Muscat Daily

US bud­get deficit hits record $3.1tn

- Business · Finance · Taxes · U.S. News · Politics · Infectious Diseases · Financial Crisis · World Finances · Health Conditions · Washington · U.S. Treasury · Donald Trump

Wash­ing­ton, US – The US bud­get deficit surged 218 per cent to a record US$3.1tn in the fis­cal year ended Septem­ber 30 due to a mas­sive in­crease in spend­ing to help the econ­omy weather the coro­n­avirus pan­demic, the gov­ern­ment an­nounced.

That was more than dou­ble the pre­vi­ous record deficit of US$1.4tn hit in 2009 dur­ing the global fi­nan­cial cri­sis.

As spend­ing ramped up and tax re­ceipts fell due to the wide­spread busi­ness shut­downs, the Trea­sury De­part­ment said to­tal gov­ern­ment US debt soared to US$26.9tn – larger than the size of the econ­omy which shrunk in the sec­ond quar­ter to less than US$20tn. The bud­get gap un­der Pres­i­dent Don­ald Trump al­ready had been on the rise prior to the pan­demic and hit US$1tn this year for the first time since 2012 fol­low­ing the mas­sive tax cut passed in late 2017.

Ad­min­is­tra­tion of­fi­cials tried to put a pos­i­tive spin on the fig­ures, cred­it­ing Trump with act­ing quickly to de­ploy re­sources to ease the eco­nomic dam­age for Amer­i­can busi­nesses and fam­i­lies.

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