The US Treasury Department said on Friday that the budget deficit reached $3.132 trillion during the fiscal year 2020, more than three times of the 2019 estimates, as a result of massive spending on the stimulus packages, and unemployment compensation.
The US government had expected to run a $1 trillion budget deficit for the FY 2020 ahead of the great lockdown, which began in March.
The Treasury added that the US deficit in September, the last month of the fiscal year, was $125 billion, compared to a surplus of $83 billion, year-on-year.
In September, higher Federal Reserve earnings and selective tax collection offset lower personal and corporate income tax revenues to $373 billion, $1 billion less than Sep. 2019.
Also, spending increased by $206 billion to $498 billion in the same month.
Moreover, total revenue for FY 2020 recorded $3.42 billion, down 1% from the previous year's estimates.
Expenditures also jumped $2.105 trillion from 2019 to a total of $ 6.55 trillion, with the increase Medical care, unemployment compensation, and bailout programs.
The huge gap between how much the feds spend and the revenue it gets underscores the massive legislative response that Congress has taken to tackle the pandemic, which experts see essential to pull millions of people out of poverty and drive economic recovery.
Analysts argue that more fiscal stimulus is urgently needed, yet, prospects for another package before election day are bleak.
It is noteworthy that the U.S. deficit doubled from the previous record of $1.416 trillion during the 2008-2009 global financial crisis.
Follow the latest news on Google News
