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WASHINGTON (AP) – The U.S. government deficit in the first three months of the budget year hit a record $ 572.9 billion, 60.7% higher than in the same period a year, as expenses to deal with the COVID-19 pandemic have increased while incomes have declined.
The Treasury Department reported on Wednesday that three months after the start of the fiscal year, the deficit was $ 216.3 billion higher than the same October-December period a year ago.
The deficit reflects an 18.3% jump in spending to $ 1.38 trillion, a record for the period, while revenues fell 0.4% to $ 803.37 billion. Red ink results from the difference between income and expense.
In December alone, the deficit totaled a record $ 143.6 billion.
The shortfall for the 2020 budget year, which ended on September 30, hit a record high of $ 3.1 trillion. Starting in the spring, Congress passed more than $ 1 trillion in spending measures to combat damage to the economy from a pandemic-induced downturn.
The recession, which has seen millions of Americans lose their jobs, has also resulted in declining tax revenues at a time when demand on government support programs such as unemployment benefits and food stamps has increased.
The report showed spending in December was a record $ 489.7 billion, while revenue was $ 346.1 billion.
The spending figure did not include the $ 900 billion relief package that Congress finally passed after months of wrangling because it was not enacted until the end of the month. President Donald Trump has delayed signing the bill, which he called “shame” because it only included $ 600 in direct payments to individuals.
President-elect Joe Biden has approved the increase in out-of-pocket payments by an additional $ 1,400. He said a higher amount would be included in another round of relief payments that he will ask Congress to approve once he takes office on January 20.
In addition to direct payments, the December relief bill extended two special unemployment benefit programs aimed at cushioning the blow from the pandemic. Unemployment benefits totaled $ 80 billion from October to December, up from $ 5 billion in the same period last fiscal year.
The Congressional Budget Office has forecast that this year’s deficit will reach $ 1.8 trillion and that the deficit will remain above $ 1 trillion each year until 2030. The CBO’s forecast for this year was made before the adoption of the December back-up plan and no additional spending that Congress could spend after Biden takes office.
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