Defense & Intelligence Policy, Business and Technology

Seeing red: US deficit jumps $779 billion, adding budget pressure

Defense News: The U.S. federal government is sliding deeper into the red.

The country’s deficit rose to $779 billion in fiscal 2018, its highest level in six years as Republican-led tax cuts caused the government to borrow more heavily. That represents a jump of 17 percent over last year, the largest figure since 2012, when the U.S. was spending to stimulate its economy.

The higher deficit spending is expected to add downward pressure on future defense budgets. On Oct. 16, U.S. President Donald Trump called for government spending to be cut 5 percent across every federal department, and while his prescription for future defense spending was confused, he seemed to suggest a cut from $717 billion in FY19 to $700 billion in FY20.

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