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US budget deficit overcame the mark of one trillion dollars

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US budget deficit overcame the mark of one trillion dollars
September 16
13:00 2019

According to the US Treasury, the country’s budget deficit for August has totaled $ 200.3 billion. This is 6% less than for the same period last year. Then it was equal to 214.15 billion US dollars.

Budget revenues have grown 4% – to a value of 228 billion US dollars. Last year, this figure was equal to 219.1 billion US dollars. At the same time, expenses have decreased by about one percent. This year, the budget expenditures have amounted to 428.3 billion US dollars. Last year, the same indicator was equal to 433.2 billion US dollars.

According to the results of 11 months of the 2019 fiscal year (which ends in late September), the negative budget balance has increased almost 19% to $ 1.07 trillion. This means that the budget deficit has amounted to 4.4% of the national GDP. For the same period of the last financial year, this indicator amounted to 898 billion US dollars.

This year, the number of budget revenues has increased significantly. The growth has amounted to 3.4%, in absolute figures – 3.08 trillion US dollars. It should also be noted that customs duties have grown 75%.

Expenses have increased too. In absolute terms they have grown 7% – up to 4.15 trillion US dollars. Public debt servicing, defense and Medicare (state health insurance program) have become the principal items of expenditure.

Congress predicts that the negative balance for the fiscal year will be below one trillion, since September is usually the month when revenues exceed expenses. The Budget Office expects an annual rate of around $ 960 billion.

Last year, the US budget deficit grew 17%. It turned out to be equal to 779 billion US dollars or almost 4% of GDP. This is the maximum value since 2012.

The last time the US budget surplus was recorded in 2001. The largest deficit was in 2009. Then it amounted to $ 1.4 trillion, i.e. about 10% of GDP.

 

The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group

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