US fiscal deficit cut in half by 2022

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

The fiscal deficit thus reaches the equivalent of 5.5% of the Gross Domestic Product (GDP) of the world’s largest economy, compared to 12.3% the previous year.

“The largest reduction in the federal fiscal deficit in history is new proof that we are rebuilding the economy,” congratulated Democratic President Joe Biden in a televised address from the White House, three weeks before the November legislative elections. .

For its part, the Secretary of the Treasury, Janet Yellen, supported him in his assessments.

“It is proof of our historical economic reactivation, driven by our vaccination effort against Covid-19 and the aid plan,” Yellen congratulated herself in a statement, at a time when the United States is fighting against the highest inflation in 40 years ( 8.2% per year).

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

Although expenditures related to the pandemic fell, aid for student loans increased, the Treasury detailed.