Volume 2 Issue 2006

 
 


The federal government spent close to$2.5 trillion in fiscal year 2004.   Social security, defense, interest on the national debt and health care costs alone account for $1.8 trillion or 71% of the entire federal budget.  The federal government is spending about a half a trillion dollars more than we pay in taxes.  This additional spending is called the national deficit which is added to the national debt each year.   To balance the budget, on the spending side alone would require a 20% across the board cut.

Federal Government Spending

Fiscal Year 2004

(in billions of dollars)

Social security benefits

$496

20%

National defense (military personnel, operations/maintenance)

456

18%

Interest on Treasury debt securities

322

13%

Healthcare for the retired (Medicare)

269

11%

Healthcare for the poor/needy (Medicaid)

240

10%

Welfare payments (food stamps, nutrition, housing, SSI, EIC)

196

8%

Federal employee pensions and disability

95

4%

Education, training, employment, and social services

88

4%

Transportation (highways, airports, mass transit, marine)

65

3%

Veterans benefits and services

60

2%

Administration of justice

46

2%

Federal unemployment benefits

42

2%

Natural resources and environment

31

1%

International affairs

27

1%

General science, space, and technology

23

1%

General government

22

1%

Community and regional development

16

1%

Agriculture

15

1%

Commerce and housing credit

5

0%

Total

$2,512

100%

 
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