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Deficit exceeds $ 2 trillion in first 8 months of fiscal year, says Treasury

The United States hit a record deficit of nearly $ 2.1 trillion for the first eight months of the fiscal year, according to monthly data released by the Treasury Department on Thursday. The country also recorded record spending of over $ 4.6 trillion in fiscal 2021, up 20 percent from the previous year.

The country also brought in a record amount of liquidity for the period: more than $ 2.6 trillion for the fiscal year to date, up 29% from 2020. Last month alone, the United States reported $ 464 billion, according to data, $ 290. billion dollars more than in May 2020 and spent a record $ 596 billion, up 4% from May 2020.

A senior Treasury official noted that the large rise in revenue can mainly be attributed to delayed personal and corporate tax deadlines, which were postponed last year during the height of the coronavirus pandemic.

Some of the biggest increases in spending in a year, including within the Ministry of Agriculture, Treasury and Small business management, had to do with the administration of pandemic relief. The release of state and local aid within the framework of the American rescue plan last month played a pivotal role in increasing Treasury Department spending in May, according to a senior treasury official.

Spending was also spent on unemployment benefits, stimulus payments and the paycheck protection program in the first eight months of the fiscal year, which also contributed to the deficit in the first eight months of the year. ‘exercise.

The new data comes as the country seeks to rid itself of the economic effects of the coronavirus pandemic, which increases consumer prices by 5% over the past year, according to new data from the Ministry of Labor, thanks to the increase in the price of used cars and trucks and of energy. Consumer spending rose 0.6% in May as the country reopens.


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