Treasure Department released a monthly budget on Thursday. According to the report, budget deficit increased slightly than last year. Both Obama administration and Congress forecasted this year's deficit to increase by more than 20% from last year.
The government ran a $193 billion budget deficit in February.This year, there is a 0,1% increase from last year's $192.6 billion deficit.
U.S. Treasury Department reported in this budget year, the deficit stands at $353 billion, down 8.7% from the same period in 2015. However, ABC News predicted the improvement will not last. The President Obama administration and the Congressional Budget Office (CBO) are forecasting full year deficit will be higher than last year 's $439.1 billion.
Congress expected the deficit to increase by 24% in this year to $544 billion. While Obama administration is more pessimistic with $616 billion deficit forecast, the worsening deficit is expected to be mounting over the next decade, driven by rising costs in Social Security and Medicare, as millions of people will retire in the next decade.
In 2016, budget year began October 1 wherein the government collected $1.25 trillion in revenue and spend a total of $1.6 trillion. The revenue collected was a 5.3% increase, while spending is up 1.9% from last year.
Meanwhile Wall Street Journal reported that over the 12-month period ended in February, the U.S. deficit was currently steady at $405 billion. That number is at 2.2% of the the country's GDP, and a reduction from last year's $495 billion 12-month deficit which equal to 2.8% of GDP.
In December, Congress has approved budget package to increase spending by $1.14 trillion this year, and provide $680 billion tax cuts over the next decade. The agreement was achieved as a compromise between Obama administration and Congress. That included to increase domestic and military spending, as well as establishing permanent tax cuts for business investment.
Concerning the deal, Defense Secretary Ash Carter asked Congress to stick to December's bipartisan agreement. Secretary Carter worried that reopening the deal would create inefficiencies as his department needs stability to plan its spending levels. Thus, preparing itself for the complex challenges it faces around the world.
"We've got to come together in Washington and break the gridlock for such important functions as funding the federal government," Carter said in an event hosted by Microsoft Corp on Thursday as quoted by Reuters. "We can't go in every fiscal year with chaos and continuing resolutions. That's a money waster ... because it causes us to manage inefficiently."
As Treasure Department published the government budget report in February, the government will continue to implement fiscal package agreement in December. However, both Obama administration and Congress predicted this year's deficit to be higher than last year by at least 24%.
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