What is the national deficit of US ?
In fiscal year (FY) 2024, the federal government encountered a national deficit of $1.06 trillion as a consequence of its expenditures surpassing its revenues. This deficit arises when the government's spending exceeds the amount it collects.
1,064,591,496,342
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Fiscal year-to-date (since October 2023) total updated monthly using the Monthly Treasury Statement (MTS) dataset.
US Deficit By Year
| Fiscal Year | Record Date | Total Deficit |
|---|---|---|
| 2024 | 2024-03-31 | $-1,064,591,496,342 |
| 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 |
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.