Budget deficit hits record $3.1 trillion
The federal budget deficit soared to a record $3.13 trillion in the 2020 fiscal year, official figures showed on Friday, as the coronavirus pandemic fueled enormous government spending while tax receipts plunged as households and businesses struggled with economic shutdowns.
The shortfall underscores the long-term economic challenge facing the United States as it tries to emerge from the sharpest downturn since the Great Depression.
The deficit — the gap between what the U.S. spends and what it earns through tax receipts and other revenue — was $2 trillion more than what the White House’s budget forecast in February. It was also three times as large as the $984 billion deficit in the 2019 fiscal year.
The federal government spent $6.55 trillion in 2020 (up 47.3%), a large portion of which can be attributed to the $2.2 trillion relief legislation that Congress passed in March.
The government brought in $3.42 trillion in tax revenue this year, a slight decrease from 2019.
At: https://www.nytimes.com/live/2020/10/16/business/us-economy-coronavirus
President Donald Trump speaks during a recent press conference, as Treasury Secretary Steven Mnuchin, OMB Budget Director Russell Vought and Dr. Scott Atlas listen.
The federal budget deficit as a percentage of GDP (15%), reached its highest level since the 20% recorded in 1945.
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