The White House said Friday that faltering tax revenues will cause the budget deficit to rise to $702 billion this year, $99 billion higher than was predicted in late May.
The Office of Management and Budget’s report also said the deficit for fiscal 2018, which begins Oct. 1, will increase by $149 billion to $589 billion. Last year’s deficit was $585 billion.
The report said the fault lies with “the failed policies of the previous administration.”
“The rising near-term deficits underscore the critical need to restore fiscal discipline to the nation’s finances,” said White House Budget Director Mick Mulvaney. “Our nation must make substantial changes to the policies and spending priorities of the previous administration if our citizens are to be safe and prosperous in the future.”
In May, Mr. Trump unveiled his first federal budget with proposed cuts to domestic programs and a promise to balance the budget within 10 years. But the nonpartisan Congressional Budget Office said the administration is counting on rosy projections of economic growth, an average of 3 percent annually, that aren’t likely to be achieved.
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