Federal Deficit and Debt

Federal deficit and debt covers the gap between what the federal government spends and what it collects, and the borrowing that builds up as a result. A deficit is a yearly shortfall, a surplus is a yearly excess, and the debt is the total owed. Congress, the Treasury, and the president shape these numbers through tax and spending choices.

People usually ask how a deficit differs from the debt, who holds government debt, and what risks or benefits come with borrowing. They also ask how public debt compares with private debt, what the options for reducing the debt are, and how supporters of different approaches weigh spending, taxes, and economic growth.