UPDATED 6:22 PM PT – Monday, April 12, 2021
U.S. federal budget deficit hit a record high amid elevated spending and slow GDP recovery by the Biden administration.
According to the Treasury Department on Monday, U.S. budget deficit hit a record $1.7 trillion in the period between October 2020 and March 2021. The deficit rose mainly due to Joe Biden’s stimulus package passed in March, which erased the previous fiscal consolidation by the Trump administration.
Federal spending grew 45 percent, while federal receipts rose just 6 percent over that period.
Federal spending grew 45% in fiscal year 2020. This is more than double the 2009 increase following the Great Recession. Federal spending in 2020 was equivalent to 31% of GDP, higher than the 20% annual average since 1980. https://t.co/Jz4r60mGac pic.twitter.com/5tfr6L77GZ
— USAFacts (@USAFacts) March 5, 2021
Critics said U.S. public finances are becoming increasingly unsustainable.
“Because that growth was established by first getting loans, often from foreign countries,” Hans Netten, senior lecturer at Hague University said. “And then all of that money from those loans was dumped into the American economy, so that the American government and all kinds of big American companies that the government gives all kinds of lucrative contracts to, they could then spend all that money, and your government called it economic growth.”
Biden is now seeking to spend yet another $2 trillion to finance Democrat partisan projects disguised as an infrastructure package.