On Wednesday, US Treasury Department said in a statement that the US Government had logged a jawdropping $144 billion in December budget deficits, largely over an unprecedented rise in pandemic-driven expenses alongside higher unemployment benefits, marking up a record-high for any month since the Government had begun to track down the data, though Treasury Department had also added that tax revenues shot up last month in the latest sign of an economic recovery.
On top of that, Treasury Department had said in the statement released earlier in the day that the US Government’s December budget deficit had spiked to a nearly 11-fold of that registered in the same time a year earlier.
US Government clocked a $13 billion in deficits in the December of 2019 before the pandemic outbreak had wreaked havoc over a rock-solid US economy which had been well en route to report a record eleven-year long streak of gains.
Treasury registers increase in year-end corporate taxation
In point of fact, although a December deficit of a whopping $144 billion could raise an atrocious alarming bell for an ailing US economy, in the latest flashpoint of a beacon of hope for a US economy at the end of tunnel, US Treasury Department had reported a 3 per cent rise in receipts to $346 billion compared to the same time a year earlier, while an inevitable pandemic-associated costs soared by 40 per cent to a monstrous $490 billion.
Apart from that, Treasury Department was also quoted saying at the statement that it had witnessed an increase in year-end corporate taxation as a swathe of tax-incentive measures adopted by the Trump Administration earlier in the 2017s had been set to expire, while there had been an increase in non-withheld income taxes as well.
Nonetheless, on a quarter-on-quarter basis, US budget deficits surged to a $573 billion over fiscal first quarter of the year that ended on December 31 compared to a deficit of $357 billion registered in a pre-pandemic Q1, 2020.