Three-digit billion amount: US accounts for highest deficit since 2012

              Friday, October 25, 2019

Armaments are expensive. The US is currently feeling this.
(Photo: picture alliance / dpa)

              The bill does not work out: Although the US is taking over more in the financial year that has just ended, the increased expenditures for defense, for example, cut a huge hole in the treasury. The shortfall is as big as it has been for seven years.
              The US government has closed the past fiscal year 2018/19 with the highest budget deficit in seven years. Despite rising tax revenues as the economy grew and the labor market booming, the shortfall in the twelve months to the end of September increased to $ 984 billion, from $ 779 billion a year earlier, according to the Treasury Department in Washington. The deficit ratio for gross domestic product rose to 4.6 from 3.8 percent. By four percent higher revenue could not make up for the 8.2 percent climbed expenditure. Backgrounds include the tax reform of President Donald Trump and his Republicans, which resulted in lower corporate tax revenues and higher military spending. The Ministry of Finance said spending on welfare, defense and debt had increased. The government debt now amounted to 16.8 trillion US dollars, it said. It is the second full fiscal year under Trump who has taken office in times of booming economy. The deficit reached a peak of $ 1.4 trillion in 2009, when the government under Trump's Democratic predecessor Barack Obama bailed the banking system in the global financial crisis saved from collapse and supported the economy. Obama then reduced the deficit to $ 585 billion by the end of his second term in 2016. He was then, however, sharply criticized by the Republicans, who had demanded a greater reduction.

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