The report indicated that the deficit in the first eleven months of the current budget year is 9.9% lower than the same period last year.
The budget year ends on September 30th and The Congressional Budget Office projects 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 a deep recession after the 2008 financial crisis.
During these 11 months of this budget year, government revenue totaled $3.39 trillion, a 17.7% increase over last year, driven by the post-recession economic recovery that allowed millions of people to return to work.
Government spending rose to $6.21 trillion. The payments from both this year and last reflect the trillions of dollars that were spent to prevent the economy from slipping into a prolonged recession by providing individual support payments, improving unemployment benefits, and billions of dollars in non-repayable small business loans.
The fiscal deficit in August was $170.6 billion, down 14.7% from August 2020, when the deficit was $200 billion.
Chancellor of the Exchequer , Janet Yellen, He is asking Congress to extend the government’s debt limits because it will run out of room to maneuver to be able to continue meeting its obligations for the first time in history.
In a letter to Capitol leaders last week, Yellen said he hopes next month will exhaust the available “extraordinary measures” used to prevent the United States from reaching the government’s borrowing limit.
The measures essentially involve draining federal employee pension funds to make room for more loans until Congress raises the current $2.84 trillion limit or raises the limit.
The need to extend the debt limit is closely linked to three other outstanding issues: the need to approve a pension financing bill as soon as the new budget year begins on October 1, and two massive infrastructure bills.
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