The federal budget deficit came to $658 billion in March, the Congressional Budget Office announced Thursday.
One of the largest monthly totals on record, behind only June and April of last year, the deficit was driven in part by the distribution of stimulus checks worth as much as $1,400 per person to millions of Americans, as authorized by the American Rescue Plan Act. The Treasury Department reported that as of April 1, it had made more than 130 million Economic Impact Payments worth roughly $335 billion.
In the first six months of fiscal year 2021, which began last October, the deficit hit $1.7 trillion. That’s nearly $1 trillion more than the deficit recorded in the same period the year before, most of which was before the pandemic took hold. Outlays were 45% higher, due largely to three pandemic-related programs: refundable tax credits, unemployment benefits, and the Paycheck Protection Program for small businesses.
The deficit will hit a record $3.4 trillion this fiscal year, according to the Committee for a Responsible Federal Budget, surpassing the previous record of $3.1 trillion set last year.
