Published on 11/8/2021 3:49 PM
(Photo: The Canadian Press)
The US federal government’s budget deficit is $2.540 billion for the first 10 months of the fiscal year, not least because of the spending needed to combat the recession caused by the coronavirus pandemic.
This figure confirms that the United States is heading towards the second largest budget deficit in its history, after the deficit it incurred in the fiscal year ending September 30.
But the Treasury indicated on Wednesday that the deficit is 9.5% smaller than it was at the same time last year.
This is due to the increase in tax revenues with the recovery of the economy and the end of many emergency programs that were put in place last year.
The deficit for fiscal year 2020 was $3.1 trillion, an unprecedented amount. The US Congressional Budget Office projects a deficit of $3.1 trillion this year and $1.2 trillion next year.
However, these projections do not take into account two bills currently changing Congress: a $1 trillion infrastructure plan, and a $3.5 trillion plan (supported only by Democrats) to combat issues such as poverty and climate change.
During the 10-month period between October and July, the US government reported revenue of $3,320 billion, up 17.5% from the same period last year.
Spending during the first 10 months of the fiscal year was $5,860 billion, an increase of 4% from last year.
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