The Us Budget Deficit Shrank to $217 Billion in February, as the Conclusion of the Stimulus Programme Slowed Debt Growth

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After the end of most government stimulus, the US budget deficit is expected to decline dramatically this year.

The numbers: The US budget deficit in February was $217 billion, down from $311 billion the previous month, showing slower growth in government debt following the end of the pandemic-induced governmental stimulus.

Important information: The Treasury Department reported Thursday that spending in February was $506 billion, down from $559 billion a year ago.

Tax revenue increased to $290 billion from $248 billion the previous year.

The deficit was $476 billion in the first five months of this fiscal year, compared to $1.01 trillion the previous year.

The fiscal year runs from October 1 to September 30.

stimulus check & Stimulus Programme & U.S. budget (2)
The Us Budget Deficit Shrank to $217 Billion in February, as the Conclusion of the Stimulus Programme Slowed Debt Growth

Big picture: The government deficit is expected to plummet as the big stimulus program expires. During the worst of the pandemic, the government spent trillions of dollars to prop up the economy, but most of the stimulus has worn off.

For the first time, the overall national debt has topped $30 trillion.

The US budget outlook, according to Federal Reserve Chairman Jerome Powell, is unsustainable in the long run, but the deficit has been growing for years and there’s little sign that Washington is going to drastically decrease it.

After the latest inflation report, the yield on the 10-year Treasury note TMUBMUSD10Y, 1.969 percent soared above 2% once more. In the last year, the cost of living in the United States has increased by 7.9%.

Borrowing will become more expensive as government debt yields rise.

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