The U.S. government recorded its second largest budget deficit on record in fiscal year 2021, but it was down somewhat from 2020.

This year’s deficit was $2.77 trillion compared to $3.13 trillion last year, with both years reflecting massive government spending in response to the COVID-19 pandemic.

The Biden administration said the lower number was due to a recovering economy leading to increased tax revenues.

“Today’s joint budget statement is further evidence that America’s economy is in the midst of a recovery,” Treasury Secretary Janet Yellen said in a statement issued with the acting head of the Office of Management and Budget, Shalanda Young.

Before the fiscal 2020 record deficit, the previous record was $1.4 trillion in 2009 as the Obama administration spent heavily to try to lift the country out of the recession caused by the 2008 financial crisis.

Source: Voice of America