June saw the federal government’s largest monthly budget deficit to date as coronavirus relief programs exploded and tax revenue was slashed by millions of job losses.
The Treasury Department said Monday that the deficit hit $864 billion last month, an amount that surpassed most annual deficits in the nation’s history. The gap for the entire previous fiscal year was $984 billion. The previous monthly deficit record was April with $738 billion.
As stimulus spending has soared the budget deficit hit $3 trillion in the past 12 months through June, or 14 percent of gross domestic product.
The Congressional Budget Office has projected the annual deficit could total $3.7 trillion in the fiscal year that ends Sept. 30.
The June deficit was driven by various government relief programs, such as an additional $600 per week in expanded unemployment benefits and a Paycheck Protection Program that provided forgivable loans to businesses that could keep workers on their payrolls.