In the United States, a $ 100.5 billion budget deficit was established in October, an increase of about 60 percent from the previous year. Likewise, said expense amounted to twice as fast as revenues.
The budget deficit of the United States has increased to $ 100 billion at the beginning of the fiscal year. The deficit increased by $ 63.2 billion in the same month last year. October marks the beginning of the fiscal year of the United States.
Notably, receipts totaled $ 252.7 billion last month, an increase of 7 percent compared to the previous year. Added to this, it is known that disbursements increased at least 18 percent to $ 353.2 billion.
Why is this?
It is important to mention that a growing deficit in the budget of the United States, induced by tax cuts, in addition to the increase in spending and the aging of the population. All of this is having an effect and is also encouraging the Treasury Department to increase its long-term debt issuance.
Similarly, it is assured that the dwindling support for the US government’s debt from the Federal Reserve, along with Trump’s tax cuts to increase the deficit, are affecting the debt burden that he inherited from Barack Obama.
It is necessary to mention that during the first full fiscal year of Trump that ended in September, the budget gap would have increased to $ 779 billion, the highest level since 2012.
Source: Sarah McGregor | Bloomberg
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