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U.S. budget deficit hits record high for March as aid payments swell outlays

FILE PHOTO: U.S. currency is seen in this picture illustration taken March 6, 2020. REUTERS/Mike Segar/Illustration/File Photo

WASHINGTON (Reuters) – The U.S. government posted a March budget deficit of $660 billion, a record high for the month, as direct payments to Americans under President Joe Biden’s stimulus package were distributed, the Treasury Department said on Monday.

The deficit for the first six months of the 2021 fiscal year ballooned to a record $1.706 trillion, compared to a $743 billion deficit for the comparable year-earlier period. The first six months of fiscal 2020 largely did not include emergency pandemic spending to counter the coronavirus-related lockdowns that started in March 2020.

The March deficit, which compared to a year-earlier deficit of $119 billion, included receipts of $268 billion and outlays of $927 billion – both record highs for that month.

A Treasury official said the March outlays were further increased by $339 billion in direct payments of $1,400 that were sent to many individuals under Biden’s American Rescue Plan Act that was enacted last month.

More funding from the $1.9 trillion stimulus package will roll out in coming months, the official said, likely keeping outlays elevated.

For the first six months of fiscal 2021, outlays were a record $3.410 trillion, while receipts were $1.704 trillion, the Treasury said. Total direct payments in the six-month period came to $487 billion, including those from a year-end stimulus package passed under former President Donald Trump, the Treasury official said.

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