US recorded its smallest monthly budget deficit in two years last month
WASHINGTON – The US posted its smallest monthly budget deficit in two years last month, thanks to a rebounding economy that helped boost tax receipts, along with slow spending as some COVID relief programs ended .
The Treasury Department reported Wednesday that its December deficit of $21.3 billion was the smallest monthly deficit since the $13 billion deficit in December 2019. This was before the COVID pandemic hit the US and put millions out of work and sent the economy to a halt. a short but sharp slowdown
The government reported a deficit of $377.7 billion in the first three months of this budget year, which began on October 1. That’s 30.1% less than the shortfall during the same period a year ago, when the government was spending trillions of dollars to keep the economy from falling into an even deeper foul.
Many of those government aid programs are now being phased out or less tapped as more people go back to work.
Government revenue in the October-December period was up 30.1% compared to the same period a year ago. Tax revenues from individuals and corporations both grew in solid amounts, reflecting this year’s fastest-growing economy since the mid-1980s.
Government spending during that period rose a meager 3.8% to $1.43 trillion compared to the same period a year earlier. Government outlays and tax receipts, which totaled $1.05 trillion, were both records for the first three months of a budget year.
There was a loss of $21.3 billion in December, compared to a loss of $143.6 billion in December 2020. In fact last month would have been a surplus if not for the calendar quirks that require some government benefit payments for January to be paid in December.