WASHINGTON (NWN) – The US budget deficit for 2021 totaled $2.77 trillion, the second-highest on record, but improved from an all-time high of $3.13 trillion in 2020. Deficits in both years represent to counteract trillions of dollars in government spending. The devastating effects of a global pandemic.
The Biden administration said on Friday that the 2021 deficit for the budget year ending Sept. 30 was $360 billion lower than 2020, as revenues increased as the economy improved, reducing government spending from pandemic relief efforts. Offset helped.
The biggest deficit was a deficit of $1.4 trillion in 2009, before the deficit widened during the two years of the global pandemic, as the US spent heavily to lift the country out of a severe recession following the 2008 financial crisis.
For 2021, a joint report by the Treasury and the Office of Management and Budget said government spending rose 4.1% to $6.82 trillion. This was offset by an 18.3% increase in government revenue, a gain that reflected the recovery in the economy as millions of people who lost jobs at the start of the pandemic went back to work and corporate profits were rejuvenated after a catastrophic 2020.
“Under President Biden, the US economy is getting back on track and Americans are getting back to work,” the administration’s budget report said.
The non-partisan Congressional Budget Office expects the deficit to drop to $1.15 trillion in the current budget year, which began on October 1, and fall below $1 trillion for three years from 2023 to 2025 and then each year. will rise to above $1 trillion. 2031.
That forecast doesn’t include the spending that will happen if Biden is able to get two pending measures through Congress, a $1 trillion proposal for traditional infrastructure projects like roads and bridges and strengthening social safety nets and climate change. His plan to deal with change.
The security measure is worth $3.5 trillion, but must be scaled back to meet the objections of moderate Democrats such as Sen. Joe Manchin of West Virginia.