State and local governments are expected to face budget shortfalls due to rising healthcare costs and widespread unemployment rates due to the Covid-19 pandemic.
Governments may soon be forced to consider cutting spending allocations in other areas, such as education.
Macroeconomic influencers share their views on the Covid -19 impact.
Konstantina Beleli, an economist, shared an article on how the Covid-19 pandemic may impact government budgets at the state and local levels.
The article notes that government may be forced to cut budget allocations to areas such as education and infrastructure.
Lockdown measures and social distancing have led sharp decline in sales taxes, which is one of the biggest source of revenue for state governments.
The pandemic is expected to result in a budget shortfall of $650bn over the next three years, according to the Center on Budget and Policy Priorities (CBPP).
Education and infrastructure investments are expected to the worst affected due to the shortfall.
In other news, US Federal Reserve measures to support companies through the Covid-19 pandemic are drawing criticism, according to Edward Harrison, a banking and finance specialist.