US budget deficit hits $2.77 trillion in 2021, 2nd highest

By MARTIN CRUTSINGER
AP Economics Writer

WASHINGTON (AP) — The U.S. budget deficit totaled $2.77 trillion for 2021, the second highest on record but an improvement from the all-time high of $3.13 trillion in 2020. The deficits in both years reflected trillions of dollars in government spending to counteract the devastating effects of a global pandemic. The Biden administration said Friday that the 2021 deficit, for the budget year that ended Sept. 30, was $360 billion lower than 2020 as a recovering economy boosted revenues, The biggest deficit the federal government recorded had been a shortfall of $1.4 trillion in 2009 during the Obama administration as the government spent heavily to lift the country out of a severe recession following the 2008 financial crisis.