Why Are We Running a Budget Deficit?
Understanding the Concept of a Budget Deficit
A budget deficit arises when the government's expenses surpass its income during a specific time frame. This indicates that the government is spending more money than it is generating through revenue sources such as taxation and fees.
Key Points Regarding Budget Deficits
The Congressional Budget Office estimates that the U.S. federal government accumulated a deficit of $312 billion in February 2021. This represents a significant increase compared to previous years and highlights the growing concern surrounding the country's fiscal health.
A federal budget deficit occurs when government spending exceeds the revenue collected from taxes, fees, and investments. This imbalance can be caused by various factors, including economic downturns, increased government expenditure, or decreases in tax revenue.
According to the Treasury Department, the budget deficit from October 2020 through June 2021 reached almost $14 trillion, reflecting a 170% increase over the same period the previous year. This sharp rise is largely attributed to the economic fallout caused by the ongoing COVID-19 pandemic.
To access detailed data on budget deficits, visit FiscalDataTreasury.gov, where it is available for download in various machine-readable formats, enabling researchers and analysts to conduct in-depth analysis.
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