The US federal government spent a stunning $6.6 trillion in fiscal year 2020, and had to borrow nearly half that, sending taxpayers far deeper into debt, administration officials said yesterday.
The $3.1trn deficit is more than twice the previous record set under President George W Bush and President Obama in the wake of the Great Recession.
Revenue dipped slightly last year compared with 2019, but the real damage came on the spending side where President Trump and Congress opened the country’s wallet and shovelled out cash to deal with the coronavirus pandemic.
Administration officials said that heavy spending has actually helped limit the economic impacts of the pandemic.
“Thanks to President Trump’s pro-growth policies and the bipartisan CARES Act, we are experiencing a strong economic recovery,” said Treasury Secretary Steven Mnuchin.
Heading into the year, the administration had projected steady growth. It saw revenue rising from $3.5trn to $3.7trn, and spending go from $4.4trn to $4.8trn.