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

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Silver47 Hits 640 g/t Silver Equivalent Over 6.9 Metres At Red Mountain

Steadright Secures Two Additional Exploration Licenses For Flagship Project

Related News

Republicans Reveal Details of $1 Trillion Second Coronavirus Relief Package, Americans Slated to Receive Another $1,200 Payment

After various struggles that delayed the the unveiling of the much anticipated second coronavirus relief...

Monday, July 27, 2020, 02:58:32 PM

Biden Administration Takes Aim at Tax Loopholes Used by the Country’s Wealthiest 0.1%

Some of America’s wealthiest were in for a surprise last month, after a 114-page document...

Tuesday, June 29, 2021, 05:24:00 PM

Biden’s Covid-19 Plan Calls for $1,400 Stimulus Checks, $15 Minimum Wage

With a new Biden administration soon to take office, it appears that more government spending...

Friday, January 15, 2021, 10:45:00 AM

US Economy Rebounds 6.4% Amid Surge in Consumer Spending

The US economy gained even more momentum in the first quarter of 2021, as unprecedented...

Friday, April 30, 2021, 10:20:00 AM

US Payrolls Miss Threatens to Derail Fed’s ‘Substantial Further Progress’ Benchmark for Employment

The US labour market slowed down considerably in September, as businesses continued struggling to fill...

Saturday, October 9, 2021, 03:43:00 PM