How much did the US deficit increase in June 2020 compared to June 2019?

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The US Deficit Saw a Record Increase in June 2020 Compared to the Previous Year

The United States deficit in June 2020 experienced a dramatic surge, reaching US$864 billion, a stark contrast to the US$8 billion deficit recorded in June 2019. This unprecedented rise was primarily driven by extensive government rescue payments implemented to support businesses and households grappling with the economic fallout from the coronavirus pandemic. The scale of this increase significantly surpassed previous records, highlighting the substantial fiscal response undertaken by the US government during this period.
Record-Breaking June Deficit Fueled by Pandemic Relief

The deficit for June 2020 stood at US$864 billion, representing a monumental leap from the US$8 billion deficit observed in June 2019. This figure far exceeded the prior record of US$234 billion, which was set in February 2009 during the global financial crisis. The surge in the deficit was a direct consequence of increased government outlays, which climbed to US$1.1 trillion in June 2020, coupled with a decline in government receipts during the same month.
Small Business Administration Outlays Significantly Increased

A substantial contributor to the widening deficit was a significant increase in budget outlays by the Small Business Administration (SBA). Specifically, SBA outlays rose by US$511 billion, predominantly directed towards the Paycheck Protection Programme (PPP). These payments were a critical component of the broader US$2.2 trillion CARES Act, a legislative package designed to provide economic relief to a wide range of entities and individuals affected by the pandemic.
Broader Fiscal Impact and Future Considerations

The funding gap for the first nine months of the fiscal year saw a substantial increase of 267 per cent compared to the corresponding period in the previous year, reaching a total of US$2.74 trillion. Beyond the PPP, weekly payments of US$600 were disbursed to millions of unemployed individuals, amounting to US$171 billion thus far. The Treasury Department had anticipated borrowing a record US$3 trillion during the April-June period to fund these relief efforts, and further expenditures related to PPP loan forgiveness are expected in the coming months. Discussions are also underway regarding new aid programmes that could extend unemployment benefits, which would likely contribute further to the deficit.

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How much did the US deficit increase in June 2020 compared to June 2019?

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