The US budget deficit is at an all-time high, with spending up nearly 20% from October to May.
According to a Treasury Department budget report, the US budget deficit reached a new high of $2.06 trillion in the first eight months of the fiscal year, with expenditures rising 19.7% from the same period in 2020.
This year’s deficit is 9.7% greater than the same period last year, when it was $1.88 trillion, according to the monthly report released Thursday. According to the Associated Press, government tax collections increased by 29.1 percent to $2.61 trillion from the previous year.
Tax payments were delivered a month sooner this year than in 2020, which contributed to the higher spending estimates. Since March 2020, the government has poured trillions of dollars toward COVID-19 alleviation through three successive stimulus packages.
The government’s most recent package, passed in March, cost $1.9 trillion. Billion-dollar assistance programs, such as emergency unemployment benefits and forgiven loans, were also implemented.
See the list below for more Associated Press reporting.
The budget deficit for the fiscal year that ended on September 30 reached a new high of $3.1 trillion. President Joe Biden’s first budget, issued earlier this month, projects a $3.67 trillion deficit this year and a $1 trillion deficit every year for the following decade, reflecting his ambitious ambitions to increase spending on infrastructure and American families.
The annual federal deficit first surpassed $1 trillion in 2009, and it remained above that level for four years, as a prolonged recession sparked by the 2008 financial crisis lowered tax receipts, forcing the government to increase expenditure to combat the downturn.
The May deficit was $132 billion, compared to a deficit of $398.8 billion in May 2020, due to substantial expenditures on initial pandemic relief efforts and the extension of the tax deadline.