Center on Budget and Policy Priorities

Budget — Federal

The Center's Updated Long-Term Fiscal Deficit & Debt Projections

The nation faces an unsustainable fiscal future unless the President and Congress change current policies, according to updated projections from the Center.

While it is imperative that we avoid undercutting ongoing efforts to spur a recovery from what is in many respects the worst recession since the 1930s, it is vital that policymakers begin as soon as possible to take the steps needed to raise revenues and slow spending growth when the economy recovers in order to put the budget on a sustainable path. They can — and must — do this in a way that also maintains policies that meet crucial national needs and that avoids further increasing poverty and inequality.

The most important of these steps is system-wide health care reform — to put the federal budget on a
sound long-term trajectory. Read more

Topics

Basics

The federal budget outlines the U.S. government’s spending plans for the coming fiscal year and how it plans to pay for that spending. The three biggest areas of federal spending in 2007 were defense and security, Social Security, and public health insurance programs, each of which made up roughly one-fifth of the budget. About 75 percent of the money used to pay for these programs came from individuals, through income and payroll taxes. Most of the rest came from business owners, though 6 percent came from borrowing.

Policy Basics:
- Where Do Our Tax Dollars Go?
- Introduction to the Federal Budget Process
- Deficits, Debt, and Interest
- Congress's "Pay-As-You-Go" Budget Rule

Featured Experts

James Horney

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Chad Stone

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Paul Van de Water

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The Center informs the debate over federal budget priorities by analyzing the President’s budget and major congressional proposals throughout the annual budget process. We pay particular attention to the adequacy of funding for programs that assist low- and moderate-income families. We also analyze long-term budget challenges and measures to address them. In addition, we promote measures to improve fiscal responsibility.