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The US budget deficit for 2021 totaled $2.77 trillion, the second-highest on record, but has improved from an all-time high of $3.13 trillion in 2020. The deficit in both years reflects trillions of dollars in government spending to counteract the devastating effects of one. Global pandemic.

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The Biden administration said on Friday that the 2021 deficit for the budget year ending Sept. 30 was $360 billion lower than 2020, as revenues increased as the economy improved, reducing government spending from pandemic relief efforts. Offset helped.

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The biggest deficit was a deficit of $1.4 trillion in 2009, before the deficit widened during the two years of the global pandemic, as the US spent heavily to lift the country out of a severe recession following the 2008 financial crisis.

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For 2021, a joint report by the Treasury and the Office of Management and Budget said government spending rose 4.1% to $6.82 trillion. This was offset by an 18.3% increase in government revenue, a gain that reflected a recovery in the economy as millions who lost jobs at the start of the pandemic went back to work and rejuvenated corporate profits after a catastrophic 2020 Gaya.

“Under President Biden’s leadership, the US economy is getting back on track and Americans are getting back to work,” Treasury Secretary Janet Yellen and executive director of the Office of Management and Budget Shalanda Young said in a joint statement.

The non-partisan Congressional Budget Office expects the deficit to drop to $1.15 trillion in the current budget year, which began on October 1, and fall below $1 trillion for three years from 2023 to 2025 and then each year. will rise to above $1 trillion. 2031.

That forecast doesn’t include the spending that will happen if Biden is able to get two pending measures through Congress, a $1 trillion proposal for traditional infrastructure projects like roads and bridges and strengthening social safety nets and climate change. His plan to deal with change.

The US Capitol on Sunday, October 3, 2021 in Washington, DC, US. (Photographer: Samuel Corum/Bloomberg via Getty Images

The security measure is priced at $3.5 trillion, but is expected to increase to about $2 trillion to meet the objections of moderate Democrats such as Sen. Joe Manchin of West Virginia.

As a percentage of the overall economy, as measured by GDP, the 2021 deficit represented 12.4% of GDP, well below the 2020 deficit, which was 15% of GDP.

In their comments Yellen & Young credited Biden’s economic policies for contributing to the lower deficit, including Biden’s “sharp action to mount a historic vaccination effort” and $1.9 trillion in additional spending in the stimulus bill passed in March. Including his success in getting Congress to approve it.

“While the country’s economic recovery is stronger than that of other wealthy countries, it is still fragile,” Yellen said. “To build on the progress that has been made… Congress must pass President Biden’s Build Back Better plan.”