In the first seven months of this fiscal year, the federal budget deficit grew 38% over the same period last year. The Treasury ran a $541 billion deficit from October through April, compared with $385 billion during the same period a year earlier. Part of the increase was attributable to a shift in the timing of certain federal benefit payments. If not for those shifts, the deficit would still have grown by 23%.
Federal outlays rose 8% to nearly $2.6 trillion while revenues increased 2% to $2.04 trillion. Although the $2.04 trillion collected is a record for the seven month period, the deficit still grew. Amazingly, the budget deficit, which the Congressional Budget Office projects to hit $896 billion this year, is rarely discussed in the financial news.
However, the actual deficit will be much larger as expenditures for natural disasters are not calculated in the deficit. Yet they cause the national debt to increase, which, of course, is still owed by taxpayers.
The graph below is the CBO’s projected deficits through 2029. These deficits, however, are predicated on there being no recession over the next ten years. So, these deficits undoubtedly will increase hugely.
The problem with the Mueller/Russian collusion/William Barr analysis/discussion/speculation is that what should be discussed in the media is not. That is, the dire state of our federal government’s financial affairs. Rarely is it discussed.
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