budget deficit reduced to $1 trillion this year

Washington (awp/afp) – The budget deficit in the United States, which had reached levels not seen since the Second World War during the pandemic, will be reduced to some 1,000 billion dollars, according to an estimate by the Congressional Budget Office ( CBO) released Wednesday.

It had reached nearly 2.800 billion dollars last year due to the pharaonic budgetary expenditure of the federal government to keep the American economy afloat after the shock caused by the Covid-19 pandemic.

Although the federal deficit is shrinking drastically, it remains at a “significant level based on historical data” and is expected to increase over the next decade, CBO Director Phillip Swagel said in a statement.

The CBO projects the deficit will decline again next year, but then rise to 6.1% of gross domestic product in 2032, significantly higher than average deficits over the past 50 years, Mr. Swagel.

The federal deficit had hit a record high of over $3 trillion in fiscal year 2020 when the Covid-19 pandemic spread across the United States, forcing the government to take lockdowns and restrictions. activities.

To prevent the economy from plunging into a lasting recession, Donald Trump’s administration pushed Congress to pass more than $2 trillion in spending to help Americans, including boosting unemployment benefits and loans to small businesses. .

Congress then approved an additional $1.9 trillion emergency aid program, this time led by the Biden administration.

The CBO also warned that high inflation is likely to persist for the rest of 2022.

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