By Kate Davidson 

WASHINGTON -- The federal government started its new fiscal year much as it ended the last one -- with spending up and revenues lagging behind the broader economy.

The U.S. Treasury Department said Tuesday the government ran a $100 billion deficit last month, compared with a $63 billion budget gap in October 2017, as spending growth outpaced revenue growth. As a share of gross domestic product, the deficit totaled 4%.

Treasury said federal outlays rose 18% in the first month of the 2019 fiscal year compared with a year earlier, in large part because of higher spending on Medicare, national defense and interest payments on the debt.

The Treasury said government receipts rose 7% in September compared with September 2017, but were only 0.5% of gross domestic product, even as economic output has ramped up this year.

Write to Kate Davidson at kate.davidson@wsj.com

 

(END) Dow Jones Newswires

November 13, 2018 14:20 ET (19:20 GMT)

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