#BUSINESS NEWS JANUARY 29, 2018 / 4:48 PM / UPDATED 2 HOURS AGO

U.S. budget deficit to top $1-trillion in 2019: budget experts

Susan Cornwell
3 MIN READ

WASHINGTON (Reuters) - As the U.S. Congress limps toward the likely passage next week of another stopgap spending bill to avert a government shutdown, a Washington think tank has estimated the federal budget deficit is on track to blow through $1 trillion in 2019.

If it does, it would be the first time since 2012 the U.S. economy will have to support a deficit so large, highlighting a basic shift for the Republican Party, which has traditionally prided itself on fiscal conservatism.

The Committee for a Responsible Federal Budget, a Washington fiscal watchdog, said the red ink may rise in fiscal 2019 to $1.12 trillion. If current policies continue, it said, the deficit could top a record-setting $2 trillion by 2027.

The committee had previously projected the deficit - the difference between the government spending and its annual tax revenue - would reach $983 billion in fiscal 2019. That estimate came after Congress in December passed a tax overhaul that will add about $1.5 trillion to the national debt over a decade.

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