The US Capitol is seen amid reflections of the Russell Senate Office Building in Washington on January 29, 2020. (Photo: AP)
Washington (People's Daily) - The US Treasury Department said it plans to borrow nearly $3 trillion for Q2 2020 due to the economic impact of COVID-19. The figure is over twice the amount the Treasury borrowed for 2019.
The loan amount will bring the US government debt to $25 trillion, with a deficit is $744 billion for fiscal 2020.
An official Treasury Department statement released Monday said, “The increase in privately-held net marketable borrowing is primarily driven by the impact of the COVID-19 outbreak, including expenditures from new legislation to assist individuals and businesses, changes to tax receipts including the deferral of individual and business taxes from April – June until July, and an increase in the assumed end-of June Treasury cash balance.”
In addition to the loans, the Treasury expects to borrow another $677 billion for Q3 2020. For Q1, borrowing reached $477 billion. Since March 1, the national debt has reached $1.5 trillion, or 6.4 percent, to $24.9 trillion.
Since the pandemic struck the US, Congress has passed several economic stimulus measures to mitigate economic impact. With over $3.5 trillion in appropriations and another round of bailouts expected soon, the budget deficit is expected to grow.