Federal Deficit Jumps 17 Percent As Tax Cuts Eat Into Government Revenue

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October 16th, 2018

Treasury Building in Washington, D.C. The trend towards rising red ink was widely anticipated, given the GOP tax cuts and other government policies, including the president’s demand for beefed-up military spending.

Chip Somodevilla / Getty Images

Updated at 4 p.m. ET

The federal deficit ballooned to $779 billion in the just-ended fiscal year — a remarkable tide of red ink for a country not mired in recession or war.

The government is expected to borrow more than a trillion dollars in the coming year, in part to make up for tax receipts that have been slashed by GOP tax cuts.

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