Business & Investment

US budget deficit eased to $ 165 billion in October

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The US monthly budget deficit decreased in October as the government collected more taxes from individuals and businesses thanks to the significant economic improvements that resulted from the coronavirus pandemic.

The Treasury reported on November 10 that the federal government posted a $ 165 billion deficit last month. This was 42% lower than the same month last year, when spending surged to deal with the effects of the coronavirus while revenues declined, reaching a record deficit of $ 284.1 billion in October.

In October of this year, the first month of the 2022 government calendar, spending fell 14% from last year to $ 449 billion and revenues rose 19% to the October record of $ 284 billion. I did.

Treasury officials said on November 10 that the decline in the deficit in October this year was due to higher tax revenues from millions of workers and a surge in corporate profits as the economy resumed. Many companies were suffering last October as there were no vaccines yet and people remained trapped in their homes.

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October tax revenues were also boosted as those who applied for the extension expired their invoices last month.

The decline in spending from October last year to this year was partly due to the decline in spending by the Ministry of Education related to the funding of coronavirus to public schools.

The 2021 deficit, which ended on September 30, totaled $ 2.77 trillion, the second highest ever. But that was an improvement over the record $ 3.13 trillion achieved in 2020. Both year deficits reflect trillions of dollars in government spending to counter the devastating effects of a pandemic.

The largest deficit was a $ 1.4 trillion shortfall in 2009, before the deficit swelled in the two years of the pandemic. At that time, the United States was spending a lot of money to pull the country out of the severe recession following the 2008 financial crisis.

The nonpartisan parliamentary budget bureau has reduced its deficit to $ 1.15 trillion in the current budget year starting October 1, falling below $ 1 trillion in the three years from 2023 to 2025, and then $ 1 trillion annually. Expected to exceed. 2031.

The CBO forecast does not include spending from the recently passed $ 1 trillion infrastructure bill or other potential spending measures on President Joe Biden’s agenda.

The CBO forecasts that the deficit over the next decade will add another $ 12.1 trillion in national debt.

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US budget deficit eased to $ 165 billion in October US budget deficit eased to $ 165 billion in October

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