- 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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