US budget deficit shrinks by $1 trillion over six months

0
30

A result made possible in particular thanks to a reduction in the amount of unemployment benefits paid combined with an increase in taxes.

The U.S. budget deficit more than halved in the first six months of fiscal year 2022, dropping $1 trillion to $668 billion, the Treasury Department said Tuesday.

The deficit fell by 61% during these six months, which go from October to March, compared to the same period last year. Government spending fell by 18%, in particular due to the fall in the amount of unemployment benefits that were paid, thanks to the economic recovery after the Covid-19 pandemic and the end of the payment of certain aid that had been put in place in response to the crisis. Revenues, on the other hand, increased by 25%, thanks in particular to the increase in taxes collected.

Rise in the cost of public debt interest

And, as inflation pushes interest rates back up from their lows at the start of the pandemic, interest costs on public debt jumped 44% in March alone (compared to to March 2021), and 27% over the last six months, compared to the same period last year


SEE ALSO – Oil: Joe Biden announces “largest use in history” of the country’s strategic reserves

.

LEAVE A REPLY

Please enter your comment!
Please enter your name here