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U.S. government budget ends fiscal year with a more than $3 trillion deficit


The U.S. Capitol in Washington, D.C., on Tuesday, Aug. 4, 2020.Amanda Andrade-Rhoades | Bloomberg | Getty ImagesEfforts to combat the coronavirus pandemic left the U.S. government submerged in red ink as its fiscal year came to a close.The final tally for the budget deficit in fiscal 2020 came to $3.13 trillion, more than triple last year’s shortfall of $984 billion and double the previous record of $1.4 trillion in 2009, courtesy of a stimulus package passed that year to battle the financial crisis.Most of the damage to this year’s budget came due to the CARES Act, a $2.2 trillion spending package that included extra unemployment compensation to workers displaced during the pandemic and forgivable loans to business as an incentive to retain workers.Receipts for the year came to $3.42 trillion against outlays of $6.55 trillion, the biggest of which came during June when the government spent $1.1 trillion, according to the Treasury Department.The fiscal year ended with government debt at just under $27 trillion, all but $6 trillion of which is held by the public.The cost to service all that debt for the year came to $522.8 billion, which actually was the lowest total since 2017. Low government bond yields, helped in part by the Federal Reserve, helped keep debt service costs lower.

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