"Going forward, President Trump and this administration will continue to work with Congress to make the hard choices needed to bring fiscal restraint, which, when matched with increasing revenue, will reduce our deficit", he said.
The government is expected to borrow a trillion dollars in the coming year, in part to make up for tax receipts that have been slashed by GOP tax cuts.
Secretary of the Treasury Steve Mnuchin announced the shortfall Monday, but said that because of a combination of factors, the Treasury Department had predicted a budget deficit $70 billion higher.
This year's budget deficit was the highest in six years.
The U.S. government's budget deficit hit $779 billion in the fiscal year that ended September 30, while spending increased and tax revenues remained almost flat, the Treasury said Monday. Tax revenue dropped from 17.2 percent of the U.S. GDP to 16.5 percent, while overall federal government spending rose by 3 percent. With the country already facing a national debt of more than $20 trillion, massive annual deficits in future years are likely to drive-up the cost of borrowing and cause America's already astronomical debt to grow at a faster pace, he warns.
Budget deficits occur when the federal government spends more than it earns.
Revenues generally tumbled after December when Trump signed into law US$1.5 trillion of tax cuts over the next decade.
But the Congressional Budget Office, a nonpartisan arm of Congress, forecasts government spending will outweigh revenue by $973 billion in fiscal 2019 and more than $1 trillion the next year.
However, despite the strong economy, federal revenue only rose by $14 billion.
"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", Treasury Secretary Steven Mnuchin said in a statement. "The fact that our government is closing in on trillion-dollar deficits in the midst of an economic expansion should be a serious issue for voters and candidates", William Hoagland, its senior vice president, said of next month's USA congressional elections.
The US government's budget director, Mick Mulvaney, said the nation's "booming economy will create increased government revenues - an important step toward long-term fiscal sustainability".
Top White House economic adviser Larry Kudlow has suggested in recent weeks the administration may pursue spending cuts in social programmes - something Democrats say will mean reducing the safety net for health care and retirement for the poor and elderly.