US budget deficit nearly tripled due to pandemic

US budget deficit nearly tripled due to pandemic

Due to the pandemic, US budget expenditures grew 2.6 times, and revenues collapsed by 55%.
In April, the US budget deficit amounted to $ 737.851 billion, while a surplus of $ 160.304 billion was recorded a year earlier, the country’s Treasury reported. Budget revenues fell 55% last month to $ 241.863 billion from $ 535.545 billion a year earlier. The Finance Ministry explained that this is due to the fact that a number of tax payments for both companies and individuals were transferred from April 15 to mid-July.

At the same time, expenses skyrocketed 2.6 times due to the introduction of various financial assistance programs and other support measures against the backdrop of the COVID-19 coronavirus pandemic. As a result, budget expenditures reached a record of $ 979.714 billion, compared with $ 375.240 billion in April 2019.

In general, since the beginning of the fiscal year (October 1), the negative balance of the US budget increased by 2.8 times and exceeded $ 1.481 trillion. Revenue fell by 9.7% to $ 1.845 trillion. Costs jumped 29.3% to almost $ 3.327 trillion.

Note that the US state budget deficit is growing for the fourth year in a row – this is the longest period of continuous growth since the beginning of the 1980s. According to the results of the last fiscal year, which ended on September 30, 2019, it increased by 26%, reaching the maximum level of $ 984.388 billion over the past seven years. It rose to 4.6% of GDP against 3.8% of GDP in the previous year.

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The last time a budget surplus was recorded in the United States in 2001.

As reported, the US national debt reached a record $ 24.5 trillion. At the same time, due to measures to combat the consequences of the pandemic, from the beginning of the year, the US public debt grew by $ 1.5 trillion.