Elizabeth Warren hits back at Trump, releases DNA test 'strongly' supporting Native American ancestry
By JACK SHAFER
The $779 billion figure is the largest deficit since the height of the Great Recession in 2012, when the budget shortfall amounted to $1.089 trillion. | Andrew Harnik/AP Photo
Treasury: Budget deficit swells under Trump to largest in 6 years
By SARAH FERRIS
10/15/2018 02:26 PM EDT
Updated 10/15/2018 05:42 PM EDT
President Donald Trump’s first full fiscal year in office has produced the nation’s largest budget shortfall in six years, according to Treasury Department data released Monday.
The U.S. deficit widened in fiscal 2018 to $779 billion, which is $113 billion more than the previous year, according to the Treasury’s widely anticipated yearly report.
Budget chief Mick Mulvaney, the White House’s best known deficit hawk, blamed the rising tide of red ink on Congress’ appetite for more spending this year — but he ignored the costly package of tax breaks that passed exclusively with Republican votes this year.
The Office of Management and Budget director argued that the supercharged economy would eventually bring in enough government revenue to make up the difference, without providing specific details.
“The president is very much aware of the realities presented by our national debt,” Mulvaney said, pointing fingers at Congress’ “continual unwillingness to restrain spending,” including lawmakers’ rejection of the administration's first major attempt at spending cuts this summer.
Sign up for our tax policy newsletter and stay informed — weekday mornings, in your inbox.
By signing up you agree to receive email newsletters or alerts from POLITICO. You can unsubscribe at any time.
“America’s booming economy will create increased government revenues — an important step toward long-term fiscal sustainability. But this fiscal picture is a blunt warning to Congress of the dire consequences of irresponsible and unnecessary spending,” Mulvaney said.
The last 12 months on Capitol Hill have been defined by deficit-financed spending and tax cuts, including the GOP’s signature tax bill and this spring’s $300 billion budget deal. Lawmakers also approved $130 billion in disaster aid without offsets.
White House advisers, including Mulvaney, are now hinting that the fiscal year that began Oct. 1 would be guided by a much stricter spending mentality.
Trump's chief economist, Kevin Hassett, said last week that the White House plans to take a “much more aggressive stance” on the budget this year, acknowledging that the deficit is “absolutely higher than anyone would like.”
Trump’s next budget request, likely to be released in February, is expected to feature far more fiscal austerity than the previous year’s proposal, which was largely focused on a buildup of the military.
By QUINT FORGEY
“President Trump prioritized making a significant investment in America’s military after years of reductions in military spending undermined our preparedness and national security,” Treasury Secretary Steven Mnuchin said in a statement.
Economists have noted that the mounting annual deficits — expected to exceed $1 trillion as soon as next year — are unusual in a time of robust economist growth.
This year, GDP growth surged 4.2 percent in the second quarter, marking its highest growth rate since mid-2014.
Still, the nation’s annual deficit is the largest since the height of the Great Recession in 2012. At that time, the budget shortfall was $1.089 trillion.
This article tagged under:
Missing out on the latest scoops? Sign up for POLITICO Playbook and get the latest news, every morning — in your inbox.
Jump to sidebar sectionSPONSORED CONTENT
- We've Ranked the Best African Safari Tours for Seniors! And the Winners Are...Faqeo
- Orlando: A Prime Destination for a STEM WorkforceOrlando Economic Partnership
- If You're Over 40 And Own A Computer, This Game Is A Must-Have!Vikings
- The Surprising Way Some Retirees Over 50 Are Earning IncomeThe Motley Fool
- 60 Nature Photos: Photos No Longer Bannedgroovyhistory.com
© 2018 POLITICO LLC