ECONOMY – The US Fiscal Deficit Soars In 2019 To Touch The Trillion Dollars

The US budget deficit skyrocketed 26% in fiscal year 2019 until it touched the trillion dollars (984,000 million) the highest figure in seven years, the Treasury Department reported Friday.

The fiscal imbalance as a percentage of the Gross Domestic Product (GDP) increased from 3.8% in 2018 to 4.6% this year.

This increase occurs despite the promises of US President Donald Trump to reduce the imbalance in public accounts and after a tax reform that included notable cuts for companies and, to a lesser extent, for workers.

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He also agreed with Congress to increase budget spending on defense.

Tax revenues increased 4% while disbursements grew 8%, according to Treasury figures.

The fiscal year in the US It concludes in September.

Since Trump's arrival at the White House in January 2017, the deficit has grown steadily and with it the country's massive debt.

During the election campaign, the current Republican president repeatedly criticized the deficit of his predecessor, Democrat Barack Obama.

However, after its first three years of office, the US deficit. it has risen almost 50%, despite having a minimum unemployment rate of almost half a century ago and sustained economic growth above 2% annually.

In 2017 the budgetary imbalance was 666,000 million dollars, and last year it amounted to 779,000 million dollars.

The record for the deficit was reached in 2009 with 1.4 trillion dollars in the middle of the economic crisis following the outbreak of the financial bubble and amid the multimillion-dollar fiscal stimulus provided by the Obama administration to refloat the economy.

When Obama left the White House, the deficit had been gradually reduced to $ 585 billion in 2016.

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