Federal deficit balloons 77 percent in first third of the fiscal year
The federal deficit for fiscal year 2019 ballooned 77 percent in the first four months, compared to the previous year.
The federal deficit ran $310 billion in the first four months of this budgetary year, the Treasury Department said Tuesday. Tax revenue fell slightly, by $19 billion or close to 2 percent, while federal spending grew by close to 9 percent from the same period the year before.
Spending rose despite a partial government shutdown that took place during two of those months. Shutdowns typically delay payments, though the cost to stop and then restart certain government activities sometimes costs more than continuing those operations.
Federal deficits have come under increased scrutiny following criticism from Democrats of the 2017 tax law. The Trump administration asserts that the tax cuts will pay for themselves by added economic activity and taxable income, while Democrats argue the tax cuts will expand the federal deficit and increase the national debt as a result.
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