page_title: United States federal budget
section_title: Relationship of deficit and debt
hierarchical_section_title: United States federal budget / Understanding deficits and debt / Relationship of deficit and debt
caption_attribution_description: English: U.S. Total Deficits vs. National Debt Increases 2001-2010 Source data The source data for the file is the CBO Historical tables (deficits) and U.S. Treasury Direct (debt). For 2015, the deficit data is from the CBO Monthly Budget Review. CBO Historical Tables U.S. Treasury Direct
context_page_description: The United States federal budget comprises the spending and revenues of the U.S. federal government. The budget is the financial representation of the priorities of the government, reflecting historical debates and competing economic philosophies. The government primarily spends on healthcare, retirement, and defense programs. The non-partisan Congressional Budget Office provides extensive analysis of the budget and its economic effects. It has reported that large budget deficits over the next 30 years are projected to drive federal debt held by the public to unprecedented levels—from 78 percent of gross domestic product in 2019 to 144 percent by 2049.
  The United States has the largest external debt in the world and the 14th largest government debt as % of GDP in the world. The annual budget deficit increased from $585 billion in 2016 to $984 billion in 2019, up 68%. Relative to a CBO forecast prior to President Trump's inauguration, the budget deficits for 2019-2021 roughly doubled, due to the Trump tax cuts and other spending legislation.
context_section_description: Intuitively, the annual budget deficit should represent the amount added to the national debt.  However, there are certain types of spending ("supplemental appropriations") outside the budget process which are not captured in the deficit computation, which also add to the national debt. Prior to 2009, spending for the wars in Iraq and Afghanistan was often funded through special appropriations excluded from the budget deficit calculation. In FY2010 and prior, the budget deficit and annual change in the national debt were significantly different. For example, the U.S. added $1 trillion to the national debt in FY2008 but reported a deficit of $455 billion. Due to rules changes implemented under President Obama in 2009, the two figures have moved closer together and were nearly identical in 2013 (a CBO-reported deficit of $680 billion versus change in debt of $672 billion). For FY2014, the difference widened again, with the CBO reporting a deficit of $483 billion  compared to a change in total debt outstanding of $1,086 billion.
caption: Deficit and Debt Increases 2001–2016.
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