The US Treasury’s 2021 fiscal year deficit is below the previous year’s record, the Treasury says.

File Photo: On February 4, 2014, you can see the Wall Street sign outside the New York Stock Exchange door in New York’s financial district. REUTERS / Brendan McDermid / File Photo

October 22, 2021

(Reuters)-The U.S. budget deficit in 2021 was below the record shortage of the previous year, but reflects the second consecutive year of huge spending to support families and businesses through the coronavirus pandemic. Said on Friday.

The United States posted a $ 3.132 trillion deficit in 2020, when the federal government first desperately began spending in response to a pandemic. The $ 360 billion decrease in the deficit reflects the recovery in economic activity this year as the deployment of the COVID-19 vaccine and household bailouts helped a strong recovery from last year’s recession. I am.

“Today’s joint budget statement is further evidence that the US economy is in the midst of a recovery,” Treasury Secretary Janet Yellen said with Shalanda Young, Deputy Head of the Office of Management and Budget. Said in the statement.

The US economy is on track to grow by as much as 6% this year, driven by emergency measures enacted under Democratic President Joe Biden and his predecessor, Republican Donald Trump. With the launch of a vaccine against COVID-19 at the end of last year and the end of the blockade later this year, the federal program has unleashed the wave of consumer spending that is driving the fastest growth since the 1980s.

Full-year revenues from October 1st to September 30th totaled $ 4.46 trillion, an increase of $ 626 billion, or 18.3%, from 2020, with higher personal and business tax increases due to economic improvements. I boosted it. , The Treasury said.

According to the ministry, spending in 2021 increased by $ 266 billion (4.1%) to $ 6.818 trillion, driven by continued spending from legislation enacted to support the economy through a pandemic. ..

According to the Treasury, the US budget deficit in September, the last month of the government’s fiscal year, was $ 62 billion, about half of the $ 125 billion gap in September 2020. This is the smallest monthly deficit ever recorded during a pandemic, the lowest since January 2020.

Last month’s receipts totaled $ 460 billion, up 23% from $ 373 billion the previous year. September spending was $ 521 billion, up 5% from last year’s $ 489 billion.

The annual deficit reflects toll inflation giving US taxpayers.

US debt repayment costs increased by $ 40 billion in 2021 due to increased inflation compensation spending on the Treasury’s Inflation Protection Securities (TIPS). With annual inflation measured by the CPI over 5% for several months, the Treasury is $ 113 billion more than it paid in 2020 to compensate TIPS investors.

(Report by Dan Burns; edited by Paul Simao)

The US Treasury’s 2021 fiscal year deficit is below the previous year’s record, the Treasury says.

Source link The US Treasury’s 2021 fiscal year deficit is below the previous year’s record, the Treasury says.

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