The US Treasury Department has announced a budget deficit of $737.9 billion in April thanks to spending measures put in place to battle the economic effects of the ongoing coronavirus pandemic.
Emergency relief spending by the US government has reached around $3 trillion, with $2.3 trillion approved in late March by Congress for a relief package for US citizens.
The latest deficit figure is another bad sign for the US economy as April is typically a month which sees a surplus, thanks to US citizens filing their taxes on April 15. However, that filing deadline was extended into the summer because of the pandemic.
Over the past 66 years, the Treasury Department has only posted a deficit in April 15 times. By comparison, it announced a surplus of $160.3 billion for the same period last year.
The US economy lost over 20 million jobs in April, and while the current unemployment rate across the country stands at nearly 15 percent, some experts predict that figure will rise above 20 percent over the summer.
The record deficit signifies the US is headed into uneasy economic territory. With more than 33 million people collecting unemployment benefits and most businesses remaining closed due to lockdown orders, the federal government is not only spending more than usual, but working from a place where almost no revenue is being raised through taxes.