The U.S. budget deficit will surpass $1 trillion by 2020, two years sooner than previously estimated, as tax cuts and spending increases signed by President Donald Trump do little to boost long-term economic growth, according to the Congressional Budget Office.
Spending will exceed revenue by $804 billion in the fiscal year through September, jumping from a projected $563 billion shortfall forecast in June, the non-partisan arm of Congress said in a report Monday. In fiscal 2019, the deficit will reach $981 billion, compared with an earlier projection of $689 billion.
The nation’s budget gap was only set to surpass the trillion-dollar level in fiscal 2022 under CBO’s report last June.
Here is the link to the CBO report:
Another finding is that government spending is up 7% for the first 11 months of FY 2018 with receipts up by 1%.
CBO estimates that the federal government incurred a deficit of $211 billion in August 2018—$104 billion more than the shortfall in August 2017.
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