![]() The national debt stood at roughly 31.4 trillion as of Jan. Likewise, when the government runs a surplus, the debt shrinks. ![]() Visit to learn more about the federal response to COVID-19. When the government runs a deficit, the debt increases. While revenue increased during the COVID-19 pandemic, from approximately $3.5 trillion in 2019 to $4 trillion in 2021, increased government spending related to widespread unemployment and health care caused spikes in the deficit. Maintaining interest rates at low levels is another way that governments seek to stimulate the economy, generate tax revenue, and, ultimately, reduce the national debt. Legislation increasing spending on Social Security, health care, and defense that outpace revenue can increase the deficit. On the spending side, the increase or decrease of spending also impacts the budget, creating deficits or surpluses. Learn more about revenue sources, trends over time, and how revenue compares to GDP. Similarly, when the economy is doing well and people and businesses are earning more money, the government collects more. A federal budget deficit occurs when government spending outpaces revenue or income from taxes, fees, and investments. government has collected 3.97 trillion in fiscal year 2023 in order to pay for the goods and services provided to United States citizens and businesses. ![]() The national debt of the United States is the total unpaid borrowed funds carried by the federal government. The deficit by President reveals how much deficit was in each years budget, which can increase the debt. Simply put, when the country’s people and businesses are making less money, the amount collected by the government also decreases. A Presidents budget reveals a particular administrations spending priorities. On net, those effects combined lead to a 4.3 percent increase in the capital stock in 2040 and a 5.8 percent increase in 2050. The health of the economy is often evaluated by the growth in the country’s gross domestic product (GDP), fluctuations in the nation’s employment rates, and the stability of prices. In addition, the higher tax revenue decreases future government deficits and lowers the debt-to-GDP ratio by 19 percentage points in 2050, which crowds in private capital investment. The size of the national deficit or surplus is largely influenced by the health of the economy and spending and revenue policies set by Congress and the President.
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