U.S. Budget Deficit Hits All-Time High in February

The United States public budget deficit hit an all-time high in the five months to February at $1.05 trillion, the Associated Press (AP) reported.

The surge in budget deficit is attributed to the increase in governmental stimulus spending to help the economy recover from the impact of the coronavirus pandemic.

Between October 2020 and February 2021, the deficit rose by 68% compared with $624.5 billion in the same period of the previous year, as data by the U.S. Department of the Treasury showed on Wednesday.

During the five-month period, public revenues rose by 5.1% to $1.44 trillion, while expenditure increased by 24.7% to $2.48 trillion.

Last month, deficit registered $310.9 billion, compared with $236.3 billion in February 2020.

The previous record for the budget deficit in a five-month period was $652 billion, which was seen in 2010 amid increased spending to stimulate recovery from the 2008 global financial crisis.