US bud­get deficit jumps less than ex­pected

The Myanmar Times - - International Business -

AFTER fall­ing for sev­eral years, the US bud­get deficit jumped nearly 34 per­cent in fis­cal 2016, the Trea­sury Depart­ment an­nounced, but the short­fall was still smaller than orig­i­nally planned.

The Obama ad­min­is­tra­tion’s bud­get for the year to Septem­ber 30 came in with a US$587 bil­lion deficit, out of the $3.85 tril­lion spent.

A deficit of $28 bil­lion more was fore­cast in Pres­i­dent Barack Obama’s fis­cal 2017 bud­get ear­lier this year, but lower spend­ing than ex­pected by a num­ber of gov­ern­ment de­part­ments lim­ited the rise.

The deficit was far be­low the tril­lion-dol­lar short­falls of 2009-13 when gov­ern­ment spend­ing soared on ef­forts to res­cue the fi­nance and auto sec­tors.

Even if the 2016 deficit came in un­der fore­casts, slower growth over the past year meant that the ra­tio of debt to gross eco­nomic prod­uct – which mea­sures the weight of debt on the econ­omy – jumped to 3.2pc from 2.5pc in fis­cal 2015.

US Trea­sury Sec­re­tary Ja­cob Lew said the deficit would have been smaller if busi­ness tax cuts in­sti­tuted by Congress in late 2015 had been coun­ter­bal­anced by mea­sures to boost gov­ern­ment in­come. –

Newspapers in English

Newspapers from Myanmar

© PressReader. All rights reserved.