The federal budget deficit is expected to grow as the $1.5 trillion tax cut begins to kick in this year, but it got a running start this past fall, before the tax bill had taken effect.
According to Bloomberg, “The U.S. budget gap rose 7 percent to $225 billion in the first quarter of the government’s fiscal year from a year earlier, the Treasury Department reported on Thursday. Spending rose at a slightly higher pace than revenue, increasing 5 percent to $994.5 billion between October and December. Receipts gained 4 percent to $769.5 billion.”
The widening gap was driven by increased spending on defense, Social Security and hurricane relief, according to the Congressional Budget Office.
