The US budget deficit hit a record $2.06 trillion during the first eight months of this budget year, as coronavirus relief programs pushed spending to an all-time high.
The Treasury Department said in its monthly budget report on Thursday that the shortfall this year is 9.7% higher than the $1.88 trillion in the same period a year ago.
The report showed that spending from October to May stood at a record $4.67 trillion, up 19.7% from the same period a year ago. Government tax revenue rose 29.1% to $2.61 trillion compared to the same period a year ago.
However, this year’s figure was bolstered by tax payments made in May, a month after the normal April deadline, but a month before last year’s June deadline.
Since the COVID-19 pandemic put 22 million people out of work in March 2020, the government has responded even more strongly with increased spending by trillions of dollars.
Other aid programs provided emergency unemployment benefits and billions of dollars in forgivable loans.
The deficit for the budget year ended September 30 was a record $3.1 trillion. Biden, who released his first budget earlier this month, estimates this year’s deficit will total $3.67 trillion and will top $1 trillion each year over the next decade, a move to boost spending on infrastructure and American households. Shows his ambitious plans.
The annual federal deficit topped $1 trillion for the first time in 2009 and remained above that level for four years as a deep recession triggered by the 2008 financial crisis slashed tax revenues and increased government spending to fight the recession. Hui.
The deficit in May stood at $132 billion, compared to a deficit of $398.8 billion in May 2020 due to heavy spending on initial pandemic relief programs and delayed tax deadlines.