U.S budget deficit hits record $3 trillion

Washington: The U.S budget deficit hit an all-time high of 3 trillion for the first 11 months of budget year, the Treasury Department said.

The ocean of red ink is a product of the government's massive spending to try to cushion the impact of a coronavirus-fuelled recession that has cost millions of jobs.

The deficit from October through August is more than double the previous 11-month record of 1.37 billion set in 2009. At that time, the government was spending large sums to get out of the Great Recession triggered by the 2008 financial crisis.

With one month to go in the 2020 budget year, which ends September 30, the deficit could go even higher.

The Congressional Budget Office is forecasting the deficit will hit a record 3.3 trillion.

 

 

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