WASHINGTON: US economy faces the worst blow of the decade as the US budgetgap soared past $1 trillion with a month still to go in the fiscal year —the first time it has surpassed that level since 2009, the US Treasuryreported Thursday.
One standout item in the government books was the surge in tariffscollected compared to last year — something President Donald Trump has longtouted as proof he is winning the trade war with China, even though theduties are paid by American companies.
The US deficit in the 11 months through August topped $1 trillion, 19 percent higher than the same period of the previous year, as spendingincreased by more than double the rate of income, according to the monthlyreport. The US fiscal year used for budgeting ends September 30.
Customs duties going into government coffers surged 73 per cent to $66billion, however, Trump has imposed a new round of tariffs on Chinese goodsthat are set to hit on September 1.
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Total revenues were up three per cent in the fiscal year-to-date, at over$3 trillion, but total outlays increased seven per cent compared to a yearago, passing $4.15 trillion.
