U.S. budget deficit jumps 34% in October, gap set to top $1 trillion in 2020

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U.S. budget deficit jumps 34% in October, gap set to top $1 trillion in 2020
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The U.S. on course to top the $1 trillion mark in fiscal 2020 for the first time in eight years.

The numbers: The federal government’s budget deficit in October rose 34% from a year earlier to $134.5 billion, putting the U.S. on course to top the $1 trillion mark in fiscal 2020 for the first time in eight years.

The amount of tax receipts the government took in, meanwhile, dipped 3% to $246 billion. Excise taxes fell sharply and income and corporate taxes also declined. Big picture: U.S. budget deficits began increasing again in 2016 and have risen four straight years. A combination of large tax cuts in 2017 and higher federal spending is expected to push the deficit above $1 trillion in the current fiscal year that ends next September or nearly 5% of gross domestic product.

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