On Thursday, the US Congressional Budget Office had released an unofficial 2020 budget deficit reading for an ailing US economy, while the budget figures had unveiled an eye-popping $3.1 trillion in deficits over the last fiscal year that ended on September 30, marking up a record reading inflated by a trillion-dollar pandemic stimulus bill approved in the US Congress back in the April this year.
Apart from that, the Congressional Budget Office had also added at its preliminary report that the budget deficits equaled to a 15 per cent of entire US economy, while the mass-scale gap could only match a massive borrowing that financed the final year of the World War II.
Notably, the tally of red inks of a preliminary budget deficit figure had been roughly three folds that of last year’s budget gap.
Pandemic pushes US budget deficit to an all-time high of $3.1 trillion
In point of fact, according to the Congressional Budget Office’s preliminary budget readings, the Trump Administration had spent a total of $6.6 trillion last year, while the US Government had borrowed an approximated 48 cents for every dollar it had spent and the numbers accounted for a 47 per cent increase in expenses compared to the last year.
Besides, the Washington-based CBO (Congressional Budget Office) had been quoted saying that an eye-watering increase in expenses this year was largely catalyzed by a $578 billion in the paycheck protection program that had proffered a one-time $1,200 paycheck for every American adult and $500 for every child during the peak of the pandemic, alongside a $443 billion due to a sharp rise in unemployment benefits over the past six months.
Nonetheless, the havoc-scale readings in US budget deficit were expected, though a bleaker revenue picture had added to a dismal fiscal landscape as income tax dropped by 16 per cent following a jump in unemployment rates and the corporate income taxes fell 21 per cent.
The massive deficits have been more than double of a prior record of $1.4 trillion registered during the first year of Obama administration in 2009 in context of the Great Financial Depression of 2007-2009.