US budget deficit this year nearly doubles previous record | Business and Economy News

The U.S. federal budget deficit soared to $ 1.7 trillion in the first six months of fiscal year as additional stimulus spending increased government spending by billions of dollars last month.

The U.S. government’s budget deficit soared to an all-time high of $ 1.7 trillion in the first six months of this fiscal year, almost double the previous record, as another round of economic support reviews increased spending by $ billion last month. Dollar increased.

In its monthly budget report, the U.S. Treasury Department said Monday that the deficit for the first half of the fiscal year – October through March – rose from a deficit of $ 743.5 billion in the same period a year ago.

The deficit was increased by trillions of dollars in support passed by Congress in successive economic bailout packages since the coronavirus pandemic in early March 2020. The final round came in a $ 1.9 trillion measure that President Joe Biden pushed through Congress last month.

Biden’s package included individual support payments of up to $ 1,400, and the administration rushed to make those payments once Biden legally signed the measure. The Treasury Department’s statement found that payments totaled $ 339 billion in March.

The budget report showed that the deficit was only $ 659.6 billion in March, the third highest monthly deficit. During the six month period, the deficit of $ 1.7 trillion surpassed the previous record of $ 829 billion in the six months ended March 2011. During this time, the government spent to deal with the adverse effects of the recession caused by the 2008 financial crisis.

Last year’s deficit for the fiscal year ended September 30 was a record $ 3.1 trillion. The Congressional Budget Office estimated this year’s deficit at $ 2.3 trillion in February. That estimate didn’t include the cost of Biden’s $ 1.9 trillion bailout plan passed by Congress in March or the impact of Biden’s proposal for better infrastructure that Congress is currently considering.