US federal deficit to hit a record of $3.3 trillion

The United States federal deficit has projected to hit a record $3.3 trillion dollars. The federal government has added more than $2 trillion to fight the coronavirus pandemic and to hold the economy.

This deficit increment means that the federal debt will exceed annual gross domestic product next year.

This figure is more than triple the 2019 shortfall and more than double the levels experienced after the market meltdown and Great Recession of 2008-2009.

The recession has caused a drop in tax revenues. The income tax collection is 11 percent behind last year. The corporate tax collection is down by 34 percent.

The economy was shut down so that people could avoid Covid-19 infection. Due to the prohibition, US President Donald Trump has had to pump money for business subsidies, unemployment allowance, $1,200 direct payments to every citizen and other stimulus package to help hold the economy.