The federal government posted its biggest monthly budget deficit ever in February as a sharp decline in corporate revenue coincided with increased spending, the Treasury Department announced Friday.
The budget gap widened to $234 billion in February, compared with a fiscal gap of $215.2 billion a year earlier. . . .
“A $234 billion budget deficit is an eye-opening number,” said Robert Bixby, executive director of the Concord Coalition, a bipartisan advocacy group that promotes seeking an end to deficit spending and a balanced federal budget. “Clearly, we’re not growing our way out of a total mismatch between spending and revenues.”
However, Bixby said, “What really surprises me is that anybody is surprised by this.” . . .
“What today’s Treasury report illustrates is part of a pattern of a long-term increase in debt relative to GDP,” Bixby continued. “What’s scary is that it is happening now in a fairly strong economy.
“It makes you wonder what will happen if the economy slows down or if, as has been said, we really are on the verge of a recession,” he said.