Politics US budget deficit for current year hits record $2.1 trillion
Parliamentarian: Democrats only get one more chance to sidestep GOP this year
Senate Parliamentarian Elizabeth MacDonough has effectively ruled that only one more automatic budget reconciliation is permissible this year, dealing a blow to Democrats who previously thought they would have two more chances to sidestep Republicans in advancing President Biden's agenda.MacDonough ruled that a revision to the 2021 budget resolution cannot be automatically discharged from the Senate Budget Committee, meaning Democrats would need at least one Republican on the 11-11 panel to vote with them. The bombshell ruling effectively means Senate Majority Leader Charles Schumer (D-N.Y.
WASHINGTON (AP) — The U.S. budget deficit hit a record $2.06 trillion through the first eight months of this budget year as coronavirus relief programs drove spending to all-time highs.
The shortfall this year is 9.7% higher than the $1.88 trillion deficit run up over the same period a year ago, the Treasury Department said Thursday in its monthly budget report.
The report showed that spending from October through May totaled a record $4.67 trillion, up 19.7% from the same period a year ago. Government tax revenue was up 29.1% to $2.61 trillion, compared to the same period a year ago.
Joe Biden Believes There Is No Government Waste
Waste-busting ‘Sheriff Joe’ hangs up his badge.The Biden-Harris administration’s $6 trillion budget for fiscal year (FY) 2002 is 37 percent greater than the $4.4 trillion spent in FY 2019, which was the last budget before the pandemic. Even with a $4 trillion tax increase, there is still a $1.84 trillion deficit, which is 86 percent greater than the $984 billion deficit in FY 2019. Deficits will exceed $1 trillion for each of the next ten years, pushing the national debt to more than $39 trillion from the current $28.4 trillion.
However, this year's figure was bolstered by tax payments made in May, a month later than the normal April deadline but a month earlier than last year's June deadline.
Video: Federal deficit hits $1.9T, another record high, in 2021 (CNBC)
Since the COVID-19 pandemic hit in March 2020 pushing 22 million people out of work, the government has responded even more forcefully with trillions of dollars in increased spending.
That support has included three rounds of direct payments to individuals, with the last payments authorized in the $1.9 trillion relief package that President Joe Biden pushed through Congress in March.
Other support programs provided billions of dollars in emergency unemployment benefits and forgivable loans.
Biden's massive budget proposal leaves the nation fiscally vulnerable
Clearly the president is focusing on investments in the future — a praiseworthy goal, however, one that will not be effective in practice if at the same time we are increasing the mountain of debt our kids are slated to inherit. Maya MacGuineas is president of the bipartisan Committee for a Responsible Federal Budget.
The deficit for the budget year that ended Sept. 30 totaled a record $3.1 trillion. Biden, who, is projecting that this year's deficit will total $3.67 trillion and will remain above $1 trillion every year over the next decade, reflecting his ambitious plans to boost spending on infrastructure and American families.
The annual federal deficit first topped $1 trillion in 2009 and remained above that level for four years as a deep recession triggered by the 2008 financial crisis depressed tax revenues and led to increased government spending to fight the downturn.
The deficit in May totaled $132 billion, compared to a deficit in May 2020 of $398.8 billion that heavy spending on the initial pandemic relief programs and the delay of the tax deadline.
America's allies and enemies will take note of Biden's low-priority defense budget .
Several members of Congress already have voiced objections to shortfalls in the Biden defense budget.How allies, partners and adversaries will interpret the absence of any mention of classic concepts of national security is anyone's guess.