US posted smallest monthly deficit in 2 years in December
WASHINGTON (AP) — The federal government last month posted its smallest monthly budget deficit in two years. That was thanks to a rebounding economy that helped boost tax receipts, coupled with slower spending as some COVID relief programs ended.
The Treasury Department reported that the December deficit of $21.3 billion was the smallest monthly deficit since a $13 billion shortfall in December 2019.
That was before the COVID pandemic hit in the U.S. and pushed millions of people out of work, sending the economy into a short but steep recession.
For the first three months of this budget year the government has recorded a deficit of $377.7 billion, 30.1% below the same period a year ago.