WASHINGTON (Reuters) – The U.S. federal budget deficit in June surged to $864 billion from single digits a year earlier amid continued strong spending on coronavirus relief programs and a drop in individual and corporate tax receipts, the Treasury Department said on Monday.

The June deficit brought the year-to-date fiscal deficit to $2.7 trillion, far eclipsing the previous full-year record of $1.4 trillion in 2009.

Some analysts forecast a gap as high as $3.8 trillion for the fiscal year to Sept. 30.

Outlays were up 223% to $1.1 trillion, a record increase for any month. The bulk of the June’s jump in outlays was $511 billion for the government’s Paycheck Protection Program, set up in April and designed to keep small businesses afloat by funding loans that are forgivable if certain criteria are met.

A senior Treasury official told reporters that under U.S. government accounting rules, the funds were recorded as spent in June even though Treasury has not yet paid out for forgiveness of those loans and not all may be forgiven.

June receipts fell 28% to $241 billion, a reflection of job losses due to the coronavirus pandemic but also this year’s extension of the tax filing deadline to July from April.

Reporting by Lindsay Dunsmuir; Editing by Andrea Ricci

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Facebook targets UK growth with 1,000 hires this year

LONDON (Reuters) – Facebook will hire 1,000 people in London this year in roles such as product development and safety as it continues to grow its biggest engineering center outside the United States after Britain leaves the European Union. Over…

Manufacturers entangled in logistical nightmare as virus-hit China limps back to work

SHANGHAI/BANGKOK (Reuters) – Blocked highways. Stranded workers. Dwindling supplies. Shipping and air freight companies also hamstrung. The Chinese manufacturing engine that powers much of the world economy is struggling to restart after an extended Lunar New Year break, hindered by…

BlackRock stands by climate priorities, sees tougher shareholder votes

BOSTON/LONDON (Reuters) – BlackRock Inc executives who set the asset manager’s influential proxy votes on Tuesday outlined tougher priorities tied to climate change and executive pay for the upcoming corporate annual meeting season. The comments fleshed out details about how…

Turkey accuses five nations of forming ‘alliance of evil’

ANKARA, Turkey — Turkey on Tuesday accused Greece, Cyprus, Egypt, France and the United Arab Emirates of seeking to form an “alliance of evil” after these countries issued a joint declaration denouncing Ankara’s policies in the eastern Mediterranean and Libya.…