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US budget deficit reached $ 600 billion in October-March

UNITED STATES (OBSERVATORY) –┬áThe deficit of the US state budget in the first half of the 2018 financial year increased by 14% compared to the same period last year and amounted to $ 599.71 billion, according to the data of the country’s Ministry of Finance.

The budget revenues in October-March increased by 1.6% in annual terms to $ 1.5 trillion. At the same time, expenses increased by 4.8% to $ 2.1 trillion.

Corporate income tax revenues in the first half of 2018 fell to $ 78.6 billion from $ 100.2 billion a year earlier.

In March, the budget deficit increased to $ 208.7 billion from $ 176.2 billion in the same period last year.

According to the estimates of the Budget Office of the Congress (CBO), in fiscal year 2018 the US budget deficit will be $ 804 billion instead of $ 563 billion, expected in June. In fiscal year 2017, the deficit was $ 665 billion.

In fiscal year 2019, the deficit is projected to reach $ 981 billion instead of the previously expected $ 689 billion. The

negative balance of the US budget will exceed $ 1 trillion by 2020, two years earlier than previously thought, as a result tax cuts and increased costs, the CBO warned.

The tax reform of the administration of the US President Donald Trump will reduce the revenues of the federal budget.

In February, the US Congress approved a two-year budget agreement that increases federal budget spending by almost $ 300 billion.