WASHINGTON (AP) — The federal budget deficit has surged to $779 billion in fiscal 2018, its highest level in six years as President Donald Trump’s tax cuts caused the government to borrow more heavily in order to cover its spending.
The Treasury Department said Monday that the deficit climbed $113 billion from fiscal 2017. Debt will likely worsen in the coming years with the Trump administration expecting the deficit to top $1 trillion in 2019, nearly matching the $1.1 trillion imbalance from 2012.
The deficit worsened because tax revenues are not keeping pace with government spending. The government’s fiscal years run from October to September, unlike calendar years that begin in January. Tax revenues were essentially flat in fiscal 2018.