U.S. Federal Budget Gap Widens 21% in First 10 Months of Fiscal Year--Update
August 10 2018 - 02:37PM
Dow Jones News
By Sharon Nunn
WASHINGTON -- The U.S. government's budget deficit widened 21%
in the first ten months of the fiscal year when compared with the
same period a year earlier -- as spending jumped.
The deficit, or the difference between the amount of money the
federal government spent and what it took in, totaled $683.97
billion in October through July, the Treasury Department said
Friday. The deficit was $566.02 billion during the same period a
year earlier.
Friday's release showed the federal budget deficit was $76.87
billion in July, 79% wider than July 2017's deficit. Government
revenue fell 3% last month compared with a year earlier, while
spending grew 10%.
The nonpartisan Congressional Budget Office said earlier this
week it expected revenues and outlays to climb 1% and 4%,
respectively.
Deficits are rising partly because business and individual tax
rates were cut last year, while government spending has been ramped
up. White House representatives argue reductions in tax rates spur
economic growth and raise tax revenue by boosting taxable household
and business income.
The rising deficit has boosted borrowing by the U.S. Treasury
Department, which recently announced it would increase auctions of
U.S. debt by an additional $30 billion over the next three months.
In all, the Treasury plans to borrow $329 billion from July through
September -- up $56 billion from the agency's April estimate -- in
addition to $440 billion in October through December. The figures
are 63% higher than what the Treasury borrowed during the same
six-month period last year.
The Treasury gets cash to fund the government in exchange for
selling the securities.
Write to Sharon Nunn at sharon.nunn@wsj.com
(END) Dow Jones Newswires
August 10, 2018 14:22 ET (18:22 GMT)
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