On Monday, the US Treasury Department had issued a statement saying that the US Federal budget deficit for its fiscal year 2019-2020 had ballooned to $864 billion in June compared to a single digit reading a year earlier over the narratives of a continuation of vigorous spending on pandemic relief programs ahead of November 3, 2020 US Presidential election alongside a sweeping plunge in revenues generated by corporate and individual taxations amid an ongoing pandemic outbreak in the United States which had kept a lid of spending on a majority of American citizens.
Aside from that, the US Treasury Department of Secretary Steven Mnuchin had also added at its statement that the budget deficit in June had summed up the year-to-date fiscal shortfall to $2.7 trillion, widening its gap further from the previous full-year record budget deficit of $1.4 trillion registered during the ages of Great Financial Depression of 2007-2009.
Analysts forecast a deficit as high as $3.8 trillion by end of fiscal year 2019-2020
While some analysts in tandem had told following the reveal of Monday’s US Treasury Department’s report on a mammothlike budget deficit that the staggering sums could reach as high as $3.8 trillion at the end of US fiscal year 2019-2020 on September 30, nearly a triple of the nation’s previous record budget deficit of $1.4 billion clocked on 2009 as beforementioned, a spokesperson for the US Treasury Department was quoted saying to a press agency that the bulk of the June’s Federal budget deficit was caused by a $511 billion in Government Paycheck Protection Program (PPP) that was set off on April this year in a bid to keep the small-scale businesses operational by financing their losses if certain criterions were met.
On top of that, as more than 30 million US citizens, roughly a tenth of the entire US population, had been collecting an additional $600 in pandemic-driven unemployment benefits by late-June, the corporate and individual taxatios were faltered by 28 per cent to $241 billion in June on an annualized basis, which had added further strains into a US economy that entered into a recession territory in February this year.