Federal Government Spending Nearly Twice as Much As Its Taking In
Viacheslav Lopatin/Shutterstock.com
By
Frank Konkel
For the 14th straight month, the federal government spent more money than it received through taxes.
Two months into fiscal 2021, the federal government has spent nearly twice as much money as it has taken in through revenue after posting a 14th consecutive month of deficit spending.
According to the Treasury Department spending data released Dec. 10, the federal government ran a $145 billion deficit in November, driven heavily by spending on Social Security benefits, health care and national defense. Combined with October’s $284 billion deficit, the federal government has spent $887 billion in fiscal 2021—nearly twice the $457 billion it has captured thus far through taxes and other forms of revenue.
The government’s deficit spending follows a record-breaking fiscal 2020, wherein agencies combined to spend a record $6.5 trillion, with a total deficit of $3.1 trillion. A sizable portion of spending in late fiscal 2020 was driven by spending on coronavirus relief packages and some decreases in collected revenue. Congress is currently considering another COVID-19 relief bill worth more than $900 billion.