US on track for first $1 trillion budget deficit since 2012

Friday, February 7, 2020, Vol. 44, No. 6

WASHINGTON (AP) — The U.S. budget deficit through the first four months of this budget year is up 19% from the same period a year ago, putting the country on track to record its first $1 trillion deficit since 2012.

The Treasury Department said Wednesday in its monthly budget report that the deficit from October through January was $389.2 billion, up $78.9 billion from the same period last year.

The deficit reflected government spending that has grown 10.3% this budget year while revenues were up only 6.1%. For January, the deficit totaled $32.6 billion, compared to a surplus a year ago of $8.68 billion.

President Donald Trump sent Congress a new budget blueprint on Monday that projects the deficit will top $1 trillion this year but then will decline over the next decade.

The Congressional Budget Office, however, is projecting that the deficit will top $1 trillion this year and remain above $1 trillion over the next decade.