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U.S. posts $284.1 billion budget deficit for October

The Treasury Department reported Thursday that the federal government ran up a record October deficit of $284.1 billion, nearly double the red ink of the same month a year ago, as revenues declined while spending to deal with the impact of the coronavirus soared.

U.S. Treasury Department building on Pennsylvania Avenue in Washington, D.C.
U.S. Treasury Department building on Pennsylvania Avenue in Washington, D.C.
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WASHINGTON — The U.S. is starting the 2021 budget year the way the old year ended, with soaring deficits.

The Treasury Department reported Thursday that the federal government ran up a record October deficit of $284.1 billion, nearly double the red ink of the same month a year ago, as revenues declined while spending to deal with the impact of the coronavirus soared.

The October deficit was almost double the $134.5 billion deficit logged in October 2019. It smashed the previous October record of a $176 billion deficit set in 2009, when the government was spending heavily to lift the country out of a deep recession caused by the 2008 financial crisis.

The deficit for the 2020 budget year, which ended Sept. 30, totaled a record $3.1 trillion, breaking the old mark for an annual deficit of $1.4 trillion set in 2009.

The Congressional Budget Office is projecting that this year’s deficit will surpass the 2020 mark, hitting $3.3 trillion.