Government report says US budget deficit set to hit $897B

28 January 2019 | 18:30

Source: Associated Press

  • Source: Associated Press
  • Last update: 28 January 2019 | 18:30

In this Oct. 26, 2018, file photo the rising sun silhouettes the U.S. Capitol dome at daybreak in Washington. (AP Photo/Alex Brandon)

WASHINGTON:  The U.S. budget deficit is set to hit $897 billion this year and predicts that economic growth will slow as the effects of President Donald Trump’s tax cut on business investment begin to drop off, a new government report said.

The Congressional Budget Office Report predicted a $118 billion increase over last year’s $779 billion deficit.

The CBO predicted in a report released Monday that the economy will grow by 2.3 percent this year, a slowdown from 3.1 percent last year.

The report comes as the government is reopening after a 35-day partial shutdown. The CBO says the shutdown will have a modest negative impact on the economy.

The report lands in a divided Washington, where neither Trump nor Democrats controlling the House are expected to make curbing the deficit a priority.

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