Federal Spending (2023)

Federal Spending Overview (2023) §

Understanding federal spending requires breaking it into three main categories: discretionary spending, mandatory spending, and interest on the debt. Below is a detailed look at these components for 2023, along with visualizations using the Chartsview plugin.

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1. Discretionary Spending §

Definition: Spending approved annually by Congress to fund various programs and activities.

**2023 Data:

• Total: $1.7 trillion
• Defense: $850 billion
• Non-Defense: $950 billion

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type: Pie

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data:
  - type: "Defense"
    value: 850
  - type: "Non-Defense"
    value: 950

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2. Mandatory Spending §

Definition: Spending mandated by law, primarily for entitlement programs.

2023 Data:

• Total: $3.8 trillion
  • Social Security: $1.3 trillion
  • Medicare: $850 billion
  • Other Programs: $1.65 trillion

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type: Pie

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data:
  - type: "Social Security"
    value: 1300
  - type: "Medicare"
    value: 850
  - type: "Other Programs"
    value: 1650

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3. Interest on the Debt §

• Definition: Payments to service the national debt.
• 2023 Data:
  • Net Interest: $659 billion

4. Total Federal Outlays and Revenues §

• 2023 Data:
  • Total Outlays: $6.1 trillion
  • Total Revenues: $4.4 trillion
    • Individual Income Taxes: $2.2 trillion
    • Payroll Taxes: $1.5 trillion
    • Corporate Income Taxes: $0.4 trillion
    • Other Revenues: $0.3 trillion
  • Deficit: $1.7 trillion (Outlays exceed Revenues)

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type: Bar

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data:
  - action: "Total Outlays"
    value: 6100
  - action: "Total Revenues"
    value: 4400
  - action: "Deficit"
    value: 1700

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options:
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Summary Table §

Category	Amount (Billion USD)
Discretionary Spending	1,700
Mandatory Spending	3,800
Interest on the Debt	659
Total Federal Outlays	6,100
Total Revenues	4,400
Deficit	1,700

Key Insights §

1. Defense vs. Non-Defense: Defense spending makes up half of discretionary spending.
2. Entitlements: Social Security and Medicare dominate mandatory spending.
3. Interest Payments: Rising interest payments are a growing concern as debt levels increase.
4. Revenue Sources: Individual and payroll taxes account for the majority of federal revenue.

External References §

• Discretionary Spending (CBO)
• Mandatory Spending (CBO)
• Interest on Debt (CBO)