Federal Taxes, Spending and Deficit All Set Records in First Half of FY2021

By Terence P. Jeffrey | April 26, 2021 | 12:15am EDT
(Photo by Chip Somodevilla/Getty Images)
(Photo by Chip Somodevilla/Getty Images)

(CNSNews.com) - Federal taxes, spending and the federal deficit all set records in the first six months of fiscal 2021 (October through March), according to the Monthly Treasury Statement.

Federal taxes climbed to a record $1,703,949,000,000 in the October-through-March period, while federal spending climbed to $3,410,194,000,000.

The gap between the record federal tax collections and the record federal spending in the October-through-March period resulted in a record federal deficit of $1,706,245,000,000.


When the October-through-March deficit numbers for previous fiscal years are adjusted for inflation into constant March 2021 dollars (using the Bureau of Labor Statistics inflation calculator), the second-highest deficit for the first six months of the fiscal year was in 2009. That year, the October-through-March deficit hit $1,191,458,980,000 in constant March 2021 dollars.

The highest October-through-March federal spending before this year took place in fiscal 2009, when the federal government spent $2,424,053,730,000 in constant March 2021 dollars.

 

The highest tax collections in the October-through-March period before this fiscal year was last fiscal year. In the first six months of fiscal 2020, the federal government collected $1,645,524,310,000 in taxes in constant March 2021 dollars.

This year’s October-through-March spending of $3,410,194,000,000 was up $1,001,598,370,000 (or 42 percent) from last year’s $2,408,595,630,000 in spending (in March 2021 dollars) for that period.

The business and economic reporting of CNSNews.com is funded in part with a gift made in memory of Dr. Keith C. Wold.

 

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