"Today's joint budget statement is further evidence that America's economy is in the midst of a recovery," Treasury Secretary Janet Yellen said, crediting the huge American Rescue Plan stimulus package approved early this year for the deficit's shrinking.
Government outlays increased $266 billion to $6.8 trillion in the fiscal year just ended, partly due to ongoing spending from other massive stimulus bills passed in 2020, when the pandemic was at its worst.
But Yellen cautioned that "while the nation's economic recovery is stronger than those of other wealthy nations, it is still fragile."
She said passing additional social and infrastructure spending measures proposed by President Joe Biden "will grow the economy, help workers and families and strengthen our nation's long-term fiscal outlook."
Total federal borrowing increased by $1.3 trillion during to $22.3 trillion, the report said.