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The U.S Federal Budget

For more information, see these CBO publications: The United States is facing significant and fundamental budgetary challenges. The federal government's budget deficit for fiscal year 2011 was $1.3 trillion; at 8.7% of gross domestic product (GDP), that deficit was the third-largest shortfall in the past 40 years. (GDP is the sum of all income eamed in the domestic production of goods and services. In 2011, it totaled $15.0 trillion.) the The Budget and Economic Outlook: An Update In 2011, federal spending (outlays) exceeded 24% of GDP, the third-highest level in the past 40 years, while federal revenues were just over 15% of GDP, the third-lowest level during that period. If economic conditions improve, spending will decline relative to GDP and revenues will rise. But even so, under current policies, a large gap between spending and revenues will persist. CBO's 2011 Long-Term Budget Outlook U.S. Annual budget deficits occur when spending exceeds revenues; the government must borrow to cover such a shortfall. Federal debt held by the public is the total value of outstanding Treasury bills, notes, bonds, and other debt instruments (including Treasury securities held by the Federal Reserve) that have accumulated over time to finance the government's activities. Reducing the Deficit: Spending and Revenue Options FEDERAL At the end of fiscal year 2011, debt held by the public amounted to $10.1 trillion, or 67% of GDP. Another $4.6 trillion in Treasury securities were held by other federal government accounts, representing amounts that one part of the government (mostly the Social Security Administration) had lent to another (the Treasury). An Analysis of the President's Budgetary Proposals for Fiscal Year 2012 BUDGET Net Interest 1.5% of GDP $227 billion Social Corporate Security 4.8% of GDP Income Taxes 1.2% of GDP $181 billion S725 billion Defense 4.7% of GDP $700 billion Mandatory Spending Discretionary Spending Spending Revenues Medicaid Social 13.5% of GDP 1.8% of GDP $275 billion Individual 5.5% of GDP In 2011, the U.S. government received Income Taxes 7.3% of GDP $1.1 trillion 9.0% of GDP Insurance Taxes $2.0 trillion $1.3 trillion In 2011, the U.S. government spent $3.6 trillion on a range of activities and programs $819 billion $2.3 trillion in revenues Nondefense 4.3% of GDP $646 billion Medicare Consists of payroll taxes that fund social insurance programs, primarily Social Security and Medicare's Hospital Insurance program 3.2% of GDP $480 billion Other 1.4% of GDP $211 billion Other 3.6% of GDP $545 billion Consists of excise taxes, estate and gift taxes, customs duties, and miscellaneous receipts Consists of spending on programs related to health, income security, education, veterans' benefits, transportation, and other activities Consists of spending on unemployment compensation, federal civilian and military retirement, veterans' benefits, the earned income tax credit, food stamps, and other programs $3.6 trillion Mandatory spending Discretionary spending Net Interest Revenues Amount of spending by the federal Consists of the government's Funds collected from the government in fiscal year 2011 Consists primarily of benefit Consists of spending that interest payments on debt public that arise from the programs for which the lawmakers control through held by the public, offset $2.3 trillion government's exercise of its sovereign or FACTS about the BUDGET Congress sets eligibility rules annual appropriation acts by interest income the Amount of revenues received by the and benefit formulas government receives governmental powers federal government in fiscal year 2011 30 THE FEDERAL BUDGET 1971-2011 25 (Percentage of GDP) 20 15 10 Annual Deficit or Surplus = Revenues - Outlays To fund government spending in years of deficits, the government borrows from individuals, businesses, or other countries by selling them Treasury securities. 1971 1976 1981 1986 1991 1996 2001 2006 2011 21% 18% 8.7% 38% 67% Revenues as a share Debt held by the Debt held by the Spending as a share of GDP, on average, Annual deficit in 2011 as a share of GDP, the third-highest level in the past 40 years of GDP, on average, public as a share of GDP, on average, over the past 40 years public as a share of GDP at the end of 2011, DEFICITS and over the past 40 years over the past 40 years the DEBT the highest level in the past 40 years 70 67% THE U.S. DEBT 60 1971-2011 (Percentage of GDP) 50 48% 45% 40% 40 37% 32% 30 28% 27% 26% Debt 20 Debt held by the public is roughly equal to the sum of annual deficits and surpluses. Other factors, such as borrowing to fund student loans and other federal credit programs, can also affect debt held by the public. 10 1971 1976 1981 1986 1991 1996 2001 2006 2011 Authors: Jonathan Schw abish and Courtney Griffi th Source: Congressional Budget Offi ce All of the numbers in this figure are for federal fiscal years, which run from October 1 to September 30. CBO

The U.S Federal Budget

shared by youcom on Jan 24
The U.S is facing significant budget challenges and understanding that can be confusing. This infographic breaks down the U.S budget through U.S spending and revenue and explains the U.S spending dile...




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