Budget Deficits and National Debt

Budget deficits and the national debt describe the gap between what the federal government spends and what it collects, and the total it owes after borrowing to cover that gap. A deficit is one year's shortfall, a surplus is the opposite, and the debt is the running total. Congress and the president shape the budget, and the Treasury Department borrows the money.

People usually bring questions about how deficits, surpluses, and debt differ, why the government borrows, and who holds the debt. They also ask whether a balanced budget requirement makes sense, how public debt differs from private debt, what solutions are proposed, and how the United States compares with other countries.