US budget deficit up 25.1% in first 2 mths of budget year

Washington: The US government's deficit in the first two months of the budget year ran 25.1 per cent higher than the same period a year ago as spending to deal with the Covid-19 pandemic soared while tax revenues fell.

The Treasury Department reported Thursday that with two months gone in the budget year, the deficit totaled $429.3 billion, up from $343.3 billion in last year's October-November period.

The deficit — the shortfall between what the government collects in taxes and what it spends — reflected an 8.9 per cent jump in outlays, to $886.6 billion, and a 2.9 per cent decline in tax revenues, to $457.3 billion. Spending for the first two months of the budget year, which begins Oct 1, also set a record, while the deficit over the same period was also a record.