US tax revenues are down and spending is up. The net result speaks for itself: U.S. Budget Gap Widened 77% in First Four Months of Fiscal Year.

The government ran a $310 billion deficit from October through January, compared with $176 billion during the same period a year earlier, a 77% increase, the Treasury Department said Tuesday.

Federal outlays climbed $115 billion, or 9%, in the first four months of fiscal 2019, which began Oct. 1, driven by higher spending on the military, veterans’ affairs and interest on the debt. Total receipts declined $19 billion, or 2%, due to weaker corporate and individual income-tax collection.

Part of the percentage increase in the deficit was attributable to a shift in the timing of certain payments, which made the deficit appear smaller in the first four months of fiscal year 2018, the Treasury said. If not for those timing shifts, the deficit would have risen 40.2% so far this fiscal year.

On a 12-month basis, government revenues declined 1.5%, while outlays have risen 4.4%. The budget deficit rose to $913.5 billion for the 12 months ended January, or 4.4% of gross domestic product.

Comment of the Day

My award for comment of the day goes to Director Keith Hall of the nonpartisan Congressional Budget Office.

It’s hard to imagine this is sustainable,” said Keith Hall

Indeed.

Mike "Mish" Shedlock

Budget Deficit Lies: What's the Real Deficit?

The Office of Management and Budget announced a 2019 budget deficit of $984 billion. What is it really?

US Budget Deficit Nearly Doubles in August: Treasury Dept Cites Holiday Schedule

A Treasury report shows the budget deficit exploded higher in August. The Treasury blames a holiday calendar

Projected US Budget Deficit Lie in Four Pictures

Nearly every year, the national debt rises more than the deficit. The picture is guaranteed to get worse.

Trade Deficit Widens Despite Tariffs: Record Deficits With China, Mexico

Today's trade report will set off hows from trump. Imports up, exports down. Record deficits with China and Mexico.

Trade Deficit Widens as Imports Rise More Than Exports

The international trade deficit was $69.7 billion in November, up $1.6 billion from $68.1 billion in October.

Republican Hypocrites Ignore Trump's Lies, Praise Irresponsible Budget

Trump passed a budget that will increase the deficit to a trillion dollars. His supporters cheer.

Trade Deficit Unexpectedly Widens (And It Will Get Worse)

The trade deficit widened to $-74.4 billion from $-72.3 billion. Economists expected the deficit to shrink slightly.

US Deficit at $590 Billion but Debt Up $1.2 trillion: Sleight of Hand Magic

The US deficit is up $590 billion so one might think total US debt would rise by that amount or at least something close to that amount.

Rosy Look of the Ballooning Deficit

Thanks to tax cuts and spending increases, US deficit estimates are spiraling up. Let's investigate some estimates.