The U.S. government closed the 2018 fiscal year with a $779 billion deficit.
A $779 billion deficit was registered in the closing of the U.S. government’s 2018 fiscal year.
According to data released on Monday by the Treasury Department, Republican-led tax cuts pinched revenues and expenses rose on a growing national debt, causing the wide debt the U.S. government faces in the closing of its fiscal year.
New government spending also expanded the federal deficit for the 12 months through September, the first full annual budget on the watch of U.S. President Donald Trump. It was the largest deficit since 2012.
The data also showed a $119 billion budget surplus in September, which was larger than expected and a record for the month.
Trump and his fellow Republicans have touted the tax cuts as a boost to growth and jobs.
“America’s booming economy will create increased government revenues – an important step toward long-term fiscal sustainability,” Office of Management and Budget Director Mick Mulvaney said in a statement accompanying the data.
According to Reuters, The Bipartisan Policy Center called the report “a wake up call” for policymakers to turn things around. “The fact that our government is closing in on trillion-dollar deficits in the midst of an economic expansion should be a serious issue for voters and candidates,” William Hoagland, its senior vice president, said of next month’s U.S. congressional elections.