US reports record Rs18,190b budget deficit in April

WASHINGTON: The United States on Tuesday reported a record $738 billion (Rs18,190 billion) budget deficit in April as an explosion in government spending and a shrinking of revenues amid the novel coronavirus pandemic pushed it deeply into the red.

The Treasury Department said the budget deficit in April was the first to reflect the enormity of government spending that has been authorised to try to mitigate the economic impact of the crisis. The previous record budget deficit for any month was $235 billion in February 2020.

Until recently, most of the country was under strict lockdown orders and many businesses were shuttered to try to contain the spread of the virus, which has killed more than 80,000 people in the United States.

“They really are striking numbers that I didn’t think I would ever see,” a senior US Treasury official told reporters when asked about the monthly budget figures.

The fiscal year-to-date deficit surged to $1.48 trillion compared to a $531 billion deficit in the comparable period in 2019, blasting past the previous monthly deficit record of $870 billion in April 2011.

The US Congress approved a $2.3 trillion rescue package to deal with the crisis on March 27 and has since added to it, taking total emergency relief spending to help insulate individuals, families, businesses and state and local governments to around $3 trillion.