The Hill: US Budget Deficit Hits Record $3 Trillion: CBO

Article by Niv Elis in The Hill

The federal budget deficit hit an unprecedented $3 trillion in August, with another month to go before the end of the fiscal year, according to estimates from the Congressional Budget Office (CBO).

That figure amounts to $1.9 trillion more than the same period last year, and more than double the largest yearlong deficit on record, the CBO noted on Tuesday.

The difference comes almost entirely from increased federal spending due to the coronavirus pandemic, with revenues down just 1 percent but spending up 46 percent compared to the same period last year.

The U.S. has thus far thrown $6 trillion in relief spending at the coronavirus crisis, only half of which was covered by tax revenues and other receipts.

The CBO has estimated that the deficit for the full fiscal year ending this month will amount to $3.3 trillion, continuing to add to the nation's growing debt.

By next year, the debt will exceed 100 percent of GDP for the first time since World War II, and will break its all-time record in the years after.

Economists broadly agree that ...

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