Business

Deficit rises to nearly $2.1T

The federal deficit in May rose to nearly $2.1 trillion over the first eight months of fiscal 2021, according to data from the Treasury Department released Thursday.

Spending from October through May totaled $4.67 trillion, up from the $3.89 trillion in the same period a year ago.

Meanwhile, tax revenues for the first eight months of the fiscal year totaled $2.6 trillion, comparable to the same time period last year.

In May alone, the deficit was $132 billion, down from the same time a year ago, according to the Treasury Department. Federal spending last month reached $596 billion, while revenue climbed to just $464 billion.

Spending contributed to benefits from President Biden’s $1.9 trillion COVID-19 relief package continuing to be paid out, according to Reuters.

Deficit spending for fiscal 2020 spiked to a record $3.1 trillion. Deficit spending is likely to be a hot topic as Biden moves ahead with other spending proposals outside of the pandemic.

The president released his $6 trillion budget proposal late last month, with the deficit projected to reach $3.6 trillion this year before dropping to $1.8 trillion in 2022. In following years, the deficit would fall between $1.3 trillion and $1.6 trillion.