America calls for "austerity" after the worsening of the budget deficit
10:45 - 26/10/2019
Information / Baghdad ..
US Treasury Secretary Stephen Mnuchin has called for a reduction in "waste and irresponsible expenditures" after the US budget deficit widened to its highest level since 2012.
The US budget deficit rose 26 percent in fiscal 2019 to close to $ 1,000 billion despite the economy's growth and new tariff revenues stemming from the trade war with China.
The US Treasury said Friday that the federal deficit for fiscal year 2019, which ended in September, was $ 984 billion, or 4.6 percent of GDP.
The deficit is the largest since 2012, when it reached $ 1,100 billion under former President Barack Obama, as the world's first economy emerged from the financial crisis and from a major downturn.
Officials at the US Treasury Department said punitive tariffs imposed on Chinese goods as part of the Trump administration's trade confrontation with Beijing generated record revenues of $ 30 billion, a 70 percent increase over normal conditions.
But that did not prevent the deficit increasing by an additional $ 205 billion from 2018.
US Treasury Secretary Stephen Mnuchin stressed that President Donald Trump's economic program is working, calling on lawmakers to curb "waste and irresponsible spending."
Imports rose 4 percent to $ 3462 billion, a record high, but the pace of increase was twice that, or 8 percent, to $ 4447 billion, a historic record.
In terms of expenditures, the aging of the population, which coincides with higher pensions (+6%) and health insurance expenses (+8%) for the poorest (Medi-Aid) and older (Medicare), had a significant impact on this deficit.
But the deficit also rose due to a $ 51 billion increase in debt service (10 percent), increased military spending (+ 9 percent) and aid to farmers suffering from the US-China tariff war. Done / 25