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Wednesday, January 20, 2021

United States Starts Fiscal 2021 with an October Budget Deficit of $284 billion

The US Treasury Department said on Thursday afternoon that the United States government started the 2021 fiscal year with an October budget deficit of $284 billion, as COVID-19-related outlays spiked significantly from a year earlier and revenues declined.

The US Treasury Department said on Thursday afternoon that the United States government started the 2021 fiscal year with an October budget deficit of $284 billion, as COVID-19-related outlays spiked significantly from a year earlier and revenues declined.

The department pointed out that the October deficit was 111 percent higher than the October 2019 deficit of $134 billion and 61 percent higher than the previous October record of $176 billion in the year 2009, during the financial crisis and recession.

Treasury officials said the 2020 deficit was held down partly by far lower outlays and stronger receipts in the early months of that fiscal year before the lockdowns imposed to contain the spread of the virus closed down large parts of the economy in March.

A Treasury official told the news outlet that revenues for October fell 3 percent to $238 billion, largely due to lower receipts withheld from paychecks resulting from reduced employment levels and a temporary deferment of Medicare and Social Security taxes ordered by US President Donald Trump.

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