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Federal spending update#
Federal spending download#

From fiscal 2004 to 2013, total ination-adjusted federal spending in the states grew 26 percent, from 2.5 trillion to 3.1 trillion. " Spending Explorer: You Are Viewing FY 2022 Spending by Budget Function. Federal spending in the states grew 26 percent over the past decade, adjusted for inflation. " Consolidated Appropriations Act of 2021. " Historical Tables." Table 5.4-Discretionary Budget Authority by Agency: 1976–2025. " National Defense Budget Estimates for FY 2021," Table 2.1. “ A Budget for America’s Future: FY 2021,” Table S-8. " What is the Difference Between Mandatory and Discretionary Spending?" " Historical Tables," Table 5.2-Budget Authority by Agency: 1976–2025.Ĭongressional Budget Office. " Older People Projected to Outnumber Children for First Time in U.S. " Historical Tables." Table 8.1-Outlays by Budget Enforcement Act Category: 1962–2025. " Debt and Deficits: Spending, Revenue, and Economic Growth,".

Federal spending download#

" Historical Tables." Download Table 1.2-Summary of Receipts, Outlays, and Surpluses or Deficits (-) as Percentages of GDP: 1930–2025.Ĭongressional Research Service.

Federal spending update#

" Understanding Sequester: An Update for 2018." “ A Budget for America’s Future: FY 2021,” Table S-5.įederal Reserve Bank of St. “ A Budget for America’s Future: FY 2021,” Table S-4. government has collected 1.73 trillion in fiscal year 2023 in order to pay for the goods and services provided to United States citizens and businesses. Much of the decline resulted from the booming economy of the late 1990s, but unemployment dropped even through the defense spending cuts of 1992 through 1995.The White House. The unemployment rate reached 7.8 percent in 1992, but then fell through the rest of the decade, to 4.0 percent in 2000. Growth in the second half of the 1990s, while the spending cuts were ongoing, averaged 4.0 percent. To be sure, growth was low during the early 1990s, but the spending cuts continued even as the economy strengthened through the rest of the decade.Yet with this pattern of government spending reductions, the economic results defied what many expected: the cuts did not impair growth. Now that the baby boom retirements have started, that demographic pattern will not repeat. The decrease resulted from demographics-the baby boomers had not yet started retiring-not from changes in the program. Social Security-the largest of the three programs-peaked at 4.6 percent of GDP in 1993, then fell over the rest of the decade to 4.2 percent.Spending on Medicare actually declined as a percent of GDP in the later years of the decade, partly due to reforms adopted in 1997.

After 1995, however, Medicaid stayed relatively flat.

Medicaid eligibility had expanded through the 1980s, and the program’s spending rose in the first half of the 1990s.

Although the decline from 13.2 percent to 12.8 percent of GDP was small, it was significant that this spending-which includes the major entitlements, Medicare, Medicaid, and Social Security-did not rise.

The decline in federal debt-from a peak of 49.5 percent of GDP in 1993 to 35.1 percent in 2000-led to falling interest payments, which dropped from 3.2 percent of GDP in 1990 to 2.3 percent in 2000.ĭomestic spending-defined as all spending other than defense, international affairs, and net interest-fell slightly as a percent of GDP.

Net interest had the second-highest level of reduction in spending.

Over the decade, defense spending dropped from 5.2 percent of GDP in 1990 to 3.0 percent in 2000, and these cuts reflected a broad consensus among Republicans and Democrats.

Most of the cuts-61.2 percent of the reduction in total spending-occurred in national defense, primarily due to the end of the Cold War.

Henderson, a professor of economics at the Naval Postgraduate School and former senior economist for the President’s Council of Economic Advisers, please see “ US Federal Budget Restraint in the 1990s: A Success Story.”ĭespite divided government for 8 of the 10 years of the 1990s, federal spending was cut from 21.9 percent of GDP to 18.2 percent, amounting to an economically significant 17 percent reduction in the share of the economy spent by the federal government. To view the paper in its entirety and learn more about the author, David R. The political lesson equally clear: divided government may make spending cuts more difficult, but it does not render them impossible.īelow is a brief overview. The economic and budgetary lesson from the decade is clear: it is possible to reduce federal government spending as a percent of Gross Domestic Product (GDP) by cutting some spending and restraining the growth of the rest. The proof is hidden in plain sight: it’s called the 1990s.Ī new study published by the Mercatus Center at George Mason University reviews the example of the 1990s to debunk some of Washington’s most frequently cited reasons why spending cannot be cut now. Many have declared it impossible to cut federal government spending as a share of the economy, particularly in a time of divided government.