Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe U.S. government’s deficit in the first two months of the budget year ran 25.1% higher than the same period a year ago as spending to deal with the COVID pandemic soared while tax revenues fell.
The Treasury Department reported Thursday that with two months gone in the budget year, the deficit totaled $429.3 billion, up from $343.3 billion in last year’s October-November period.
The deficit—the shortfall between what the government collects in taxes and what it spends—reflected an 8.9% jump in outlays, to $886.6 billion, and a 2.9% decline in tax revenues, to $457.3 billion.
Spending for the first two months of the budget year, which begins Oct. 1, also set a record, while the deficit over the same period was also a record.
The government’s deficit for the budget year that ended Sept. 30 was a record-shattering $3.1 trillion, fueled by the trillion-dollar-plus spending measures Congress passed in the spring to combat the economic downturn triggered by the pandemic. The recession, which has seen millions of people lose their jobs, has meant a drop in tax revenues.
Congress is debating another relief package that could total nearly $1 trillion, which would add to this year’s red ink. Without taking into account further relief measures, the Congressional Budget Office has forecast that this year’s deficit will total $1.8 trillion and will remain above $1 trillion each year through 2030.
Before last year’s $3.1 trillion deficit, the record-holder was a $1.4 trillion shortfall in 2009, when the government was fighting to lift the country out of a deep recession caused by the 2008 financial crisis.
The federal government’s November deficit totaled $145.3 billion.
Please enable JavaScript to view this content.
As long as the stock market is up, who cares? Right?
After skyrocketing for the last 4 years without a peep from the GOP it will now become their number one issue and problem for the country again on January 20 and last until another Republican is President when their skyrocketing deficits will miraculously cease being a problem allover again.
All spending bills originate in the House of Representatives. Nothing better than never doing a budget but authorize continuing resolutions. 1997 was the last time Congress passed a budget prior to the end of the fiscal year, September 30th. This is a DC problem, with continuing resolutions they can fill there pockets with a budget so one would be held accountable. CR’s is how we get bridges to no where and cow flatulent global warming studies. For ever 2 trillion they print out of thin air every man, women and child owes $ 6,700.00. For 2020 and the 2.5 trillion stimulus bill every man, women and child owes $8,300.00.
really Stephen? that does not dictate the direction of our economy.