U.S. Treasury reports record US$738 billion budget deficit in April

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Photo taken on March 19, 2020 shows U.S. dollar banknotes in Washington D.C., the United States. The Trump administration's plan to send Americans relief money as part of a massive stimulus package in response to COVID-19 could be 1,000 U.S. dollars per person, and 500 dollars per child, Treasury Secretary Steven Mnuchin said Thursday. (Xinhua/Liu Jie)
Photo taken on March 19, 2020 shows U.S. dollar banknotes in Washington D.C., the United States. The Trump administration's plan to send Americans relief money as part of a massive stimulus package in response to COVID-19 could be 1,000 U.S. dollars per person, and 500 dollars per child, Treasury Secretary Steven Mnuchin said Thursday. (Xinhua/Liu Jie)

The U.S. Treasury Department on Tuesday reported a record 738 billion-U.S. dollar budget deficit in April as the COVID-19 fallout continues to ripple through the country.

Government spending for April totaled 980 billion dollars, an increase of 604 billion dollars over April 2019, largely due to the release of assistance related to the COVID-19 outbreak, the department said.

Revenues totaled 242 billion dollars in April, 294 billion dollars lower than April 2019 as certain taxes from individuals and corporations were deferred until July, according to the department.

The budget deficit so far for the fiscal year 2020 that began Oct. 1, 2019 climbed to 1.481 trillion dollars.

“Plunging tax receipts and ballooning outlays are likely to remain a fixture of the near-term fiscal outlook,” Michael Pugliese, economist at Wells Fargo Securities, wrote Tuesday in a note, adding record April budget deficit signals “the start of borrowing binge.”

U.S. budget deficits will total more than 3.8 trillion dollars this year, with debt held by the public exceeding the size of the economy by Sept. 30, the end of fiscal year 2020, according to the Committee for a Responsible Federal Budget (CRFB), a nonpartisan watchdog group.

Since President Donald Trump took office in 2017, the U.S. national debt has risen from under 20 trillion dollars to over 24 trillion dollars. Enditem

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