The U.S. deficit shot up 17 percent between fiscal year 2017 and fiscal year 2018, according to numbers released by the U.S. Department of Treasury. The deficit last year was 666 billion dollars, while this year it rose to 779 billion dollars.
The deficit now makes up a larger share of the GDP than it did before. Last year the deficit made up 3.5 percent of U.S. GDP. Now the deficit makes up 3.9 percent of GDP. The last time the deficit grew this large was in 2012 when it surpassed 1 trillion dollars.
National deficits arise and grow when government spending outpaces revenue that a government brings in. The main revenue streams for governments comes from taxes. The U.S. implemented tax cuts for many corporations and individuals last year. In addition to cutting this revenue, government spending increased for Medicaid, Social Security, and disaster relief. The Trump administration has proposed dramatic budget cuts for many agencies to reduce the deficit.
U.S. Deficit Balloons 17 Percent
Government Budget
Description
This chart shows the U.S. deficit in billions of U.S. dollars as a share of GDP for fiscal year 2017-2018.
