to $984 billion for the fiscal year 2019, the highest it's been in 7 years, the AP reports.
Why it matters: Revenue dropped thanks to the 2017 tax cut and the federal budget that tacked on billions of dollars in spending for the military and other programs, serving as a contrast from President Trump's campaign promises to cut wasteful spending.
What to watch: Forecasts from both the White House and the Congressional Budget Office indicate the deficit will exceed $1 trillion in the current budget year, the AP notes.
- CBO estimates the deficit will remain above $1 trillion during the next 10 years.