Business

US Budget Deficit Widened to $1 Trillion From October Through February


WASHINGTON—The federal budget gap widened 68% in the first five months of the fiscal year, as government spending continued to outpace revenue collection while the country slowly recovers from the coronavirus pandemic .


The U.S. ran a $1 trillion deficit from October through February, compared with $624 billion during the same period a year earlier, the Treasury Department said Wednesday.


Higher costs for unemployment benefits, nutrition assistance and healthcare pushed government spending higher, while stronger corporate tax collection and remittances from the Federal Reserve lifted government revenues, the Treasury said.


For the 12 months that ended in February, the deficit totaled $3.5 trillion, or 16.5% as a share of economic output.


Deficits have soared since the start of the pandemic, as businesses across the country shut down and laid off millions of workers, and the government ramped up spending to cushion the economy and combat the coronavirus.


The Treasury Department said stronger corporate tax collection and remittances from the Federal Reserve lifted government revenues in the beginning of the current fiscal year.






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