US Budget Gap Tripled to Record $3.1 Trillion in Fiscal 2020, Treasury Says

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

A surge of federal spending to combat the coronavirus and cushion the U.S. economy, coupled with a drop-off in federal revenue amid widespread shutdowns and layoffs, contributed to the widening deficit.

As a share of economic output, the budget gap in fiscal year 2020 hit roughly 16.1%, the largest...

U.S. federal debt is projected to exceed 100% of U.S. gross domestic product in the 2021 fiscal year.

WSJ’s Gerald F. Seib highlights three reasons why the U.S. is headed toward a milestone not seen since World War II.

Photo: Stefani Reynolds/Bloomberg News (Originally published Sept. 2, 2020)

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