The federal government is on pace to take in record revenue in absolute dollars this year, yet the deficit will increase from last year. That has become the story of our budget, yet neither party has gotten the message that spending is the problem.
According to the Treasury Department, the government took in roughly $28.7 billion more in revenue for the first quarter of this year than in the same period in FY 2017. However, the deficit still increased by $15 billion relative to this time last year because we spent $44 billion more in the first quarter of this year than the first quarter of last year. Yes, for those keeping score, that was the final quarter of Obama’s final year.
In total, for the first quarter of the fiscal year, the federal government has taken in $769.5 billion in revenue and expended $994.5 billion, for a deficit of roughly $225 billion. That is dangerously close to a trillion-dollar deficit, if extrapolated over the entire year. The last time we had trillion-dollar deficits was during the Great Recession. Now the economy is booming. But spending still increased by 4.6 percent, more than double the rate of inflation.
Keep in mind, spending already increased last year by $130 billion despite revenue increasing by $47 billion.
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