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US budget deficit hits $2.77 trillion in 2021, 2nd highest

The U.S. budget deficit totaled $2.77 trillion for 2021, the second highest on record but an improvement from the all-time high of $3.13 trillion in 2020

Via AP news wire
Friday 22 October 2021 16:17 BST
Treasury Sanctions
Treasury Sanctions (Copyright 2021 The Associated Press. All rights reserved.)

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The U.S. budget deficit totaled $2.77 trillion for 2021, the second highest on record but an improvement from the all-time high of $3.13 trillion reached in 2020. The deficits in both years reflect trillions of dollars in government spending to counteract the devastating effects of a global pandemic.

The Biden administration said Friday that the 2021 deficit, for the budget year that ended Sept. 30 was $360 billion lower than 2020 as a recovering economy boosted revenues, helping to offset government spending from pandemic relief efforts.

Before the pandemic deficits of the past two years, the biggest deficit the federal government recorded was a shortfall of $1.4 trillion in 2009 during the Obama administration as the government spent heavily to lift the country out of a severe recession following the 2008 financial crisis.

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