The United States‘ budget deficit reached a record level in 2020 to exceed $ 3 trillion, as a result of spending by the federal government in the face of the unprecedented economic crisis caused by Covid-19.
The federal state deficit for the fiscal year 2020 ended in September reached 3.132 billion dollars, against 984 billion in 2019, according to data released Friday by the US Treasury. The increase in spending, but also the fall in revenue, especially in taxes collected, pushed the budget deficit up by 218% compared to 2019. This is the largest deficit ever recorded by the United States, more than double the previous record, recorded in 2009, when, in the midst of a recession linked to the financial crisis, it had climbed to 1.4 trillion dollars.
Receipts were $ 3.420 billion, less than expected. Indeed, the sudden stop of economic activity from March in an attempt to stop the spread of Covid-19 caused the income of households and businesses to fall, which therefore paid less taxes than expected to the federal state.
But the deficit is mainly due to the explosion of public spending, which has “significantly increased“, Underlines the Treasury in its press release. They jumped 47%, to reach 6.5 trillion dollars. Direct check to the Americans, additional aid for the unemployed, extension of unemployment rights to the self-employed in particular, loans to small and medium-sized businesses …: the recovery plan adopted at the end of March by the White House and Congress provided for $ 2.2 trillion aid measures for Americans and businesses in particular. It had been extended by 500 billion in April.