US budget deficit hits $2.77 trillion in 2021, 2nd highest

The Biden administration said Friday that the 2021 deficit, for the budget year that ended Sept. 30 was $360 billion lower than 2020 as a recovering economy boosted revenues, helping to offset government spending from pandemic relief efforts.

Associated Press

Oct 22, 2021, 4:05 PM

Updated 914 days ago

Share:

US budget deficit hits $2.77 trillion in 2021, 2nd highest
The U.S. budget deficit totaled $2.77 trillion for 2021, the second highest on record but an improvement from the all-time high of $3.13 trillion reached in 2020. The deficits in both years reflect trillions of dollars in government spending to counteract the devastating effects of a global pandemic.
The Biden administration said Friday that the 2021 deficit, for the budget year that ended Sept. 30 was $360 billion lower than 2020 as a recovering economy boosted revenues, helping to offset government spending from pandemic relief efforts.
Before the deficit ballooned during two years of a global pandemic, the highest the biggest deficit had been a shortfall of $1.4 trillion in 2009 as the U.S. spent heavily to lift the country out of a severe recession following the 2008 financial crisis.
For 2021, the joint report from Treasury and the Office of Management and Budget said that government spending increased 4.1% to $6.82 trillion. This was offset by an increase of 18.3% in government revenues, a gain that reflected an improving economy as millions of people who had lost jobs at the start of the pandemic went back to work and corporate profits were rejuvenated after a horrendous 2020.
“Under President Biden's leadership, the U.S. economy is getting back on track and Americans are getting back to work,” the administration's budget report said.
The non-partisan Congressional Budget Office expects the deficit will fall to $1.15 trillion in the current budget year, which began Oct. 1, and will dip below $1 trillion for three years from 2023 through 2025 before rising again above $1 trillion for each year through 2031.
That forecast does not include the spending that will occur if Biden is able to get two pending measures through Congress, a $1 trillion proposal for traditional infrastructure projects such as roads and bridges and his plan to bolster the social safety net and combat climate change.
The safety net measure has a price tag of $3.5 trillion but it expected to be scaled back to meet the objections of moderate Democrats such as Sen. Joe Manchin of West Virginia.


More from News 12
1:49
Fire in Newark displaces dozens of people, destroys businesses

Fire in Newark displaces dozens of people, destroys businesses

2:23
Spotty showers overnight with lows around 48; breezy but sunny Wednesday ahead

Spotty showers overnight with lows around 48; breezy but sunny Wednesday ahead

1:17
Police: 4 thieves stole high-end handbags from Montclair shop

Police: 4 thieves stole high-end handbags from Montclair shop

1:37
NJ Business Coalition urges lawmakers to reconsider corporate transit fee

NJ Business Coalition urges lawmakers to reconsider corporate transit fee

0:28
Police: Man accused of stealing steaks from Bayonne Walmart at knifepoint

Police: Man accused of stealing steaks from Bayonne Walmart at knifepoint

0:19
Road rage incident in Jersey City caught on camera; police seek driver

Road rage incident in Jersey City caught on camera; police seek driver

0:56
Jersey Proud: Man walks across the US raising money for ‘America Walks’

Jersey Proud: Man walks across the US raising money for ‘America Walks’

2:00
Seaside Park enacts new ‘No Wake Zone’ law to prevent people causing havoc in flooded streets

Seaside Park enacts new ‘No Wake Zone’ law to prevent people causing havoc in flooded streets

1:07
Paterson middle school briefly goes into lockdown following gunshots at nearby home

Paterson middle school briefly goes into lockdown following gunshots at nearby home

2:04
Police: Crews rescue 46 dogs from fire inside Pio Costa industrial complex in Fairfield

Police: Crews rescue 46 dogs from fire inside Pio Costa industrial complex in Fairfield

0:31
Sources: Body recovered in Barnegat Bay believed to be missing Island Heights woman

Sources: Body recovered in Barnegat Bay believed to be missing Island Heights woman

1:52
Police: South Brunswick crash involving car and motorcycle kills 1

Police: South Brunswick crash involving car and motorcycle kills 1

0:55
News 12 and Red Bulls host Weather Education Day at Red Bull Arena

News 12 and Red Bulls host Weather Education Day at Red Bull Arena

0:20
Police: Burglar found in crawl space at Ocean Township diner

Police: Burglar found in crawl space at Ocean Township diner

Police: 1 person killed in car crash on Route 535 in South Brunswick

Police: 1 person killed in car crash on Route 535 in South Brunswick

0:29
Moscow court rejects Evan Gershkovich's appeal, keeping him in jail until at least June 30

Moscow court rejects Evan Gershkovich's appeal, keeping him in jail until at least June 30

0:27
Newark Liberty International Airport’s Terminal A named world’s best terminal by Skytrax

Newark Liberty International Airport’s Terminal A named world’s best terminal by Skytrax

1:52
Rahway police seek public’s help identifying suspects in attempted car thefts, burglaries

Rahway police seek public’s help identifying suspects in attempted car thefts, burglaries

0:29
Former Wildwood mayor indicted for 2nd time, accused of tax evasion

Former Wildwood mayor indicted for 2nd time, accused of tax evasion

0:31
Authorities ID 3 people killed in South Brunswick crash

Authorities ID 3 people killed in South Brunswick crash