What is the national deficit of US ?
In fiscal year (FY) 2025, the federal government encountered a national deficit of $-0.62 trillion as a consequence of its expenditures surpassing its revenues. This deficit arises when the government's spending exceeds the amount it collects.
$624,213,407,559.98
Share
The fiscal year (2025) is updated monthly based on the Monthly Treasury Statement (MTS) dataset.
The graph features an interactive graph that shows the US government deficit by year. Find out year-wise trends and gain valuable insights into the nation’s fiscal history at a glance.
USA Financial Data by Total Deficit
The table below presents a detailed breakdown of key financial data in the United States, organized by fiscal year. It includes the record date and total deficit, offering a comprehensive overview for analysis and reference.
| Fiscal Year | Record Date | Total Deficit |
|---|---|---|
|
2025
(Projected Data)
|
2024-11-30 | $-5,617,920,668,040 |
| 2024 | 2024-09-30 | $-1,832,815,989,074 |
| 2023 | 2023-09-30 | $-1,695,148,300,531 |
| 2022 | 2022-09-30 | $-1,375,388,552,955 |
| 2021 | 2021-09-30 | $-2,772,178,788,289 |
| 2020 | 2020-09-30 | $-3,131,917,248,888 |
| 2019 | 2019-09-30 | $-984,388,026,331 |
| 2018 | 2018-09-30 | $-778,996,251,866 |
| 2017 | 2017-09-30 | $-665,711,513,062 |
| 2016 | 2016-09-30 | $-587,411,769,636 |
| 2015 | 2015-09-30 | $-438,898,858,123 |
Highlights
- A budget deficit occurs when government spending exceeds revenue during a specific fiscal period.
- The federal government has experienced a budget surplus only four times in the last 50 years, with the most recent surplus occurring in 2001.
- To finance a deficit, the government borrows money by selling U.S. Treasury securities. The accumulation of this borrowing, along with the interest owed, contributes to the national debt.
Understanding the National Deficit
A budget deficit arises when the federal government spends more money than it collects in revenue during a fiscal year. For example, in FY 2024, the government spent $6.75 trillion while collecting only $4.92 trillion in revenue. This resulted in a deficit of $1.83 trillion, commonly referred to as deficit spending.
In contrast, when the government collects more revenue than it spends, it generates a budget surplus. This has occurred only four times in the last 50 years, with the most recent surplus in 2001.
Key Terms:
- Surplus: Revenue exceeds spending.
- Deficit: Spending exceeds revenue.
- Balanced Budget: Revenue equals spending.
Causes of Deficits and Surpluses
Economic Factors
The state of the economy plays a crucial role:
- During economic downturns, reduced income from individuals and businesses leads to lower tax revenues. At the same time, the government may increase spending on programs like unemployment benefits or stimulus packages.
- In periods of economic growth, higher incomes and corporate profits lead to increased tax revenue, which can reduce deficits or even create surpluses.
Legislative Decisions
Government spending decisions significantly impact the deficit:
- Legislation that increases spending on programs like Social Security, Medicare, and defense without a corresponding increase in revenue can widen the deficit.
- For instance, the COVID-19 pandemic saw revenue growth—from $3.5 trillion in 2019 to $4 trillion in 2021—but higher expenditures for healthcare and unemployment support resulted in record deficits.
The Relationship Between Deficit and Debt
Deficit vs. Debt
While the terms deficit and debt are related, they are not the same:
- Deficit: The annual shortfall between revenue and spending.
- Debt: The cumulative result of years of deficits, including interest owed on borrowed funds.
Financing the Deficit
To cover deficits, the government borrows money by issuing Treasury bonds, bills, and other securities. These are purchased by investors, both domestic and international. Over time, the interest owed on this borrowing adds to the national debt.
Why Deficits Matter
Understanding and addressing budget deficits is essential for economic stability. Persistent deficits can:
- Increase national debt, leading to higher interest payments.
- Reduce government flexibility to respond to future emergencies or invest in critical infrastructure.
- Impact national credit ratings, potentially raising borrowing costs.
On the other hand, targeted deficit spending during economic downturns can stimulate growth and provide essential support to citizens and businesses.
Everything you need to know about US Deficit
What Do You Mean By Budget Deficit?
When expenditure within a specific time period is more than receipts, a budget deficit emerges. The federal government ran a deficit in the fiscal year 2022 because it spent $6.27 trillion while only bringing in $4.90 trillion. Deficit expenditure is the amount, about $1.38 trillion in 2022, by which spending exceeds receipts.
How to Calculate Budget Deficit?
When total expenditures done by the government are reduced from the total revenue generated by the government in the year, it will give the budget deficit for that year. Mathematically, Budget Deficit = Total Expenditures by the Government − Total Income of the government.
What Are The Reasons behind Budget Deficit?
There are several reasons behind a budget deficit. These include government spending exceeding tax revenues, economic downturns reducing tax receipts, the need for stimulus during recessions, increased interest payments on debt, unsustainable entitlement programs, and ineffective revenue collection measures. External factors like wars or natural disasters can also contribute to budget deficits.
What Are The Various Types Of Deficit?
1. Primary Deficit: It is described as the gap between the annual budget deficit and the interest obligations on prior loans.
2. Fiscal Deficit: It takes into account the amount by which costs, excluding borrowings, overtake total revenues.
3. Revenue Deficit: It is described as the margin by which the overall revenue obtained exceeds the entire revenue spent. It shows that the income the government generates is insufficient to cover the costs.
How to differentiate between National Deficit and the National Debt?
The yearly gap that results when the government's spending exceeds its receipts during a certain fiscal year is referred to as the national deficit. It reflects the total amount of borrowing necessary to pay the deficit for that year. The national debt, on the other hand, is the entire sum of all previous deficits and indicates the ongoing obligation due by the government to its creditors throughout time.