Date post: | 15-Dec-2014 |
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The Federal Budget
A Graphical Primer
2008 Budget Forecast
• $2.902 trillion in total spending• 4.8% raw dollar increase over FY
2007 • $239 billion projected deficit• 2.0% raw dollar deficit reduction
over FY 2007• 929.8 billion in discretionary
spending
Where does discretionary spending go?
Expenditures
• Majority of discretionary expenditures for military / security
• Non-discretionary spending counts for almost 3/5 of the total budget
• Social security and emergency funding are considered “off-budget” spending
Where does the money come from?
Receipts
• Majority of receipts from individual income tax
• Corporate income tax receipts slightly more than ¼ of individual receipts
• Off-budget (i.e. social security) tax receipts total 674.1 billion
On-Budget Receipts and Expenditures since 1901
The Changing Budget
• On-budget spending hit 1 billion for the first time in 1917
• 10 billion in 1918• 100 billion in 1964• 1 trillion in 1995• 2 trillion in 2005• Revenue has exceeded expenditures
27 times since 1901• Revenue has exceeded expenditures
only 3 times since 1960
Budget & GDP
• Gross Domestic Product (GDP) is the total value of final goods and services produced in a year
• Budget is often discussed as a percentage of GDP
• Useful because inflation makes raw dollar amounts a deceptive indicator
Budget & GDP (1940-2008)
Budget & GDP
• As a percentage of GDP, expenditures average 20.4 % with standard deviation of 5.6
• Standard deviation and average are skewed because of extremely high WWII expenditures
• Disregarding WWII yields 19.6 % with StdDev of 2.8
• Receipts average 17.5 % with standard deviation of 2.4, since WWII did not affect revenue
National Debt
• The national debt reflects the tendency for budget expenditures to exceed receipts
• Debt rises during budget deficits• Total current outstanding debt
over 9 trillion dollars
National Debt since 1940
The Federal Budget
• To learn more about the federal budget, visit www.gpoaccess.gov/usbudget/
• All statistics gleaned from US government charts and tables
Note
The photos on slides 1 and 14 are licensed Creative Commons attribution, Slide 1 is
flickr memberwww.flickr.com/photos/pixelcore/
Slide 14 is www.flickr.com/photos/pling/