You are here: Home » International » News » Economy
Business Standard

Government piled up record deficit of $737.9 bn in April: US Treasury

The deficit so far for the fiscal year that began September 1 climbed to $1.48 trillion

Topics
US Treasury | US economy

Agencies 

US Treasury Building
Treasury normally runs surpluses in April as the government revenues swell because of the annual April filing deadline for tax payments

The federal government piled up a record deficit in April, traditionally a month of big budget surpluses.

The sea of red ink is being created by a drop in revenue and a massive increase in spending to fund efforts to deal with the coronavirus pandemic, news agency PTI reported.

The Treasury Department said Tuesday that the government racked up a shortfall of $737.9 billion last month. That was more than three times larger than the previous record monthly deficit of $235 billion set in February.

The deficit so far for the fiscal year that began September 1 climbed to $1.48 trillion.

ALSO READ: Covid-19 impact: Fed sees slow, uneven recovery from slowdown in US economy

Treasury normally runs surpluses in April as the government revenues swell because of the annual April filing deadline for tax payments. But this year, among the many measures the government has taken to try to cushion the blow of the coronavirus shutdowns, the April 15 tax deadline has been deferred to July 15.

The Congressional Budget Office has estimated that all the spending the government has done to deal with what is expected to be a sharp recession will push the deficit for the entire year to $3.7 trillion.

That would surpass the previous record $1.4 trillion set in 2009, the first of four years in which the annual deficits climbed above $1 trillion as the government battled to pull the country out of the Great Recession.

First Published: Wed, May 13 2020. 10:14 IST
RECOMMENDED FOR YOU