The report indicated that the deficit for the first 11 months of this budget year is 9.9% lower than during the same period last year.
The budget year ends on September 30, and the Congressional Budget Office forecast a deficit of $ 3 trillion, which would be just below the record deficit of $ 3.13 trillion recorded last year.
Last year’s deficit was more than double the previous record of $ 1.4 trillion set in 2009 during the Obama administration, when the government was spending heavily to combat the deep recession after the 2008 financial crisis.
During these 11 months of this budget year, government revenues totaled US $ 3.39 trillion, and that marks an increase of 17.7% over last year, driven by the economic rebound after the recession and that allowed millions of people going back to work.
Government spending rose to $ 6.21 trillion. Disbursements from both this year and the past reflect the trillions of dollars spent to prevent the economy from slipping into a prolonged recession by providing individual support payments, improved unemployment benefits, and billions of dollars in non-repayable, small business loans. .
The fiscal deficit, in August, totaled US $ 170.6 billion, 14.7% less than in August 2020, when the deficit reached US $ 200 billion.
The Secretary of the Treasury, Janet Yellen, is asking Congress to extend the limits of indebtedness for the government since it will run out of room for maneuver to be able to continue fulfilling its obligations for the first time in history.
In a letter to Capitol leaders last week, Yellen said he hopes to exhaust next month the available “extraordinary measures” that are used to prevent the United States from reaching the government’s borrowing limit.
The measures primarily involve draining the pension funds of federal employees to make room for more loans until Congress raises the current $ 2.84 trillion limit or lifts the limit.
The need to extend the debt limit is closely related to three other pending issues: the need to pass a pension financing bill once the new budget year begins on October 1, and two draft bills of massive infrastructure.