The US records the largest reduction in the federal deficit in history

The deficit of the public finances of the United States was reduced by half in the fiscal year 2022 in relation to 2021, after a historical record registered two years ago due to the expenses for the pandemic.

The figure in red stood at 1.375 trillion dollars for the fiscal year that ended in September 2022, which is 1.4 trillion less than last year, for “the largest reduction in the federal deficit in history,” announced this Friday the US Treasury Department.

The fiscal deficit reaches equivalent to 5.5% of GDP of the world’s largest economy, compared to 12.3% the previous year.

“It is proof of our historical economic reactivation, driven by our vaccination effort (against Covid-19) and the aid plan” of the Democratic president Joe Bidencongratulated the Secretary of the Treasury, Janet Yellenit’s a statement.

Federal income in the period considered reached a historical record of 4,896 billion dollars, which implies an increase of 21%, said a Treasury official.

Meanwhile, expenses fell by 550,000 million dollars, or 8.1%, thanks to a reduction in expenses linked to Covid-19particularly those unemployment benefits and aid to small businesses. Total public spending reached 6.2 billion dollars.

The federal state debt increased by 2 trillion dollars in 2022 to 24.3 trillion, equivalent to 97% of GDP compared to 98.4% in 2021.