Share
WASHINGTON — The federal budget deficit is projected to hit a record $3.3 trillion as huge government expeditures to fight the coronavirus and to prop up the economy have added more than $2 trillion to the federal ledger, the Congressional Budget Office said Wednesday.
That’s more than triple the 2019 shortfall and more than double the levels experienced after the market meltdown and Great Recession of 2008-2009. Government spending, fueled by four coronavirus response measures, would register at $6.6 trillion, $2 trillion-plus more than 2019.
The economy shut down in the spring so people could be in isolation, in a failed national attempt to defeat the pandemic. That shutdown led lawmakers and President Donald Trump to pump money into business subsidies, larger unemployment benefits, $1,200 direct payments, and other stimulus steps that have helped the economy in the short term.
But deficit scolds have long warned that rising levels of debt will serve as a drag on the economy in the coming years. The Federal Reserve has stepped in to keep credit markets stable and interest rates low.
Lawmakers and the White House are currently quarreling over the size and scope of a fifth virus relief bill, with Republicans growing skittish at the enormous costs of battling the pandemic.
The enormous deficit is bringing the federal debt, as measured by the size of the economy, near levels not experienced since the end of World War II. At year’s end, the amount of debt held by investors will approach the size of the economy.
RELATED TOPICS:
Officer Killed After Gunman Took Hostages at Pennsylvania Hospital
3 hours ago
Kash Patel Plans to Move Up to 1,500 Workers Out of Washington
9 hours ago
US and Ukraine Nearing Rare Earths Deal That Would Tighten Relationship
9 hours ago
Trump Fires Chairman of the Joint Chiefs of Staff and Two Other Military Officers
9 hours ago
Less Is More: 5 Ingredient Dinners Are Easier Than You Think
9 hours ago
Warren Buffett Offers Trump Some Advice While Celebrating Berkshire’s Success
10 hours ago
Pope Francis in Critical Condition After Long Respiratory Crisis
2 hours ago
Categories

Pope Francis in Critical Condition After Long Respiratory Crisis

Musk Gives All Federal Workers 48 Hours to Explain What They Did Last Week

Fresno State Suspends 2 Players, Removes Another Amid Gambling Investigation

Officer Killed After Gunman Took Hostages at Pennsylvania Hospital

Kash Patel Plans to Move Up to 1,500 Workers Out of Washington
