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The US Treasury Department had issued a statement on Wednesday saying that the world’s No 1 economy had witnessed the smallest monthly budget deficit in nearly two years, as an increase in employment had ramped up income tax receipts. According to US Treasury Department, the US Government had experienced around a $21 billion in monthly budget deficit in December, which happens to be roughly 85 per cent lower compared to a deficit of $144 billion reported at the same time a year earlier, while the December budget deficit had been the tiniest since a deficit of $13 billion registered on December 2019, just a couple of months before a pandemic outbreak had literally stagnated global economic activities.
US Government posts lowest budget deficit in more than 2 years
According to US Treasury Department data released earlier in the day, individual income tax receipts rose by 41 per cent to a whopping $487 billion in December, marking off a record monthly gain in income taxations, while Government spending soared 4 per cent to $508 billion.
Aside from that, latest US Treasury Department data comes over the heels of a monthly employment report released on last Friday, which had shown that US unemployment rate dipped to a 22-month low of 3.9 per cent in December, suggesting the US economy might already have reached a higher inflation, while a higher individual tax receipts also had vindicated a latest boost in US employment.
Concomitantly, during first three months of fiscal year 2022 that spanned between October and December, the US Government’s budget deficit dropped by 34 per cent to $378 billion compared to a record $1.052 billion in deficits logged at the same time a year earlier.