The federal budget deficit spiked by 17% in 2018, rising to a whopping $779 billion.
According to a report from The New York Times, much of the winter weight in the deficit can be ascribed to the loss of tax revenues due to tax cuts under the Trump administration.
Last year, the deficit was $666 billion and, at its current rate of growth, it could balloon to over $1 trillion before the next presidential election.
This year’s deficit is the largest since 2012.
According to the report, administration officials attribute the rapidly rising deficit to greater federal spending, including the military and domestic budget increases President Donald Trump approved this year, and not the $1.5 trillion tax cut.
“President Trump prioritized making a significant investment in America’s military after years of reductions in military spending undermined our preparedness and national security,” Treasury Secretary Steven Mnuchin said in a statement.
“Going forward, the president’s economic policies that have stimulated strong economic growth, combined with proposals to cut wasteful spending, will lead America toward a sustainable financial path,” he added.