On Friday, the Trump Administration had revealed that its budget deficit for the fiscal year 2020 that ended on September 30, had been roughly three folds of a deficit of $984 billion reported a year earlier, pointing towards a pandemic-driven rise in expenses alongside a contraction in revenues.
In point of fact, Trump Administration had issued a statement on Friday reporting that its budgetary deficit for the fiscal year 2020 that ended on Sept. 30 had hit an all-time high of $3.1 trillion, more than double of the prior record of $1.4 trillion in deficits registered in the first year of Obama Administration while the United States had been spending heavily in order to back the country’s banking system and to contain the fiscal damages stemmed off the Great Financial Depression of 2007-2009.
Nonetheless, 2020 US budget deficit had blown the gaff of a sea of red Nile, while the deficit accounted for roughly 15.2 per cent of the United States entire Gross Domestic Product and had been the largest since 1945 when the United States had been borrowing heavily from its European allies in order to shore up its war chests to maintain the swelling expenses of World War II.
US 2020 budget deficit hits highest level since 1945 as spending surged 47.3%
Apart from that, according to the Trump Administration report revealed earlier on Friday, final accounting of 2020 budget had shown that the US Government spending had surged by 47.3 per cent to $6.55 trillion on a year-on-year basis, in part due to a trillion-dollar pandemic stimulus bill passed in the US Congress on April this year, while the United States’ annual revenues had witnessed a plunge of 1.2 per cent to $3.42 trillion.
In tandem, Friday’s joint statement from the US Treasury alongside the Trump Administration had also indicated a plunge of $203 billion in individual income taxes from the Government’s February projection, while corporate income taxes were jolted $51.8 billion from a February forecast.