Fiscal 2019 Deficit by Month

Below is a chart comparing the monthly deficit or surplus of the United States with the prior fiscal year (October 1 through September 30). During Fiscal 2019, the federal government overspent by $984 billion, which is $205 billion more than the $779 deficit for Fiscal 2018.

As a percentage, the U.S. deficit rose by a whopping 26.3%. Fiscal 2019 receipts increased by 4%, but spending increased by twice as much. You don’t have to be a financial wizard to recognize there is a problem when spending is increasing at twice the rate of revenues. This trend is not sustainable.

Does it alarm you the federal government overspent by nearly $1 trillion last year, and that spending is growing twice as fast as revenues?

Fiscal 2018 Deficit Through April

The graph below illustrates the monthly deficit or surplus for Fiscal 2018. 

The cumulative deficit through the end of April is $382 billion, which is $39 billion more than last fiscal year. The large surplus in April is primarily due to the payment of individual taxes that were due April 15th. Based on current projections, the federal government won't have another surplus month this fiscal year and the deficit will more than double over the next five months.

What are your thoughts about the Fiscal 2018 deficit?

The Budget Process-As It's Supposed to Work

Congress has established a process for how the budget process is supposed to work. However, this process has not been followed for years.

Below is a quick synopsis of the process.

• The President delivers his proposed budget between the last Monday in January and the first Monday in February.
• The Congressional Budget Office (CBO) scores the President's proposed, which estimates the projected revenues and expenditures and the CBO results are compared to the estimates prepared by the Office of Management and Budget (OMB)
• The House and Senate pass a Budget Resolution outlining the revenue and spending priorities of Congress. As a Congressional Resolution,  the President does not sign the Budget Resolution.
• Congress passes 12 separate Appropriations Bills authorizing the specific spending by the various Departments and Agencies of the U.S. government.

The last time Congress passed all 12 appropriations bills on time was in 1994. For the last 20+ years, they have consistently used omnibus spending bills and continuing resolutions, where they combine more than one appropriations bills (or all of them), into one piece of must-pass legislation, to fund the government. 

Is it possible there is a correlation between the departure from the established budget process and the increase in annual budget deficits?

The next post will provide a status overview of the Fiscal 2017 budget and appropriations bills.