The federal government has spent more real money in the first seven months of this fiscal year than any other year in U.S. history, according to the latest monthly statement by the Department of Treasury. The previous record was set in 2011, when the U.S. was recuperating from the Great Recession.
In total, the U.S. spent $2.574 trillion, which marks an 8 percent increase over last year. The government also ran a $531 billion deficit from October through April, that’s a 38 percent increase over the the $385 billion deficit over the same period last year.
The change was largely due to an increase in military spending, healthcare and interest on debt owed, said the Treasury.
Meanwhile, the Congressional Budget Office released a report last week saying that President Donald Trump’s 2020 budget proposal relied on overly optimistic economic assumptions and that the deficit would continue to grow from 78 percent of gross domestic product in 2018 to 87 percent of GDP by 2029. The president’s budget assumed that the deficit would be $2.7 trillion lower than what the CBO estimated.
The president passed a $1.5 trillion tax bill his first year in office and sent Congress a record-breaking $4.75 trillion budget proposal in March. President Trump’s interim chief of staff Mick Mulvaney said in April that his administration was “spending a bunch of money on stuff we’re not supposed to.”