The Federal Budget2

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The Federal Budget2

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

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