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Deficit rises to nearly $2.1T

Deficit rises to nearly $2.1T
© Greg Nash

The federal deficit in May rose to nearly $2.1 trillion over the first eight months of fiscal 2021, according to data from the Treasury Department released Thursday.

Spending from October through May totaled $4.67 trillion, up from the $3.89 trillion in the same period a year ago.

Meanwhile, tax revenues for the first eight months of the fiscal year totaled $2.6 trillion, comparable to the same time period last year.

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In May alone, the deficit was $132 billion, down from the same time a year ago, according to the Treasury Department. Federal spending last month reached $596 billion, while revenue climbed to just $464 billion.

Spending contributed to benefits from President BidenJoe BidenSchumer vows to advance two-pronged infrastructure plan next month Biden appoints veteran housing, banking regulator as acting FHFA chief Iran claims U.S. to lift all oil sanctions but State Department says 'nothing is agreed' MORE’s $1.9 trillion COVID-19 relief package continuing to be paid out, according to Reuters.

Deficit spending for fiscal 2020 spiked to a record $3.1 trillion. Deficit spending is likely to be a hot topic as Biden moves ahead with other spending proposals outside of the pandemic.

The president released his $6 trillion budget proposal late last month, with the deficit projected to reach $3.6 trillion this year before dropping to $1.8 trillion in 2022. In following years, the deficit would fall between $1.3 trillion and $1.6 trillion.