The U.S. budget deficit has surged to a record of $1.9 trillion for the first seven months of this budget year.
So far, the shortfall this year is 30.3% higher than the $1.48 trillion deficit increase over the first seven months of last year, according to the U.S. Department of Treasury.
The coronavirus has heavily impacted the budget, which lead to the government pouring trillions of dollars into relief packages. The deficit for the budget year, that ended Sept. 30, totaled a record of $3.1 trillion and this year’s total is expected to surpass that total.
For April, the deficit totaled $225.6bn, which is lower than last year’s April deficit of $738bn. That improvement reflected the fact that fewer relief payments were made this year and individuals making quarterly tax payments had to meet the typical April deadline. Last year, all tax payments were delayed due to the pandemic.
Revenue totaled $2.14 trillion during the October-April period, which is a 16.1% increase from last year’s numbers. The number likely increased due to quarterly tax payments. 2020’s April payment was delayed after 22 million people lost their jobs amid pandemic shutdowns.
Outlays for the first seven months of this budget year totaled $4.07 trillion, up to 25.8% from last year. In both periods, the government was passing pandemic relief bills.
The $1.93 trillion deficit for the first seven months of this budget year was $459.4bn higher than the $1.48 trillion deficit increase last year.
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