The United States budget deficit was cut in half in 2022 compared to 2021 and after a historical record two years ago due to the Covid-19 health crisis.
The deficit stood at $1.375 billion for the 2022 fiscal year that ends in September, or $1.4 trillion less than last year, “the largest reduction in the federal deficit in United States history,” the Department of the Interior announced on Friday. Treasure.
It now represents 5.5% of the Gross Domestic Product (GDP) of the world’s largest economy compared to 12.3% last year.
“This is proof of our historic economic recovery, fueled by our vaccination effort and President Biden’s support plan,” Treasury Secretary Janet Yellen said in a statement.
Historical record of tax revenue
The collection in the year, coming from income taxes – by far the main resource of the federal state – and corporate taxes, reached a historical record of 4,896 million dollars, 21% more, said a Treasury official.
Spending fell by 550 billion or 8.1% due to the reduction in spending related to Covid-19, in particular unemployment benefits and aid to small businesses.
However, they amount to 6,272,000 million dollars, more than the planned budget forecasts, due to the increase in interest rates that make the immense US debt more expensive and the measures of the Biden administration to reduce the burden of student loans.
On the federal borrowing side, US debt increased by $2 trillion in 2022 to $24.3 trillion, or 97% of US GDP (up from 98.4 in 2021).
Source: BFM TV
