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Anonymous ID: dcaaa1 Sept. 2, 2020, 4:57 p.m. No.10508947   🗄️.is đź”—kun

U.S. budget deficit tripling to US$3.3T this year: CBO

 

The U.S. federal budget deficit will soar to a record US$3.3 trillion this fiscal year in the wake of massive government spending aimed at mitigating the economic damage from the coronavirus pandemic, according to the Congressional Budget Office’s latest tally.

 

Even so, the shortfall is smaller than the non-partisan agency’s April projection of US$3.7 trillion. In 2019, the gap was US$984 billion. The updated budget estimate, issued Wednesday and which incorporates legislation enacted through Aug. 4, also showed the U.S. deficit will total US$1.8 trillion in fiscal 2021.

 

The projected deficit for this year would equate to 16 per cent of gross domestic product, up from 4.6 per cent in 2019 and the largest since World War II. U.S. government outlays this fiscal year will jump to US$6.6 trillion, the CBO estimated as lawmakers scrambled to put in place fiscal backstops to preserve jobs and companies after state-ordered shutdowns of non-essential businesses. The resulting economic recession is also being reflected on the other side of the nation’s fiscal ledger. Revenue is projected to fall to US$3.3 trillion this year from almost US$3.5 trillion in 2019.

 

A rapidly expanding government deficit means more U.S. borrowing, and the CBO projects debt held by the public will increase to US$33.5 trillion at the end of 2030, or 109 per cent of GDP. It will exceed GDP starting in the next fiscal year.

https://www.bnnbloomberg.ca/u-s-budget-deficit-tripling-to-us-3-3t-this-year-cbo-1.1488594