1 Minute Read by Reuters Staff (Reuters) – WASHINGTON, July 1 (Reuters) – Despite greater coronavirus aid spending, the US government’s budget deficit would shrink somewhat to around $3 trillion in fiscal 2021, according to the Congressional Budget Office, which cited a faster comeback in economic growth and tax revenues than previous predictions. According to the CBO’s latest predictions, GDP growth will reach 7.4 percent in 2021, taper to 3.1 percent in 2022, and 1.1 percent in 2023, based on fourth-quarter comparisons. Due to coronavirus aid programs and a sharp decline in economic activity following COVID-19 lockdowns, the fiscal 2020 budget deficit reached a new high of $3.129 trillion. (David Lawder contributed reporting.) Paul Simao edited the piece.)/n
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