The US Treasury Department said on Wednesday that the government in the United States recorded a budget deficit of 163 billion dollars last January, a high and unprecedented level on a monthly basis, with a jump of 130 billion dollars compared to the deficit recorded in the same period last year, as a package was distributed New direct payments to individuals.
Revenues rose 3% in January compared to the same period a year ago to $ 385 billion, while spending increased by 35% to $ 547 billion.
Both revenue and spending reached unprecedented levels in the previous January.
For the first four months of fiscal year 2021, the deficit increased 89% to $ 736 billion, as revenues rose 1% to $ 1.19 trillion, while spending jumped 23% to $ 1.92 trillion.
Revenues, spending, and the deficit since the start of the year have all reached unprecedented levels.
The growth in the rate of spending came as the US government approved a second stimulus package last December, to help families and companies deal with the repercussions of the Covid-19 pandemic.
In the context, the US Congressional Budget Office warned two days ago that increasing the federal minimum wage in the United States from 7.25 dollars an hour to 15 dollars within 5 years could increase the US budget deficit by 54 billion dollars over the next decade.
The Budget Office also expects that an increase in the minimum wage will result in the elimination of 1.4 million additional jobs, which could lead to an increase in government spending and represent political obstacles.
On the other hand, the Budget Office believes that increasing the minimum wage could lift nearly 900,000 Americans out of poverty.