US budget deficit jumps in May as spending outpaces revenue
Receipts from individual and corporate taxes rose 7 percent last month from
Tax revenue is rising, but at a slower pace than in previous years and by less than the
That is widening the deficit at the same time the Trump administration has proposed steep tax cuts. The administration has also pushed for sharp reductions in spending, but Trump's proposed budget depends on annual growth of 3 percent to balance over time. The economy expanded 1.6 percent last year and hasn't grown 3 percent since 2005.
Meanwhile, the deficit has increased to
Medicaid costs have risen 3 percent, partly because the Obama administration's Affordable Care Act has brought more people in the program. Defense spending jumped 17 percent in May but has been flat this year.
The government has also spent
Also Monday, a
The think tank says that revenue results from this month's quarterly tax payments are likely to clarify the deadline, but for now Mnuchin has sufficient maneuvering room — by using accounting steps known as "extraordinary measures" — to keep the government solvent into the fall. The policy center says a big
The
The CBO's deficit estimate is based on current law remaining unchanged. President
Under Trump's proposal, released last month, the deficit would increase this year to
Associated Press Writer
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