In the fiscal year 2020, it reached $3 trillion, the Ministry of Finance of the country reported.
In the fiscal year 2020 (ended September 30), the US budget deficit increased more than three times compared to last year’s figure and amounted to $3.1 trillion. This is stated in a report released on Friday by the US Treasury Department.
According to the Finance Department, government spending increased by 47%, to a record $6.5 trillion over the past fiscal year, when the government launched a large-scale program to combat the effects of the spread of coronavirus in the country, which led to a recession. The authorities allocated funds for emergency loans for small businesses and increased unemployment benefits and incentive payments for Americans. Rising Federal spending to fight the coronavirus and boost the US economy, combined with falling Federal revenue amid strict quarantine measures and layoffs, have contributed to the widening deficit. As a percentage of GDP, the fiscal year 2020 budget deficit reached approximately 16.1%, the largest since 1945, when the government allocated budget funds for large-scale military operations.
Federal revenue totaled $3.4 trillion, down 1% from the previous year, with most of the cuts starting back in March when the coronavirus began spreading across the country. Federal debt rose 25% over the year, to $21 trillion at the end of September, from $16.8 trillion at the beginning of the fiscal year 2020, which, according to various estimates, exceeded US GDP for the first time in more than 70 years. In the fiscal year 2019, the budget deficit was $984 billion.
Thus, the Ministry of Finance confirmed almost all the indicators on the country’s budget for the last fiscal year, published in early September by the congressional budget office.