US deficit soars to $342B in two months

Shortfall for 2019 was $984B

The U.S. government deficit spiked 12 percent to $342 billion during the first two months of fiscal year 2020, according to data from the Congressional Budget Office.

Continue Reading Below

The CBO says the U.S. budget deficit will average $1.2 trillion a year from 2020 to 2029, amounting to 4.4 percent to 4.8 percent of gross domestic product.

RETAILERS STOCKING UP TO AVOID BITE OF NEW TARIFFS

During October and November, revenue rose 3 percent from a year ago to $471 billion. Receipts from individual and payroll taxes climbed 4 percent, or $17 billion, while receipts from corporate income taxes were up 14 percent, or $1 billion. Receipts from other sources, such as excise taxes and customs duties, fell 11 percent, or $5 billion.

Meanwhile, expenditures rose 6 percent to $813 billion during the first two months of the fiscal year, which runs from October through September. Spending on mandatory programs, such as Social Security, Medicare and Medicaid, was up $22 billion, or 7 percent. Outlays for military programs of the Department of Defense climbed 7 percent, or $8 billion, while Department of Education spending climbed $3 billion, or 25 percent.

The federal deficit was $587 billion when President Trump took office in January 2017, and had ballooned to $984 billion in 2019.

CLICK HERE TO READ MORE ON FOX BUSINESS

The national debt is now more than $23.1 trillion, according to usdebtclock.org.