Increased government spending and decreased revenue lead the United States to a $146.8 billion budget deficit in May – the largest for the month since 2009, according to Bloomberg News.
The budget gap rose 66 percent last month from a year earlier, the Treasury Department reported on Tuesday. Spending rose by 10.7 percent to $363.9 billion, compared with a 9.7 percent fall in receipts to $217.1 billion.
The government is facing increasing borrowing in the coming years partly due to tax cuts enacted this year and the strain on social and health spending from an aging population. For the first eight months of the fiscal year, the fiscal gap widened to $532.2 billion, up 23 percent from last year’s $432.9 billion deficit.
President Trump’s tax cuts are expected to drive the deficit for 2018 to $804 billion and surpass $1 trillion by 2020.