Deficit spikes 41 percent in first quarter of fiscal year
Deficit spikes 41 percent in first quarter of fiscal year
BY NIV ELIS - 01/08/19 03:31 PM EST
The federal deficit spiked $92 billion in the first quarter of the 2019 fiscal year, a 41-percent increase over the same period of 2018, according to the Congressional Budget Office (CBO).
The GOP tax plan slashed revenues relative to spending, which increased as part of a bipartisan spending deal. Total receipts rose by less than 1 percent, shrinking as an overall share of the economy. Corporate taxes, in particular, plunged $9 billion, or 15 percent.
Outlays, in the meantime, spiked $93 billion, or 9 percent.
Mandatory programs such as Social Security, Medicare and Medicaid were also major contributors to the deficit, accounting for a combined $17 billion of the increased spending.
....