U.S. Records $144 B Budget Deficit in December

The United States public budget deficit registered $144 billion during December of 2020, according to data by the U.S. Department of the Treasury released on Wednesday.

The budget deficit compared with about $13 billion for the same period of 2019.

It is worth noting that the surge in the deficit is attributed to the increase in government spending and stimulus measures that aim to curb the effects of the Coronavirus pandemic on the American economy.

Meanwhile, tax revenues increased by 3% in last month to $346 billion from $336 billion in December 2019.

More spending is expected as the new administration takes over on January 20, however, the Democrats are likely to raise taxes, which could lessen the widening of the gap between public expenditure and revenue.