![]() The Fitch bond rating agency warned in June that despite the country's "exceptional strengths," the nation's AAA bond rating could be jeopardized by "governance shortcomings," including "failure to tackle fiscal challenges. "We're running off the rails at an alarming rate," she said in a statement. This report provides a brief overview of the basic terminology and concepts used in the federal budget process. Macguineas said all aspects of the federal budget should be on the table. Congressional Republicans have rejected any call for tax increases, while the White House has fought proposals to cut spending on major programs such as Medicare and Social Security. The ballooning deficit continues to spark political fights. A deal to avoid a government default imposed modest caps on discretionary spending, which is a relatively small part of the overall budget. The recent showdown over the government's debt ceiling brought little meaningful change in the fiscal outlook. "How can anyone possibly think this trend is sustainable?" "We are projected to spend more on interest payments in the next decade than we will on the entire defense budget," said Maya Macguineas, president of the Committee for a Responsible Federal Budget. The government's gusher of red ink brought renewed calls for fiscal restraint. That money will come from the Federal Deposit Insurance Corp.'s deposit insurance fund and a special assessment on other big banks. The government has also paid $52 billion so far to cover deposits at three regional banks that failed this spring. Social Security payouts jumped 11%, thanks in part to an 8.7% cost-of-living adjustment for retirees and other recipients - the largest such increase in four decades. Learn more about the factors impacting the federal budget deficit, how it's calculated, and whether you should be concerned. It was the second-highest deficit since 19 deficit of 3.1 trillion as a result of the COVID-19 pandemic takes the top spot. Spending on major health care programs such as Medicare and Medicaid rose sharply. federal budget deficit reached 2.8 trillion for the fiscal year 2021. Overall, tax revenues between October and June were 11% lower than the same period a year ago.Īt the same time, government spending jumped 10%. While the index has since rebounded, investors realized fewer capital gains last year, and paid less in capital gains taxes this year. The S&P 500 stock index, for example, fell nearly 20% in 2022, during a period of uncertainty about the economy. Treasury officials blamed the falling revenues on reduced investment gains last year. The deficit ballooned both because of a sharp increase in government spending and a significant drop in tax revenues. Peterson foundation, which promotes fiscal responsibility. " Federal Deficit Trends Over Time."Unfortunately, interest is now the government's fastest growing quote-unquote 'program,'" said Michael Peterson, CEO of the Peter G. " Funding Gaps and Shutdowns in the Federal Government."Ĭ. " Congress Increasingly Fails to Budget." Ĭommittee for a Responsible Federal Budget. " United States Code, 2006 Edition, Supplement 5, Title 31 - Money and Finance,". " Congressional Budget and Impoundment Control Act of 1974," Pages 11-12. " Congressional Budget and Impoundment Control Act of 1974." " Major Foreign Holders of Treasury Securities." " The Department of Defense Releases the President’s Fiscal Year 2022 Defense Budget."ĭepartment of the Treasury. " The Disaster Relief Fund: Overview and Issues," Pages 19-24.ĭepartment of Defense. " Fiscal Year (FY) 2022 President’s Budget -Justification for Component Contingency Operations the Overseas Contingency Operation Transfer Fund (OCOTF),". ![]() " Social Security Board of Trustees: Combined Trust Funds Projected Depletion One Year Sooner Than Last Year."īureau of the Fiscal Service. “ S.J.Res.33 – A Joint Resolution Relating to Increasing the Debt Limit.” " The Debt to the Penny and Who Holds It," Select "Data Tables."Ĭongressional Budget Office. " An Update to the Budget and Economic Outlook: 2021 to 2031." " The Budget and Economic Outlook: 2021 to 2031."Ĭongressional Budget Office. ![]()
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