The Treasury Department on Tuesday said that the federal government ran a historic $738 billion deficit in April.
The shortfall, which reflects the effects of the coronavirus pandemic, is about 3 times as large as the second-largest monthly deficit on record. It is larger than the federal deficit for all of fiscal year 2017, which was $665 billion.
Outlays for the month totaled nearly $1 trillion, an increase of $604 billion over April 2019.
Revenues were also lower last month since tax-filing season has been delayed until July 15. Receipts came in at $242 billion, compared to the more than $500 billion that was collected in April 2019.
The federal government begins its fiscal year Oct. 1. So far, it has amassed a $1.4 trillion deficit in 2020. The annual deficit for fiscal year 2019 was $984 billion.
The Treasury report comes as House Democrats release their “phase four” coronavirus relief bill, which is projected to cost $3 trillion. A vote on the bill is expected Friday, but its fate is uncertain in the Senate.
Senate Republicans flatly rejected a $3 trillion coronavirus aid package House Democrats introduced Tuesday and said they’ll wait to decide whether more legislation is necessary.
