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03-08-2017, 04:12 PM
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"What Is the Federal Budget Deficit?
The deficit is the annual difference between government spending and government revenue. Every year, the government takes in revenue in the form of taxes and other income, and spends money on various programs, such as national defense, Social Security, and healthcare. If the government spends more than it takes in, then it runs a deficit. If the government takes in more than it spends, it runs a surplus.
What Is the Federal Debt?
The debt is the total amount of money the U.S. government owes. It represents the accumulation of past deficits, minus surpluses. Debt is like the balance on your credit card statement, which shows the total amount you owe, including interest. At the end of fiscal year 2016, CBO estimates that debt held by the public will equal about $14 trillion, or about 77% of GDP.
Debt vs. Deficits: What's the Difference?
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