In the first two months of the fiscal year 2021 (started on October 1), the US budget deficit increased by 25.1%, the US Treasury Department reported.
The increase in this indicator is due to increased costs due to the spread of the new coronavirus. According to a report published in October by the Ministry of Finance, the budget deficit in the fiscal year 2020 (ended September 30) increased more than three times compared to the previous reporting period. It amounted to $ 3.1 trillion (against 984 million in the fiscal year 2019).
Government spending rose 47% to a record $ 6.5 trillion as the government rolled out a massive program to deal with the coronavirus pandemic’s effects that led to the recession. The authorities allocated funds for emergency loans for small businesses and increased unemployment benefits and incentive payments for Americans.