US budget deficit increases to $3tn record

Komal FatimaWeb Editor

12th Sep, 2020. 11:20 am
US budget deficit increases to $3tn record

The US budget deficit has increased to more than $3tn, a record high increase is seen. 

The Treasury Department said that the federal government has spent more than $6tn in the first 11 months of its financial year, including $2tn on coronavirus programmes.

According to the international news agency, the deficit is more than double the previous full-year record, set in 2009.

The US was tackling with a deficit of more than $1tn this year – large by historic standards.

BBC reported that the Congressional Budget Office this month predicted that the US was likely to run a full-year deficit of $3.3tn, more than triple the shortfall recorded last year. The federal government’s financial year ends in September.

The agency said it expected total US debt to exceed $26tn.

Jerome Powell, the head of the US central bank, told members of Congress after a hearing in June that America’s spending path was “unsustainable”, but said reducing the deficit should not be a priority given the state of the economy.

Data revealed that the economy decreased at an annual rate of more than 30% in the April-June period, job layoffs and business closures are continuing.

The Labor Department said this week that around 30 million people, around 20% of the American workforce, rely on unemployment benefits, despite reopening underway.

Asian shares struggle to shake off bearish mood after United States technology stocks giant fell anew on Friday on Wall Street.

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