US budget deficit jumps to record $1.7 trillion this year

WASHINGTON (AP) – The US government’s budget deficit widened to a high of $ 1.7 trillion for the first six months of this budget year, nearly double the previous record, as billions of dollars were spent in another round of economic-aid scrutiny. Happened. last month.

In its monthly budget report, the Treasury Department said on Monday that the deficit for the first half of the budget year – from October to March – was down from $ 743.5 billion for the same period a year earlier.

Since the epidemic hit in early March 2020, Congress has recovered from trillions of dollars to billions of dollars.

Biden’s package included personal support payments of up to $ 1,400 and the administration raced to make those payments as soon as Biden signed the measure into law. Treasury statements showed that payments totaled $ 339 billion in March.

The budget report showed that the deficit for March totaled $ 659.6 billion, the third-largest monthly deficit. For the six-month period, the $ 1.7 trillion deficit surpassed the previous record of $ 829 billion in losses for the six-month expiry in March 2011, a period the government was spending to deal with the adverse effects of the recession . 2008 financial crisis.

Last year’s deficit, for the budget year that ended on September 30, totaled a record $ 3.1 trillion. The Congressional Budget Office estimated in February that this year’s deficit would total $ 2.3 trillion. But that estimate did not include the cost of Biden’s $ 1.9 trillion rescue plan that Congress passed in March or the impact of Biden’s “build back better” infrastructure proposal that Congress is now considering.

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