The U.S. federal budget deficit widened 454 percent in March from a year earlier as the government issued a third round of stimulus checks to help Americans weather the economic impact of the new crown epidemic.
The budget gap rose to $660 billion in March, up from $119 billion a year earlier, the U.S. Treasury said Monday. revenues rose 13 percent to $268 billion in March, while spending rose 161 percent to $927 billion.
The surge in government spending provided some cushion for the economy from the devastation of the epidemic, but the deficit also soared to its highest level as a share of the economy since the end of World War II. Weak tax revenues also contributed to the widening deficit.
In the first six months of fiscal year 2021, the budget deficit widened by 130 percent to a record $1.7 trillion. From last October to the end of March, spending rose to $3.4 trillion, an increase of 45 percent. Revenues rose 6 percent to $1.7 trillion.
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