The deficit rose to $ 779 billion in fiscal 2018, up 17% over the previous year, according to final figures released Monday by the Ministry of Finance. That's the largest number since 2012, when the country was still massively pushing for an economy that can not recover.
Government revenue was flat this year compared to last year. Corporate tax revenues declined $ 76 billion, or 22%, as a result of Republican-backed tax cuts. However, this decline was more than offset by higher income from individual and self-employed taxes. The financial year ended on 30 September.
Expenditure increased 3% year-over-year, partially due to increases in the defense budget agreed in September 201
The White House budget chief, Mick Mulvaney, a notable debt investigator while he was a Congressman, said the numbers underscored the need to cut spending.
"The President is well aware of the realities of our sovereign debt," Mulvaney said in a statement. "America's booming economy will lead to higher government revenues – an important step towards long-term fiscal sustainability – but this household image warns Congress of the dire consequences of irresponsible and unnecessary spending."
"People will say the deficit is due to tax cuts, which is not the real story," Mnuchin told CNN. "The real story is that we made a significant investment in the military, which is very, very important, and to do that we had to increase non-military spending."
With rising interest rates, servicing these rising debts could be challenging. The Treasury Department spent $ 522 billion last year paying interest, 14% more than the year before. That's more than Medicaid costs annually.