US budget deficit up 25.1% in first 2 months of budget year

WASHINGTON (AP) — The U.S. government’s deficit in the first two months of the budget year ran 25.1% higher than the same period a year ago, as spending to deal with the COVID pandemic soared while tax revenues fell. The Treasury Department reported Thursday that with two months gone in the budget year, the deficit totaled $429.3 billion, up from $343.3 billion in last year’s October-November period. The deficit — the shortfall between what the government collects in taxes and what it spends — reflected an 8.9% jump in outlays and a 2.9% decline in tax revenues.