US Hits a Record October Deficit of $284.1 Billion to Start Budget Year

What Happened:

• On Thursday, the Treasury Department announced that it reached a record budget deficit of $284.1 Billion in October of this year. October is the first month of the government's budget year which runs from October - September.

• This is significantly more than the $134.5 Billion deficit logged in Oct, 2019 and higher than the all-time record of $176 Billion logged in Oct, 2009, when the government was spending heavily to try and lift the country out of the recession caused by the sub-prime mortgage crisis.

• Overall, the Covid-19 pandemic has led the the country to a historically high annual deficit of $3.1 Trillion for 2020. The budget year officially ended on September 30th. The $3.1 Trillion deficit created in 2020 dwarfs the previous deficit record of $1.4 Trillion, set in 2009.

• The Congressional Budget Office estimates the deficit for this current budget year will be around $1.8 Trillion.

Photo Source: congress.gov

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