The biggest in 7 years: US budget deficit reaches almost $ 1 trillion

The US government said the budget deficit was just under $ 1 trillion for the last fiscal year that has recently ended (the fiscal year in the US lasts from October 1 to September 30). Writes about it Daily Mail.

Фото: Depositphotos

The deficit of $ 984 billion in the 2019 fiscal year was more than $ 200 billion more than last year, despite very low unemployment and continued economic growth. This figure is also slightly higher than the forecast of the Congressional Budget Office (CBO) in August at $ 960 billion.

CBO noted that the deficit is growing faster than the size of the economy for four consecutive years, ending 2019 year at 4,7% of gross domestic product. Many leading economists have long held the position that the country's deficit and public debt of $ 22 trillion are unsustainable.

Others say that the deficit is manageable and note that low interest rates remain despite a steadily growing debt. Democrats noted a sharp increase in the deficit since the adoption of the plan to reduce taxes by US President Donald Trump in 2017. The head of the White House promised not to touch such popular retirement benefits as Social Security and Medicare.

On the subject: How the dollar has withstood the gigantic public debt and US budget deficit for decades

Although the deficit has not yet reached the symbolic mark in 1 of the trillion dollars that was registered during President Barack Obama’s first term, he can jump if the economy falls into recession. The Treasury Department will release final deficit indicators in mid-October. CBO estimates are based on daily treasury reports.

During the campaign in 2016, Trump repeatedly promised to begin to reduce the deficit when he became president, at some point he proposed to completely eliminate it in eight years.

Trump's tax reform in the 2017 year, limiting the fees that the government can collect from taxpayers, combined with higher costs than planned for the 2018 year, all this only exacerbated the problems.

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