Bloomberg reports that the U.S. posted its largest monthly budget deficit on record last month. This comes as corporate and individual tax revenue falls, and federal spending rises.
The budget gap grew to $234 billion in February. A year earlier, the fiscal gap was $215.2 billion, which surpassed the monthly record of $231.7 billion, which was set seven years ago.
The shortfall in February pushed the deficit for the first five months of the fiscal year to $544.2 billion, which is up 40% from the same period the year before. Receipts fell less than 1% to $1.3 trillion in the period from October to February from the previous year, while at the same time, spending grew 9% to $1.8 trillion.
The shortfall is growing after Trump’s tax-cut package, which is now raising concerns about the national debt load. The load topped $22 trillion last month, a record high.
In a press conference on Wednesday, Federal Reserve Chairman Jerome Powell voiced his concern about the deficit, saying it needs to be addressed. Many economists have expressed their belief in the dangers of a growing deficit, *"*as low inflation and cheap borrowing costs suggests there’s room for additional spending," Bloomberg noted.
Tax receipts for corporations and individuals alike have declined in the five month period, and revenue from customs duties nearly doubled.