US budget deficit - at $3.1 trillion - doubles previous record

U.S. Budget Gap Triples to Record $3.1 Trillion on Virus Relief

U.S. Budget Gap Triples to Record $3.1 Trillion on Virus Relief

The U.S. deficit tripled to a record $3.1 trillion in the fiscal year that ended September 30, as the government battled a global pandemic that plunged the U.S. into a recession in February, the Treasury Department said Friday.

The Treasury said the budget deficit in September, the last month of the fiscal year, was $ 125 billion, compared to a $ 83 billion surplus in September 2019.

Also Read | Boris Johnson Threatens to Impose Restrictions on Manchester. Trump spearheaded a Republican effort to approve $2 trillion in tax cuts in 2017, and also worked with Congress to approve large spending increases in 2018.

USA government bonds were little changed Friday, with the yield on the benchmark 10-year Treasury note ticking up to 0.743% from 0.730% Thursday, according to Tradeweb.

Following the 2008 global financial crisis and economic downturn, there were fierce budget battles to reduce the size of the deficit between the Obama White House and conservatives in Congress.

According to the Associated Press, the 2020 deficit represented 15.2% of the total GDP, the highest level since 1945, when the United State borrowed huge sums to fight World War II. All of the spending increases he has authorized since taking office have been financed by USA government funds.

While lawmakers and the administration agree on the need for a bill, they remain far apart on the size.

FCA, Unifor Reach Agreement on New Deal, Averting Strike
The Brampton assembly plant would also see Can$50 million in investment, which woud allow additional models to be produced there. Unifor is then expected to begin negotiations with General Motors' Canadian division next week.

While about half of the 22 million jobs lost in March and April have been recovered, the concern is that without more government support, those still without work will be unable to make their rent or mortgage payments and buy food. Trump also said faster economic growth would erase the US debt burden, although budget experts say spending cuts or tax hikes would be necessary to do so.

"Under President Trump's leadership, the economy has begun an incredible comeback", Treasury Secretary Steven Mnuchin and White House budget chief Russell Vought said in a joint statement.

For the year, the Treasury took in $3.4 trillion - $286 billion less than had been projected - but spent $6.55 trillion, almost $1.3 trillion going for income security - cash and in-kind benefits to make sure people's basic needs are met including disability payments and unemployment compensation. Advertisement Receipts reached $3.4 trillion, reflecting a drop in tax income from the year-ago period as Americans struggled through the once-in-a-century pandemic.

The government traditionally runs a deficit and finances it by issuing debt - now relatively cheap given low interest rates. Interest rates are low, which has made it relatively affordable to issue debt.

The low interest rates are a key reason economists are not as concerned about the rising debt burden caused by the deficit.

The total amount of federal government debt held by the public rose to $21 trillion, a 25 percent jump since the beginning of the year.

"It's disappointing to both candidates for president proposing trillions of dollars in additional debt", said Maya MacGuineas, president of the Committee for a Responsible Federal Budget. "The deeper we dig this hole, the harder it will be to claw our way out".

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