Federal Surplus or Deficit [-] (2024)

FAQs

What is the federal surplus or deficit [-]? ›

The federal government has spent $855 billion more than it has collected in fiscal year (FY) 2024, resulting in a national deficit. Fiscal year-to-date (since October 2023) total updated monthly using the Monthly Treasury Statement (MTS) dataset.

While a budget surplus is income left over after expenses are paid during a specific period of time, a budget deficit exists when expenses exceed income during a specific period of time. Debt is the sum total of all deficits.

A positive (+) number indicates that revenues exceeded expenditures (a budget surplus), while a negative (-) number indicates the reverse (a budget deficit).

A fiscal deficit occurs when, in a given year, a government spends more than it receives in revenues. On the other hand, a government will run a surplus when revenues exceed expenditures.

Budget is surplus if the estimated government receipt[4] s is more than the estimated government expenditure. Deficit budget. ● Estimated government expenditure > Estimated government receipts. ● Budget is a deficit when the estimated government receipts are less than the estimated government expenditure.

The federal deficit in 2023 was $1.7 trillion, equal to 6.3 percent of gross domestic product. In CBO's projections, federal budget deficits total $20 trillion over the 2025–2034 period and federal debt held by the public reaches 116 percent of GDP.

There is no simple answer as to whether a budget surplus is good or bad. Running a surplus has its advantages, the same way running a deficit does. The best action depends on the entity's specific economic situation and priorities.

A surplus is when you have more of something than you need or plan to use. For example, when you cook a meal, if you have food remaining after everyone has eaten, you have a surplus of food. You can choose to throw the food out, stockpile it, or try to find someone else, like a neighbor, who wants to eat the food.

In other words, if the government's earnings are greater than its outlays (or spending) in a given year, there's a surplus. On the other hand, if it spends more than it earns, there's a budget deficit. For example, in 2023, the U.S. federal government spent $6.13 trillion and brought in $4.44 trillion in revenue.

What does deficit mean? ›

A deficit is synonymous with a shortfall or loss and is the opposite of a surplus. A deficit can occur when a government, company, or person spends more than it receives in a given period, usually a year.

A trade deficit occurs when a country imports more goods than they export. A trade surplus occurs when a country exports more goods than they import. Net exports are calculated by subtracting imports from exports.

Current-Account Deficit Narrows in 2023. The U.S. current-account deficit, which reflects the combined balances on trade in goods and services and income flows between U.S. residents and residents of other countries, narrowed by $152.8 billion, or 15.7 percent, to $818.8 billion in 2023.

The government is running a cumulative deficit of $857 billion so far in FY2024 ($59 billion less than the same period in the prior fiscal year when adjusted for timing shifts*).

The nation's debt, currently over $34 trillion, is rampantly growing as U.S. lawmakers have been unable to agree to long-term budget reforms that could tame it.