Federal Government Sets New Deficit Records
Article from For Liberty by Norm Leahy.
The federal government is racking up the largest monthly and quarterly deficits in history, with the red ink totaling $864 billion for the month of June, alone.
By comparison, the June 2019 monthly deficit was $8 billion.
According to the Treasury Department:
More than half of this increase was due to a $511 billion increase in Small Business Administration budget outlays, primarily for the Paycheck Protection Program (PPP). Cash expenditures for loan forgiveness under PPP will occur in subsequent months.
For the Fiscal Year 2020, which began in October 2019, the government has spent more than $5 trillion and had revenues of $2.26 trillion – a deficit of more than $2.7 trillion.
The fiscal Year 2020 ends Sept. 30. Congress is currently debating another round of fiscal stimulus aimed at countering the economic effects of the coronavirus. The House approved a$3.5 trillion measure in May.
Treasury Secretary Steve Mnuchin expects a deal on some form of stimulus by the end of July.
The current federal debt stands at nearly $26.5 trillion.
Image Credit: By Jericho [CC BY 3.0 (http://creativecommons.org/licenses/by/3.0)], via Wikimedia Commons