After the United States government gave out a substantial amount of financial aid last year due to the pandemic, the country’s budget deficit showed signs of improvement in June 2021, according to media reports quoting the official data released on Tuesday.
The budget deficit, which now stood at a value of $174 billion, saw a decrease of 80%, in comparison to June 2020, when the pandemic’s economic impacts were at one of the highest peaks of last year, according to reports from AFP citing statements from the United States Treasury Department, which is headed by secretary Janet Yellen.
At the peak of America’s economic struggle amid the pandemic, a payout of $511 billion was directed towards the Small Business Administration, which was tasked to financially assist the struggling businesses through the grants and loans released by the United States authorities.
However, the recent data suggests that the amount saw a sharp decline and ended up at a value of $31 billion this year.
The deficit in the first nine months of this fiscal year saw a plunge of about 18% in comparison to the same time frame of 2020. It dipped to just over $2.2 trillion from the record of $2.74 billion, according to reports from AFP quoting statements from the United States Treasury Department.
Between October 2020 and June 2021, the government receipts and outlays hit new records as businesses showed signs of improvement and relief even though the government continued to provide economic assistance, according to reports from AFP.
US President Joe Biden, who took over the White House in January 2021 from former President Donald Trump, delivered on his vow to provide continued economic assistance to struggling businesses by passing a hefty stimulus package earlier this year.