Global Economy

America's budget deficit jumps by 17% as spending surges


The Trump administration and congressional Republicans have pledged their commitment to fiscal discipline, despite the fact that they passed a tax law projected to dramatically expand budget deficits last year and then authorized a boost in spending. In a statement, Mulvaney claimed that “America’s booming economy will create increased government revenues,” a point the GOP has repeatedly argued in favor of its tax plan.

“But this fiscal picture is a blunt warning to Congress of the dire consequences of irresponsible and unnecessary spending,” he added. “… Going forward, President Trump and this Administration will continue to work with Congress to make the difficult choices needed to bring fiscal restraint, which, when matched with increasing revenue, will reduce our deficit.”

The Trump administration has proposed dramatic cuts to spending in several government agencies to reduce deficits. Even many Republicans have rejected the severity of proposed budget cuts.

The Treasury noted that receipts related to “excise, customs and other” jumped to $35 billion in September 2018, a 35 percent increase over the prior-year period. It is unclear how much of that revenue relates to Trump’s tariffs on imports from major trading partners.



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