FILE - In this July 16, 2019, file photo an American flag flies on the Capitol Dome in Washington. On Thursday, Sept. 12, the Treasury Department releases federal budget data for August. (AP Photo/Carolyn Kaster, File)

US budget deficit for 11 months up $169 billion over 2018

September 12, 2019 - 11:05 am

WASHINGTON (AP) — The U.S. government's budget deficit increased by $169 billion to $1.07 trillion in the first 11 months of this budget year as spending grew faster than tax collections.

The Treasury Department reports that the deficit for August totaled $200 billion, compared to $214 billion in August 2018.

Budget experts project a surplus for September, which would push the total 2019 deficit down slightly below the $1 trillion mark. The Congressional Budget Office is forecasting a deficit this year of $960 billion, compared to $779 billion last year.

Going forward, the CBO sees the annual deficit topping $1 trillion in 2020 and never falling below $1 trillion over the next decade. The higher deficits reflect higher government spending for Social Security and Medicare and the impact of the 2017 tax cuts.