The federal budget deficit surged to $530 billion in the first eight months of fiscal 2018, which began in October, surpassing last year's deficit over the same period by $97 billion, according to new figures.

The Congressional Budget Office (CBO) said in a report released Thursday that government spending surged 6 percent relative to last year, while revenues only increased 3 percent.

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Budget watchers projected that the combination of the GOP tax bill, which slashed tax rates, and the bipartisan agreement to increase government spending would push up the deficit.

Corporate tax revenues, for example, were down $42 billion, about 25 percent, though much of that revenue reflected 2017 taxes, CBO said.

The government spent a whopping $239 billion on interest payments alone, up 15 percent from the same period last year.

CBO has predicted that federal deficits will top $1 trillion in 2020.