US budget gap falls in 2021 to $2.8tn as economy recovers

WASHINGTON: In this file photo taken on September 28, 2021, US Treasury Secretary Janet Yellen speaks during a Senate Banking, Housing and Urban Affairs Committee hearing in Washington, DC. – AFP

WASHINGTON: The US budget deficit narrowed slightly in the past year as the economy recovered from the COVID-19 pandemic, falling $360 billion to $2.8 trillion, the government reported Friday. The result for the fiscal year ended September 30 was far better than expected a few months ago, but just shy of the record set in 2020 during the worst of the health crisis that shuttered businesses nationwide and caused millions of layoffs.

The improvement reflected a more than $600 billion increase in tax revenues as the economy was able to restart following the pandemic shutdowns, according to data from the Treasury Department and White House budget office. “Today’s joint budget statement is further evidence that America’s economy is in the midst…

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