US Budget Deficit Soars To Record Highs, Coronavirus Relief Helps Drive Numbers Up

The United States deficit has soared to a record high following an outpacing in spending by the federal government due to the coronavirus that did not meet the amount taken in from revenue.

BBC News reports that in the first 11 months of the financial year, the federal government spent more than $6 trillion, including $2 trillion on various coronavirus related programs. However, only $3 trillion was taken in from taxes, which means the deficit shortfall is now more than double the previous record.

The Congressional Budget Office also predicts the US will run a full-year deficit of $3.3 trillion, more than triple the amount from the previous year, and overall US debt is set to exceed $26 trillion.

The previous record came following the aftermath of the 2008 housing financial crisis and recession, but the current crisis has led to even more financial trouble in the US, with the coronavirus upsetting not only federal funds but the money US citizens have had in their own bank accounts, after record numbers of unemployment due to COVID-19.

Unemployment claims are still at a record high in the US after millions were forced to file for benefits after the economy all but shut down due to the pandemic, which took first took hold in March. Initially, those collecting benefits due to the pandemic were also eligible for an additional $600 stipend, which ran out in July. Stimulus check payments were also distributed to US residents as well in April.

Plans for a second stimulus package to provide more benefits have been at a virtual standstill in Congress, with Democrats and Republicans deadlocked on various points in proposed elements of the bills. An agreement on a relief package was not reached in August, which led to President Trump signing a series of executive orders to extend a federal moratorium on evictions, suspend student loan payments and provide a payroll tax deferral.