America’s Budget Deficit Soars to Record $1.7 Trillion

Although the Covid-19 pandemic is beginning to show signs of tapering off across the US (especially with the strong vaccine rollout), government stimulus spending looks like it is staying for good.

On Monday, the US Treasury published its latest monthly budget report for March, which showed the budget deficit swelled to $660 billion— up by nearly five-fold compared to the $119 billion documented in March 2020. The increase was primarily driven by a surge in government outlays, which rose from $355.7 billion a year ago to $927 billion— the third highest in history.

The jump in government spending is due to the latest stimulus checks that were distributed to households last month, following the signing of the $339 billion American Rescue Plan, which also included $87 billion in Payroll Protection Program loan forgiveness. Overall, the Biden administration spent approximately $453 billion on income security, followed by $94 billion on social security, $81 billion on Commerce and Housing Credit, and $71 billion on Health.

However, when compared to year-ago levels, the government has spent significantly more than it has brought in. For the fiscal year, the federal government spent $3.41 trillion— exactly 100% more than its incoming revenues. The six-month total puts the US budget deficit at $1.706 trillion, the highest on record.

Although it is feasible that the government will cut back on its spending now that the economic recovery is underway and American households have received the final round of stimulus checks, the probability that spending could increase if Biden’s infrastructure plans materialize in the coming months is just as high.


Information for this briefing was found via the US Department of the Treasury. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Avino Q2 Earnings: Steady As She Goes

MEG Energy: Cenovus Comes In With $7.9 BILLION Offer

Orla Mining Q2 Earnings: Musselwhite Changes Everything

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Global Trade on Edge as Trump Targets BRICS With Tariff Threats

In a move reminiscent of his first term, U.S. President-elect Donald Trump has issued a...

Monday, December 2, 2024, 12:22:31 PM

U.S.-EU Agree to Remove Trump Imposed Tariffs on EU Steel and Aluminum Manufacturers

On October 30, the U.S. and European Union (EU) reached an agreement to remove tariffs...

Monday, November 1, 2021, 03:44:00 PM

Government Transfer Payments Sent US Personal Incomes Soaring to New Record

US Household incomes soared by the most on records dating back to 1946, as an...

Wednesday, May 5, 2021, 04:44:00 PM

BREAKING: Sam Bankman-Fried Reportedly Arrested By Bahamas Authorities

It is currently being reported that Sam Bankman-Fried, the founder and former CEO of cryptocurrency...

Monday, December 12, 2022, 06:48:27 PM

Trump Signs $2.3 Trillion Covid-19 Stimulus and Spending Bill on Hopes Congress Votes to Increase Payouts to $2,000

Following months of deadlock between US lawmakers, a second Covid-19 stimulus bill was finally agreed...

Tuesday, December 29, 2020, 10:38:00 AM