US budget deficit soars to $2 tn during first 8 months FY21: Treasury Dept

The US budget deficit soared to $2.1 trillion during the first eight months of fiscal year 2021, which ends on September 30, the Treasury Department reported.

Federal revenue for the eight-month period ending in May rose to $2.6 trillion, while total outlays rose to $4.7 trillion, driven by payments for jobless benefits and Covid-19 relief programs, Xinhua news agency reported citing the Department as saying on Thursday.

"While the final payment of individual taxes for calendar year 2020 were shifted into May 2021, greater outlays associated with the pandemic response still resulted in a deficit this year," the Treasury added.

 

The White House last month unveiled a $6 trillion budget proposal for fiscal year 2022, drawing backlash from Republican lawmakers and budget watchers.

Maya MacGuineas, president of the Committee for a Responsible Federal Budget, has urged the administration to take stock of its unsustainable fiscal outlook and put an end to further government borrowing.

"We're borrowing even more this year than we did last year, and with nearly $2.1 trillion in deficits so far this year, our debt is rapidly approaching a new record. Once we are through the Covid-19 crisis, policymakers will need to work together to get our growing debt under control and secure our endangered trust funds," MacGuineas said in a statement.

"It's time to put an end to further government borrowing. Going forward, legislation should be fully paid for and reconciliation instructions should be budget neutral, if not deficit reducing."

--IANS

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