What caused the record US budget deficit in April?

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Record US Budget Deficit in April Driven by Unprecedented Spending and Revenue Shortfalls

The United States recorded a historic US$738 billion budget deficit in April, a figure largely attributed to a dramatic increase in government expenditure and a significant decrease in revenue, both direct consequences of the novel coronavirus pandemic. This unprecedented monthly deficit reflects the initial impact of substantial government spending authorised to cushion the economic fallout from the crisis.
Surge in Government Outlays for Pandemic Relief

Government spending in April saw an extraordinary surge of 161 percent, reaching US$980 billion compared to the previous year. A substantial portion of this, estimated at approximately US$600 billion, was directly allocated to coronavirus relief measures. This increase in outlays is largely due to the implementation of emergency relief packages, such as the US$2.3 trillion rescue package approved by Congress on March 27, which has since been expanded to around US$3 trillion in total emergency spending aimed at supporting individuals, families, businesses, and government entities.
Decline in Government Revenues

Concurrently, government receipts experienced a sharp decline, falling by 55 percent to US$242 billion in April compared to the same period a year prior. This reduction in revenue is primarily a result of the crisis-induced deferral of certain individual and business tax payments, originally due in April but postponed to July 15. Changes in tax laws enacted through recent legislation also contributed to this shortfall. Furthermore, the substantial rise in unemployment, with over 33 million Americans filing for benefits since March 21, has eroded the government's revenue base, particularly impacting taxes withheld from worker paychecks.
Unusual April Deficit Due to Tax Deferrals

April typically generates a budget surplus in the United States due to the deadline for tax payments on April 15. However, the pandemic necessitated the postponement of this deadline to July 15, disrupting the usual revenue inflow for that month. This deferral of tax payments, alongside other crisis-related factors, meant that April recorded a deficit, an occurrence that has been relatively infrequent in past years.

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What caused the record US budget deficit in April?

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