/ world today news/ The US Department of Finance reported the second largest budget deficit in US history, amounting to $2.8 trillion, writes The Hill. However, the deficit turned out to be much smaller than projected, as the federal government received much more money in the last fiscal year than it had expected due to the success of the economic recovery.
The U.S. Treasury Department reported that the federal budget deficit reached $2.8 trillion in fiscal year 2021. At the same time, this deficit became the second largest in the history of the United States, writes The Hill.
However, this figure is $360 billion less than the record the US set in the previous tax year.
In particular, the budget deficit jumped to a record $3.1 trillion last year as the country’s economy was hit hard by the COVID-19 pandemic, when huge numbers of businesses across the country were forced to go into temporary lockdown.
However, this figure is more than double the record set in 2009, when during the Great Recession the budget deficit was $1.4 trillion.
In a joint statement, the Treasury Department and the White House’s administration and budget reported the budget deficit for fiscal year 2021 (Oct. 1-Sept. 30), which came in $897 billion short of the projected $3.7 trillion.
At the same time, the new budget report said that government revenue in the 2021 tax year will amount to $4 trillion, which is 18.3% more than the previous year, thus exceeding previous forecasts. This growth is due to “increasing the volume of taxes on the net incomes of individuals and corporations against the background of the improving situation in the economy”.
US Treasury Secretary Janet Yellen quoted the budget report as “proof that the US economy is recovering“.
„The country’s economic success is a direct consequence of the Biden-Harris administration’s efforts to implement the “save America plan” and fight the pandemic“, she said.
Translation: ES
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