FAST FIVE: US Government Spending Soars To All Time High As Deficit Hits Record For Month Of May
Another month, another frightening jump in the US budget deficit.
According to the latest Treasury data, the US budget deficit in May – not a traditionally high-spending month for the US government – was a whopping $208 billion, missing the $200 billion deficit expected, and well worse than the $147 billion deficit recorded last May.
And even though there may have been one-time calendar effects and time-shifts at play, the deficit was also the biggest budget deficit for the month of May on record.
According to the CBO, the budget deficit in fiscal 2019 will widen to $897 billion, up by $118 billion from a year earlier; any economic recession will result in a far greater number.
As a reminder, according to the Treasury's conservative budget estimates, interest on the US public debt is on track to reach a record $591 billion this fiscal year, more than the entire budget deficit in FY 2014 ($483 BN) or FY 2015 ($439 BN), and equates to almost 3% of estimated GDP, the highest percentage since 2011.