icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
12 May, 2020 19:09

US reports record $738 BILLION budget deficit in April due to Covid-19

US reports record $738 BILLION budget deficit in April due to Covid-19

The US Treasury Department has announced a budget deficit of $737.9 billion in April thanks to spending measures put in place to battle the economic effects of the ongoing coronavirus pandemic.

Emergency relief spending by the US government has reached around $3 trillion, with $2.3 trillion approved in late March by Congress for a relief package for US citizens. 

The latest deficit figure is another bad sign for the US economy as April is typically a month which sees a surplus, thanks to US citizens filing their taxes on April 15. However, that filing deadline was extended into the summer because of the pandemic. 

Also on rt.com Worst month since Great Depression: US unemployment rate soars to 14.7%, with 20.5 million jobs lost in April

Over the past 66 years, the Treasury Department has only posted a deficit in April 15 times. By comparison, it announced a surplus of $160.3 billion for the same period last year.

The US economy lost over 20 million jobs in April, and while the current unemployment rate across the country stands at nearly 15 percent, some experts predict that figure will rise above 20 percent over the summer. 

Also on rt.com America facing debt ‘conundrum’ – former Fed insider tells Boom Bust

The record deficit signifies the US is headed into uneasy economic territory. With more than 33 million people collecting unemployment benefits and most businesses remaining closed due to lockdown orders, the federal government is not only spending more than usual, but working from a place where almost no revenue is being raised through taxes.

If you like this story, share it with a friend!