The federal government’s budget deficit was over $1 trillion for the first 11 months of the 2019 fiscal year, the Congressional Budget Office estimated in a report released on Monday.
The deficit is $168 billion more than the deficit that occurred during the same period last year.
Revenues went up by $102 billion in comparison to the previous fiscal year, but the amount the federal government spent went up much more, $271 billion higher during the same period.
The CBO, Congress’ official nonpartisan budget and economic analysis agency, projects that the overall 2019 budget deficit will eventually fall below $1 trillion to $960 billion because the tax payments due in September will likely create a surplus in that month. Nevertheless, it’s on track to be the biggest shortfall since 2012, when the economy was still suffering in the wake of the financial crisis.
The federal government’s revenue went up by 3% in the first 11 months of the 2019 fiscal year. The increase was attributable to more money coming in from individual income and payroll taxes, corporate taxes, and other sources such as customs duties revenue from President Trump’s tariffs on imported goods from China.
In contrast, the total amount spent by the federal government went up by 7% in the first 11 months of the 2019 fiscal year. The higher spending was mostly due to increases in spending on mandatory programs such as Social Security, Medicare, and Medicaid.
Looking at the spending of agencies within the federal government, the agencies with the highest increases in spending were the Department of Defense, the Department of Education, and the Department of Veteran Affairs. The agencies with the largest decreases in spending were the Department of Housing and Urban Development and the Department of Homeland Security.
