By Dan Burns

(Reuters) – In fiscal 2021 the U.S. government deficit was $2.772 trillion. This is less than the record amount of the preceding year, but it still reflects a second year of huge spending to assist households and businesses in the aftermath coronavirus pandemic.

In fiscal 2020, the United States had a deficit amounting to $3.132 trillion. This was when the government began spending in an unprecedented manner in order to combat the pandemic. After last year’s severe recession, the United States saw an increase in economic activity thanks to the release of COVID-19 and the relief payments that were made to householders. This led to a $360 billion decrease in deficit.

Treasury Secretary Janet Yellen, in a statement she made with Shalanda Youth (acting head of the Office of Management and Budget), stated: “Today’s combined budget statement provides further evidence that America is in the midst of a revival.”

Treasury stated that the total receipts for fiscal 2019 was $4.046 trillion. That’s an 18% increase from fiscal 2020. The rise in income taxes, both individual and business, is due to an improvement economy.

Fiscal 2021 expenditures rose by $266 Billion, or 4.1%, at $6.818 Trillion. The increase was driven by the continued spending of legislation that was enacted in support of the economy during the pandemic.