The U.S. budget deficit reported $3 trillion in fiscal year 2020.
The federal budget deficit for 2020 was $3.1 trillion, the Congressional Budget Office reported on Thursday. The debt is a US record of overall dollars that is a direct product of the federal response to the coronavirus pandemic.
Driving the borrowing jump was a decline in tax receipts as the economy contracted this spring in the middle of the pandemic recession and a boom in government spending to stimulate growth, including expanded welfare for unemployed people and extensive assistance to large and small businesses.
Federal spending from April to the end of September was $4.2 trillion, almost double in 2019, the budget office announced. Person and corporate income tax collections dropped by $191 billion, or around 17%, in April through September relative to the previous year.
The 2020 fiscal year ended in September. Treasury Department will issue official deficit estimates later this month. Budget office forecasts are based on the department's daily figures.
Jim Tankersley 's economic and tax policy. For more than a decade in Washington reporting politics and economics, he has written widely on American middle class stagnation and diminishing economic opportunities.