China News Agency, Washington, September 12 - the US Treasury Department released a report on the 12th local time that the US government's fiscal deficit has exceeded US $1 trillion before the end of fiscal 2019.
According to the report, when fiscal year 2019 is only 11 months old, the US federal government deficit has reached US $1.07 trillion, 19% higher than the same period last year, accounting for 4.4% of US GDP. This is the highest US government deficit since 2012.
As of this year, the United States has achieved economic growth for 10 consecutive years, but at the same time, the US government's fiscal deficit is increasing. Usually, when the economic situation is good, the fiscal deficit will be reduced.
According to the analysis of the Wall Street Journal, the tax reduction policy of US President trump in 2017 reduced taxes to a great extent, and the increase of government expenditure in this fiscal year led to the increase of fiscal deficit.
The Treasury Department report shows that since May, the U.S. federal tax revenue has increased by 7% year-on-year, showing the current situation of the U.S. strong economy and low unemployment. In terms of government expenditure, military expenditure increased by 9% year-on-year and medical expenditure increased by 10% year-on-year.
According to the White House Office of management and budget in July, the US fiscal deficit in fiscal 2019 will reach US $1 trillion. The Congressional Budget Office expects the US fiscal deficit to be $960 billion in fiscal 2019.
Fiscal year 2019 will end on September 30. It is unknown whether the US government's fiscal deficit will exceed US $1 trillion. According to past experience, the U.S. government's revenue will exceed its expenditure in September.