Budget Deficit Nears $1 Trillion, Highest Level Since 2012

The federal budget deficit for the 2019 fiscal year stands $984 billion, up 26 percent from the $779 billion deficit recorded at the end of 2018, the Treasury Department announced on Friday.

The deficit has exploded over the past year despite substantial economic growth. GOP tax cuts in 2017, combined with increased discretionary spending and a failure to rein in entitlement programs, have contributed to the increase.

The deficit stood at $665 billion in 2017 prior to the passage of tax cuts that are projected to increase the deficit by $2 trillion over ten years, according to the Congressional Budget Office.