Supporters of republican presidential candidate former Massachusetts Gov. Mitt Romney stand next to a national debt clock during a rally at Exeter High School on 8 January 2012 in Exeter, New Hampshire. Photo: Justin Sullivan / Getty Images
Supporters of republican presidential candidate former Massachusetts Gov. Mitt Romney stand next to a national debt clock during a rally at Exeter High School on 8 January 2012 in Exeter, New Hampshire. Photo: Justin Sullivan / Getty Images

By Bob Bryan
22 March 2019

(Business Insider) – The US posted a record budget deficit in the month of February, according to a new report from the Treasury Department.

The budget deficit for February came in at $234 billion, according to the Treasury, higher than the previous monthly record of $231.7 billion set in 2012. The deficit was also 8.7% higher than the $215.2 billion deficit posted in February 2018.

The budget deficit measures the shortfall of government revenues compared to what the government spends. Recent legislative changes have driven the deficit up to its highest levels since the financial crisis.

The deficit for the first five months of the government’s 2019 fiscal year, which runs from October 2018 through October 2019, hit $544.2 billion — up 40% from the first five months of fiscal year 2018.

Second, spending is soaring due to the bipartisan budget compromise from early 2018 and long-term programs. Spending for the start of fiscal year 2019 is up 9% compared to the same time period last fiscal year. [more]

The growing deficit has been fueled by two big factors. First, President Donald Trump’s and the GOP’s tax reform law — named the Tax Cuts and Jobs Act (TCJA) — has caused revenues to slide. According to the Treasury, revenue for the first five months of fiscal year 2019 is down a little less than 1% compared to the same period the year before. [more]

The US posted a $234 billion budget deficit last month, the biggest one-month deficit in history

U.S. Federal deficit, 1998-2018, 12-month rolling average. Graphic: Haver Analytics
U.S. Federal deficit, 1998-2018, 12-month rolling average. Graphic: Haver Analytics

U.S. runs largest monthly budget deficit on record in February

By Robert Schroeder
22 March 2019

(MarketWatch) – The numbers: The federal government ran a budget deficit of $234 billion in February, the Treasury Department reported on Friday, the biggest monthly shortfall on record.

It was wider than the $215 billion recorded in February 2018, as spending rose 8% while receipts climbed 7%. Previously, the largest monthly deficit was $231.7 billion in February 2012.

The release of the February figures was later than normal due to the 35-day shutdown that ended Jan. 25.

What happened: Total spending was $401 billion in February while the government took in $167 billion. [more]

U.S. runs largest monthly budget deficit on record in February