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.

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