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US budget deficit hits $2.77 trn in 2021, the second highest

26
Oct '21
Pic: Shutterstock
Pic: Shutterstock
US budget deficit totalled $2.77 trillion for the fiscal that ended on September 30, 2021. It is the second highest on record but an improvement from the all-time high 2020 figure of $3.13 trillion as a recovering economy boosted revenues, helping to offset government spending from pandemic relief efforts, the US administration said recently.

The deficits in both years reflect trillions of dollars in government spending to tackle the devastating effects of the COVID-19 pandemic.

Before the deficits of the past two pandemic-hit fiscals, the biggest deficit the US government recorded was a shortfall of $1.4 trillion in 2009 during President Barack Obama’s administration as the government spent heavily to lift the country out of a severe recession following the 2008 financial crisis.

Fibre2Fashion News Desk (DS)


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