The federal deficit was $1.88 trillion through the first two-thirds of fiscal year 2020, the Treasury Department reported Wednesday, or 155% larger than the deficit was at the same point last year.
“That’s a record breaker,” said a senior Treasury official, referring to the year-over-year increase in the deficit.
The federal government’s response to the coronavirus pandemic was a huge factor in the increased deficit. Direct payment programs to businesses and individuals and increases in appropriations to certain agencies accounted for roughly $1.150 trillion of the deficit.
The jobs losses caused by the pandemic also decreased the amount of individual taxes paid by workers in May. The Treasury collected $170 billion in individual and payroll taxes last month, compared with $202 billion in May 2019, a decline of 32%. Overall, receipts declined 25% in May compared with a year ago.
Meanwhile, outlays increased 30% in May compared with the same month last year. Outlays by the Treasury jumped 67%, in part to combat the effects of the coronavirus, contributing to the increase. Outlays overall increased 92% in May when compared with the same month last year.
