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MarketWatch, 10/20/2017
The numbers: The federal government finished fiscal 2017 with a budget deficit of $666 billion, an increase of $80 billion over the previous year. It was the biggest shortfall since 2013 and the sixth-highest on record.
The deficit equaled 3.5% of gross domestic product, up slightly from the prior year. Spending rose by 3% for the fiscal year, while receipts climbed by 1%. The government’s fiscal year runs from October through September.
What happened: Higher outlays for Social Security, Medicare, and Medicaid, as well as interest on the public debt, contributed to the boost in spending for the year, the Treasury Department said. Higher spending by the Federal Emergency Management Administration for hurricane relief also boosted overall outlays. The agency’s disaster relief spending climbed by 33% for the year.
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