Budget deficit hits $207.8B

The federal government’s budget deficit in May rose to a record $207.8 billion, 41.5 percent higher than a year ago. Most of that increase reflected the impact of calendar quirks that shifted $55 billion in June benefit payments into May. The Treasury Department says the increase in the May deficit from an imbalance of $146.8 billion in May 2018 reflected the fact that because June 1 fell on a Saturday, benefit payments for June were paid out in May. Through the first eight months of this budget year, the budget deficit totals $738.6 billion, an increase of 38.8 percent over the same period last year. Last year’s budget deficit of $779 billion is expected to climb sharply this year with the Trump administration forecasting it will top $1 trillion.