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Tax & Spend

US Budget Deficit Plunges to $1.38 Trillion as Pandemic Aid Unwinds

  • Deficit drops by most in US history, according to US Treasury
  • Gap narrows second year after hitting a record amid Covid-19
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The US budget deficit fell by a record in the 2022 financial year, a second straight drop that reflects the drying up of Covid-related aid spending alongside a surge in revenues propelled by wage and employment gains.

The deficit for the fiscal year through September narrowed to $1.38 trillion, from a revised $2.78 trillion the previous year, according to US Treasury Department data released Friday.