WASHINGTON (AP) – The U.S. government deficit for the first three months of the budget year was a record $ 572.9 billion, 60.7% higher than the same period last year, as spending to cope with the COVID-19 pandemic increased while revenue increased declined.
The Treasury Department reported Wednesday that three months into the budget year, the deficit was $ 216.3 billion higher than in the same period October-December of the previous year.
The deficit reflects an 18.3% jump in spending to $ 1.38 trillion, a record for the period, while revenue fell 0.4% to $ 803.37 million. Red ink results from the difference between revenue collection and expenses.
In December alone, the deficit hit a record $ 143.6 billion.
The deficit for the 2020 budget year, which ended Sept. 30, reached an all-time high of $ 3.1 trillion. Beginning in the spring, Congress passed spending measures worth more than $ 1 trillion to combat the damage done to the economy due to a recession induced by a pandemic.
The recession, which has led to the loss of jobs to millions of Americans, has also led to a drop in tax revenue at a time when demand for government support programs, such as unemployment benefits and stamps, has risen. of food.
The report showed December spending was $ 489.7 billion, while revenue was $ 346.1 billion.
The spending figure did not include the $ 900 billion assistance package that Congress finally approved after months of fighting, because it was not signed into law until the end of the month. President Donald Trump delayed the signing of the bill, which he described as “unfortunate,” because it only included $ 600 in direct payments to individuals.
President-elect Joe Biden has approved raising direct payments by $ 1,400 more. He has said a higher amount will be included in another round of relief payments he will ask Congress to approve once he takes office on Jan. 20.
In addition to direct payments, the December relief bill expanded two special unemployment benefit programs designed to cushion the pandemic’s impact. Unemployment benefits have been $ 80 billion from October to December, up from $ 5 billion in the same period last budget year.
The Congressional Budget Office has predicted that this year’s deficit will amount to $ 1.8 trillion and the deficit will remain above $ 1 trillion each year until 2030. The OBC’s forecast for this year was made before the December relief package was approved and also does not take into account additional expenses that Congress may approve after Biden takes office.
Nancy Vanden Houten, a senior economist at Oxford Economics, predicted that this year’s deficit will reach at least $ 2.6 trillion, an estimate that means stimulus controls will increase to a total of $ 2,000.