The economic recovery has enabled the country to collect an additional $ 600 billion in tax revenue in fiscal year 2021.
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The US budget deficit narrowed in 2021, after reaching a record high in 2020 due to the COVID-19 crisis, and stands at $ 2,772 billion, thanks in part to higher tax revenues .
This represents $ 360 billion less than last year, and 12.4% of gross domestic product (GDP), against 15% in 2020, the Treasury Department announced on Friday.
It’s also better than expected, since the initial projections were for a deficit of 3.669 billion, when the half-way projections were 3’114 billion.
The economic recovery has indeed enabled the country to collect an additional 600 billion dollars in tax revenues – income and corporate taxes, in particular – during fiscal year 2021, which ended on September 30.
Between October 1, 2020 and September 30, 2021, 4,046 billion dollars entered the coffers of the American federal state, or 18.1% of GDP, against 16.3% in 2020.
“The increase in revenue in 2021 can be largely attributed to the increase in income for individuals and businesses,” the Treasury said in its statement.
Expenditures were 6,818 billion (30.5% of GDP), an increase of 266 billion dollars compared to 2020. These expenditures represent 30.5% of GDP, a smaller share than the 31, 3% last year.
In 2020, the economic crisis caused by COVID-19 had pushed the US deficit to an unprecedented level of 3.132 billion dollars.
It was even more than double the previous record, recorded in 2009, when, in the midst of a recession linked to the financial real estate crisis, it had climbed to 1.4 trillion dollars.
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