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The coronavirus relief spending blowout and recession pushed the federal deficit to a record-busting $3.1 trillion in fiscal 2020, three times the previous year’s budget shortfall, the Trump administration said Friday.
The previous year's deficit was $984 billion, by comparison. The administration projected a $1.1 trillion deficit for fiscal 2020 in February.
In a joint statement, Treasury Secretary Steven Mnuchin and Office of Management and Budget Director Russell Vought said government tax receipts totaled $3.42 trillion, $42 billion or 1 percent less than the previous year.
Meanwhile, spending catapulted to $6.55 trillion, $2.1 trillion or a 47 percent increase above fiscal 2019. The report attributed the surge in spending to four laws passed to provide pandemic relief and increased use of federal programs such as unemployment insurance.
Despite the surge of red ink, the officials said the economy “has begun an incredible comeback,” with 52 percent of the jobs lost during the pandemic recovered over the past five months. They pointed to the unemployment rate declining each month since its peak in April, falling to 7.9 percent in September.
