Budget Deficit Totals Hit $735B through January

Headline Roundup February 10th, 2021

The Treasury Department reported Wednesday that the U.S. budget deficit reached $735.7 billion in the first four months of the fiscal year, which began Oct. 1. This year's deficit, which comes amid a recession induced by the COVID-19 pandemic, cut into tax revenues, while relief measures caused outlays to skyrocket. The deficit is 89% higher than the $389.2 billion deficit run up in the same period for the previous fiscal year. The deficit totaled for the month of January hit a record of $182.8 billion; one of the largest spending categories last month included $139 billion for another round of individual $600 stimulus checks as part of the $900 billion relief measure passed in December. President Joe Biden is also pushing for another $1.9 trillion relief measure that would provide a round of $1,400 payments.

The story received coverage from across the political spectrum. Outlets from all sides highlighted the details of the deficit, and some provided analysis in regard to stimulus checks and their potential impact on the budget deficit.

Budget Deficit Totals Hit $735B through January

From the Right
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For the first third of the 2021 fiscal year, the national deficit jumped to $736 billion as coronavirus spending took its toll on the federal government, the Treasury Department announced Wednesday.

The large sum is roughly 89% higher than the same four-month period in 2020, representing the time before COVID-19 reached the United States. January 2021 added roughly $163 billion to the deficit, the majority of which came from Social Security, health expenditures, and income security payments.

In the four months combined, the government spent roughly $435 billion on income...

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From the Left
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The U.S. federal budget deficit widened in January to about five times the year-earlier level, reflecting spending on pandemic relief payments approved by Congress during the prior month.

The gap increased to $162.8 billion last month, from $32.6 billion in January 2020, according to a Treasury Department report Wednesday. In the first four months of the fiscal year that began in October, the deficit amounted to $735.7 billion -- a record for the period -- compared with $389.2 billion a year earlier, before the coronavirus struck. The report, the first...

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From the Center
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The U.S. government posted a budget deficit of $163 billion in January, a record high for the month and a $130 billion jump from the deficit in the same month last year, as a new round of direct payments to individuals were distributed, the Treasury said on Wednesday.

Receipts for January rose 3% from the year-earlier period to $385 billion, while outlays grew 35% to $547 billion. Both receipts and outlays were record highs for January. For the first four months of the 2021 fiscal year, the deficit rose 89%...

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