US budget deficit falls to $2.8 trillion

The US budget deficit for the past fiscal year, which runs until September 30, is $ 2.8 trillion (2.4 trillion euros), US Treasury Secretary Janet Yellen announced Friday.

The deficit is $360 billion smaller than a year ago and stands at 12.4 percent of gross domestic product (GDP), the most widely used measure of economic activity in a country.

The US government spent more than a year ago, partly due to President Joe Biden's trillion plans to avert the corona crisis, but more money also came in.

In particular, taxes yielded more, because more people are working than last year and companies are paying taxes again.

As a result, the budget deficit came in just slightly below the $3.1 trillion in 2020.

At the same time, the US government borrowed more.

The national debt rose by $1.3 trillion to $22.3 trillion.

That money was used, among other things, to reduce the budget deficit.

For the current fiscal year, Biden has foreseen a $6 trillion budget, which he plans to finance in part through higher taxes on corporations and wealthy people.

The focus would mainly be on investments in infrastructure, but expanding social security and reducing inequality are also spearheads of the president.