By Kate Davidson 

WASHINGTON -- The U.S. budget gap widened in the first seven months of the fiscal year, as federal spending continued to outpace rising tax receipts while the nation recovers from the economic fallout from the Covid-19 pandemic.

The government ran a $1.9 trillion deficit from October through April, a record for the seven-month period and a 30% increase from a year earlier, the Treasury Department said Wednesday. Outlays rose 22%, to a record $4.1 trillion, driven by higher safety-net spending such as jobless benefits and nutrition assistance, as well as Covid-19 relief programs including emergency small business loans and stimulus checks.

John McCormick contributed to this article.

(END) Dow Jones Newswires

May 12, 2021 14:14 ET (18:14 GMT)