FAST FIVE: US Spends 90% More Than It Collects In First 7 Months Of Fiscal 2021
US Spends 90% More Than It Collects In First 7 Months Of Fiscal 2021 With “base effect” all the rage this month, moments ago we also got the 1-year anniversary of the Covid crash in the US budget deficit dataset when the Treasury reported the April government revenue and spending.
And while the data in isolation wasn't pretty, it was absolutely stellar compared to last April's blowout $738 billion deficit.
Of note: $7.2BN of the money collected by the Treasury included $7.2BN in Fed remittances from “profits” on the Fed's QE.
The resulting April deficit was “only” $225.6 billion, which while still staggeringly high, was a fraction of the near record $738BN deficit recorded a year ago.
As a result, seven months into the fiscal year, the YTD deficit stood at a record $1.932 trillion compared to $1.481 trillion, although whether 2021 overtakes 2020 depends on if and when Biden will pass his next (of many) stimulus programs.