How government budget is effected by covid-19
Answers
Answer:
The COVID-19 pandemic has brought shortages of many things, from ventilators in hospitals to hand sanitizer on store shelves.
Explanation:
Also in deficit is economic activity, as people are prevented from spending and working by stay-at-home orders. Tax revenue is in deficit, too, causing federal budget shortfalls of a scale not seen since World War II. Most states are in such dire financial straits that some politicians have even proposed letting them file for bankruptcy. At the federal level, the government budget deficit may be 17% of gross domestic product (GDP) in 2020, estimates the nonpartisan Congressional Budget Office (CBO), though it could well be higher. Deficits of consumption and production are guaranteed to produce deficits on the government’s balance sheet.