Every month the U.S. Treasury releases data on the federal budget, including the current deficit or surplus. The following contains budget data for December 2024, the third month of fiscal year (FY) 2025.

When the federal government spends more than it takes in, it has to borrow money to cover that annual deficit. And each year’s deficit adds to our growing national debt. Historically, the largest deficits were caused by increased spending around national emergencies like major wars or the Great Depression .

Feb 15, 2024 · The U.S. government has run a deficit since 1970 in all but four years (1998–2001) and annual deficits are projected to increase from now to 2054. What Is the Federal Debt? The debt is the total amount of money the U.S. government owes.

Jan 15, 2021 · Recently, the Congressional Budget Office (CBO) highlighted 83 ways to reduce the deficit and improve our fiscal outlook — including options to cut spending and raise revenues. Solutions to Reduce the National Deficit

Feb 2, 2023 · Creating a new payroll tax of 2 percent on earnings, paid by employees, would reduce the federal deficit by nearly $2.3 trillion over the next 10 years. Eliminate or limit itemized deductions. When filing for taxes, taxpayers can choose a standard deduction or itemize and deduct certain expenses.

Aug 21, 2024 · The primary deficit is the difference between government revenues and spending, excluding interest payments. Learn more about the U.S. primary deficit.

Mar 25, 2024 · 76 Options for Reducing the Deficit The nonpartisan Congressional Budget Office released 76 policy options — spanning both revenues and spending — that could help bring the country’s rising debt under control.

Jul 23, 2024 · By 2054, the debt would rise to 166% of GDP if current laws remain the same. That level of debt would represent uncharted territory for the United States, far exceeding the 50-year historical average of 47% of GDP. Each Solutions Initiative plan would significantly reduce and stabilize our debt trajectory:

Nov 20, 2024 · At 6.4 percent of GDP, last year’s deficit was more than twice the median deficit of 2.7 percent of GDP from 1930 (the first year that such calculations are provided by the Office of Management and Budget) to 2023.

Aug 21, 2024 · The Congressional Budget Office (CBO) projects that the U.S. government will run trillion-dollar deficits over the next 10 years, resulting in a cumulative deficit of $22.1 trillion between 2025 and 2034.