By MARTIN CRUTSINGER, AP Economics Author
WASHINGTON (AP) — The federal price range deficit hit an all-time excessive of $3.1 trillion within the 2020 price range yr, greater than double the earlier report, because the coronavirus pandemic shrank revenues and despatched spending hovering.
The Trump administration reported Friday that the deficit for the price range yr that ended on Sept. 30 was 3 times the scale of final yr’s deficit of $984 billion. It was additionally $2 trillion larger than the administration had estimated in February, earlier than the pandemic hit.
It was the federal government’s largest annual deficit in greenback phrases, surpassing the earlier report of $1.four trillion set in 2009. At the moment the Obama administration was spending closely to shore up the nation’s banking system and restrict the financial harm from the 2008 monetary disaster.
The administration’s ultimate accounting of the 2020 price range yr exhibits that revenues fell by 1.2% to $3.42 trillion, whereas authorities spending surged 47.3% to $6.55 trillion. That spending displays all the reduction packages Congress handed within the spring to shore up the financial system as thousands and thousands of Individuals had been shedding their jobs.
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