The US budget deficit grew to a record of $2.1 trillion during the first eight months of the fiscal year as spending continued to outpace tax receipts that are rising as the economy recovers from the damage caused by the Covid-19 pandemic.
Federal revenue for the eight-month period ending in May increased 29%, to a record $2.6 trillion, primarily due to higher receipts from individual and corporate income taxes, the Treasury Department stated on Thursday.
Outlays increased 20%, to a record $4.7 trillion, fueled by payments for unemployment benefits, nutrition assistance, and Covid-19 relief programs including emergency small-business loans and stimulus checks to households.
For the month of May, the deficit was $132 billion, roughly a third of what it was a year earlier. Revenue increased by 167% to $464 billion, while spending increased 4% to $596 billion. Charges in tax-payment deadlines due to the pandemic contributed to the monthly revenue fluctuation.