The U.S. government spent more than $3.13 trillion than it collected in taxes in fiscal year 2020, borrowing the difference from investors in the U.S. and abroad, the Treasury Department said Friday.
At the same time, interest rates have plummeted. The yield on the 10-year Treasury is down 57 percent from the expiration of the last fiscal year.
Federal revenue from taxes, fees, and other charges totaled $3.42 trillion, a one percent decline from the 2019 fiscal year, due to the contraction of the economy as the pandemic and measures to fight its spread took hold. Most of the shortfall occurred after March, when large parts of the economy were brought to a halt in an attempt to arrest the spread of coronavirus.
The Trump administration’s budget, authored months prior to the pandemic, had projected revenues of $3.7 trillion, $286 billion higher than what the government collected.
Spending rose 47