UNITED STATES, WASHINGTON (EDUFINTECH) – The US budget deficit in June fell by 80%, or 5 times, to $ 174.161 billion, compared with a record $ 864.074 billion in the same month last year, the country’s finance ministry said. Budget revenues increased by 86.5% last month – to $ 449.199 billion from $ 240.829 billion a year earlier.
Costs fell 44% to $ 623.359 billion versus $ 1.105 trillion in June last year, which saw the peak in costs associated with the COVID-19 pandemic.
For the nine months of 2021 fiscal year, which began on October 1, the negative balance of the US budget decreased by 18.5% compared to the same period a year earlier and amounted to $ 2.238 trillion.
The volume of budget revenues since the beginning of the current fiscal year jumped by 35.2% – to $ 3.056 trillion, including due to the increase in taxes on income of individuals and companies.
Meanwhile, expenses increased by 5.8% and exceeded $ 5.294 trillion. This includes a significant jump in costs in the agricultural sector – by 35%.
The Congressional Budget Office (CBO) in early July presented an updated forecast, according to which in 2021 fiscal years the country’s budget deficit could be $ 3 trillion (or 13.4% of GDP).
The negative balance of the US state budget at the end of the 2020 fiscal year, which ended on September 30, grew 3.2 times and amounted to a record $ 3.132 trillion. At the same time, the deficit rose to 14.9% of GDP, which is the maximum since 1945. For comparison: during the financial crisis in 2009, it was equal to $ 1.413 trillion, or 9.8% of GDP.
The negative US budget surplus peaked at 27% of GDP in 1943, and then remained above 20% of GDP in 1943-1945.
The last time a budget surplus was recorded in the United States was in 2001.