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Sunday, September 19, 2021

US budget deficit exceeded $2 trillion in 8 months of fiscal year

The US government deficit fell 66.9% in May to $ 131.953 billion, up from $ 398.754 billion in the same month last year, the country’s Treasury said.

This was due, among other things, to the calendar factor – the postponement of the payment of certain taxes by individuals and companies, as well as a number of payments from the budget.

Budget revenues increased 2.7 times last month – to $ 463.745 billion from $ 173.861 billion a year earlier.

Expenses increased by 4% to $ 595.698 billion against $ 572.614 billion in May last year.

For eight months of 2021 fiscal year, which began on October 1, the negative US budget surplus increased by 9.8% compared to the same period a year earlier and amounted to a record $ 2 trillion 63.789 billion.

The volume of budget revenues since the beginning of the current fiscal year has grown by 29.1% – to $ 2.607 trillion, including due to an increase in taxes on income of individuals and companies.

Expenditures increased by 19.8% to $ 4.671 trillion due to the cost of programs to support small businesses and households.

Both figures are also record highs.

The negative balance of the US state budget at the end of the 2020 fiscal year, which ended on September 30, grew 3.2 times and amounted to a record $ 3.132 trillion.

At the same time, the deficit rose to 15.2% of GDP, which is the maximum since 1945. For comparison: during the financial crisis in 2009, it was equal to $ 1.413 trillion, or 9.8% of GDP.

Also Read:

The US budget surplus peaked at 27% of GDP in 1943 and then remained above 20% of GDP in 1943-1945. The last time a budget surplus was recorded in the US was in 2001.

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