Saturday 12 September 2020 10:15 am

US budget deficit hits record $3tn due to coronavirus spending

The US budget deficit has reached a record high after topping $3tn (£2.3tn) as the government’s mass spending on coronavirus relief continues.

The treasury department said it spent more than $6tn in the first 11 months of its financial year, which included $2tn on Covid-19 programmes.

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It means the figure outpaces the $3tn it took from taxes and leaves a shortfall more than double the previous record set during the 2009 financial crisis.

The US was already on course to produce a deficit of more than $1tn this year, which was significantly larger than its usual standards.

However, spending aimed at cushioning the financial impact of coronavirus has blown those estimates out of the water.

The US is now set to run a full-year deficit of $3.3tn, according to predictions by the Congressional Budget Office.

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The shortfall is more than triple last year. The federal government’s financial year ends in September.

The agency said it expected total US debt to exceed $26tn.