U.S. Budget Deficit Skyrockets as COVID-19 Still Rages

The U.S. government noted that March budget was a deficit of $660 billion, a record high for the month, as direct payments to Americans under President Joe Biden’s stimulus package were distributed, the Treasury Department said on Monday, Black Enterprise reported.

The deficit for the first six months of the 2021 fiscal year grew to a record $1.706 trillion, compared to “a $743 billion deficit for the comparable year-earlier period,” according to the article.

The COVID-19 pandemic did not have a major impact on the first six months of fiscal 2020, as other reasons related to escalating unemployment due to pandemic-related lockdowns and new aid spending did not start until the tail end of March 2020 and kicked up a notch in the following month, a Treasury official told reporters.

“The March 2021 deficit was the third-highest U.S. monthly deficit on record, surpassed by gaps of $864 billion in June 2020 and $738 billion in April 2020,” according to the article.

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