US deficit officially hits $3 trillion amid Coronavirus pandemic

The United States has set a new record in the budget deficit. The country’s top economy has already a budget deficit of $ 3 trillion due to various financial assistance and incentive projects and programs it has taken to combat the Coronavirus scourge.

The deficit is double that of 2009. Washington had to deal with such a shortage in 2008 due to the housing financial crisis.

Meanwhile, as a result of the Corona epidemic and the many restrictions imposed, incomes in poor countries have fallen sharply. Millions of people are living in inhumane poverty. News from the BBC.

On the one hand, business is damaged due to coronavirus. On the other hand, the US economy is in dire straits at the expense of huge sums of money from the government’s Corona Relief Fund. The US Federal Reserve has spent more than 6 trillion in the first 11 months of this fiscal year, according to a US Treasury Department report. Of this, $ 2 trillion has been spent on corona control programs alone. These expenditures exceeded tax revenues ($ 3 trillion).

The US economy has more than doubled its record deficit for the full year in 2009. At the time, Washington was struggling to cope with the turmoil in the housing sector caused by the 2008 Great Depression.

Prior to the outbreak of the Corona epidemic, the US budget deficit for the current fiscal year was estimated at $ 1 trillion. 1 trillion dollars is also a huge deficit in the history of the US economy.

But the deficit has skyrocketed as the government has begun spending heavily as a precautionary measure to minimize economic impact on Corona.

The U.S. Congressional Budget Office predicted this month that the United States would face an annual deficit of $ 3.3 trillion. The deficit is three times higher than last year.

Where the U.S. federal government’s fiscal year ends in September. The government agency says the US government’s debt could exceed $ 26 trillion this year.

Corona has had a negative impact on the economy of every country in the world, rich and poor alike. In rich countries, incomes have already dropped by 45 percent. And in poor countries it has decreased by 69 percent.

According to a recent survey conducted by the BBC World Service on the livelihoods of 30,000 people in 26 countries, the situation in the poorest countries is the worst.

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