Federal Budget Deficit Hits New Record

Earlier tax filing deadline boosts receipts…
Spending continues to rise amid stimulus measures…

The U.S. budget deficit continues to surge amid the pandemic.

The Treasury Department’s Monthly Treasury Statement for May shows the deficit ballooned to a record-high $2.064 trillion in the first eight months of fiscal year 2021.

The government ran a deficit of $132 billion in May, down sharply from $399 billion in May 2020.

That decrease came as the tax filing deadline was earlier this year than last and as more Americans returned to work.

Government receipts surged 167% year-over-year to $464 billion dollars.

The tax filing deadline this year was delayed just a month to May 17 while last year’s deadline was delayed to July 15.

With more Americans returning to the workforce, taxes withheld from wages rose to $204 billion, up 20% compared to a year ago.

Corporate taxes collected also rose to $18 billion from $2 billion in May 2020.

Government spending rose 4% in May to $596 billion as COVID stimulus benefits continue to be paid out.

In the fiscal year through May, receipts jumped 29% from a year ago to $2.607 trillion while spending rose 20% to $4.671 trillion.

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