According to the latest monthly financial report released by the US Treasury on September 14, local time, the US budget deficit reached 170.6 billion US dollars in August, close to the market consensus estimate of 173 billion US dollars and down from 200.1 billion US dollars in the same period last year.
The total fiscal expenditure this year reached 439 billion US dollars, an increase of 3.7 per cent from 423.2 billion US dollars a year ago.
Although revenue has risen from $223.2 billion a year ago to $268.4 billion today, total spending in August is still 60% higher than income, and the trend of total spending higher than income will not change in the short term.
The growing spending is mainly due to the government's $93 billion unemployment benefit, which is second only to Social Security's $95 billion. This is followed by Medicare, defense, debt interest and other smaller expenditures that fall short of the volume of unemployment benefits.
According to the US fiscal report released in August, the total US fiscal deficit in the first 11 months of the current year rose to $2.711 trillion, a slight improvement from the $3,000bn deficit reported in the first 11 months of fiscal year 2020, with revenue up 17.7 per cent and expenditure up 4 per cent. Since the COVID-19 epidemic broke out in March 2020, the US government has had a budget deficit of an astonishing $5.1 trillion in the past 17 months.
Agencies are engaged in heated discussions about the final size of US infrastructure and the new fiscal stimulus package.
Zero hedging is expected to see a total deficit of $2.5 trillion this year, as there will be another surge in spending in the coming months. The upcoming trillions of budget spending bill could reach 20% of America's gross domestic product, but the final form of the plan has not yet been decided. One thing is certain: the United States will no longer be able to finance itself by taxes alone, which currently account for only 50% of the country's total budget deficit.