US budget deficit jumps 23% through June

FILE — This June 12, 2019, file photo shows the U.S. Capitol dome on Capitol Hill in Washington. On Thursday, July 11, the Treasury Department releases federal budget data for June.

WASHINGTON — The U.S. budget deficit increased by $140 billion during the first nine months of this budget year to $747.1 billion as government revenues and spending both hit records.

The Treasury Department reported Thursday that the deficit for the current fiscal year through June is up 23.1% over the same period a year ago with receipts rising by 2.7% while spending increased 6.6%.

The Trump administration is forecasting that the deficit for the full budget year, which ends on Sept. 30, will top $1 trillion, up from a deficit of $779 billion last year.

The Congressional Budget Office is not quite so pessimistic for this year, forecasting a deficit of $896 billion this year. But the CBO projects that deficits will top $1 trillion beginning in 2022 and will remain above $1 trillion annually through 2029.

The surge in deficits reflects a variety of factors including a $1.5 trillion tax cut President Donald Trump pushed through Congress in late 2017 and billions of dollars in extra spending Congress approved in early 2018.

Congress and the Trump administration have been unable to agree on a new budget, raising the prospects of another possible government shutdown when the new budget year starts on Oct. 1. In addition, Congress must pass an increase to the debt ceiling or risk an unprecedented default in the $22 trillion national debt.