Overview of U.S. Budget

Federal Budget expenditures are generally around 22 to 23 percent of the Gross Domestic Product (GDP). A deficit exists because the U.S. Congress has consistently and purposely established tax rates at a level which will fall short of meeting spending needs.

The U.S. combined federal and state spending when compared to the GDP is less than most developed counties even though the U.S. spends much more on military expenditures.

The U.S. federal deficit is high compared to most other industrialized countries.

The combined spending on military and Social Security accounts for almost 2/3 of all federal outlays.