US Federal Budget FY2020 Analysis
ActualsTotal outlays, receipts, deficit, and category-wise allocation for fiscal year 2020 (October 2019 โ September 2020).
US Federal Budget FY2020 at a Glance โ Key Numbers
Total Receipts
$3.42 trillion
-1.2% YoY
Total Outlays
$6.55 trillion
+47.4% YoY
Deficit
14.7%
$3.13 trillion
Net Interest
$345.5 billion
-7.9% YoY
Debt Held by Public
$21.02 trillion
98.7% of GDP
Nominal GDP
$21.29 trillion
+0.1% YoY
Receipts by Source FY2020
Outlays by Category FY2020
Federal Deficit as a Percentage of GDP โ FY2020
The federal deficit for FY2020 was 14.7% of GDP ($3.13 trillion), the gap between $6.55 trillion in outlays and $3.42 trillion in receipts. Every dollar of it was borrowed, adding to debt held by the public.
Debt held by the public stood at $21.02 trillion, or 98.7% of GDP. Unlike most US states, the federal government has no balanced-budget requirement, so deficits accumulate directly into this stock of debt.
Net interest of $345.5 billion consumed 5.3% of total outlays. Interest buys no current services โ it is the price of past borrowing, and it crowds out other spending as rates rise.
US Federal Budget FY2020 โ Receipts & Outlays Summary
| Particulars | FY2020 | FY2019 | Change |
|---|---|---|---|
| Total Receipts | $3.42 trillion | $3.46 trillion | -1.2% |
| Total Outlays | $6.55 trillion | $4.45 trillion | +47.4% |
| Deficit | $3.13 trillion | $983.6 billion | +218.5% |
| Net Interest | $345.5 billion | $375.2 billion | -7.9% |
| Debt Held by the Public | $21.02 trillion | $16.80 trillion | +25.1% |
| Nominal GDP | $21.29 trillion | $21.28 trillion | +0.1% |
| Deficit (% of GDP) | 14.7% | 4.6% | โ |
Category-wise Federal Spending FY2020
| Spending Category | Amount โผ | Share |
|---|---|---|
1. All Other | $1.67 trillion | 25.5% |
2. Income Security | $1.26 trillion | 19.3% |
3. Social Security | $1.10 trillion | 16.7% |
4. Medicare | $776.2 billion | 11.8% |
5. National Defense | $724.6 billion | 11.1% |
6. Medicaid | $458.5 billion | 7.0% |
7. Net Interest | $345.5 billion | 5.3% |
8. Veterans Benefits | $218.7 billion | 3.3% |
Compare US Federal Budget โ Five-Year Trend
Year-over-year comparison of key fiscal metrics
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|---|---|---|---|---|
| Total Outlays | $3.85 trillion | $3.98 trillion | $4.11 trillion | $4.45 trillion | $6.55 trillion |
| Total Receipts | $3.27 trillion | $3.32 trillion | $3.33 trillion | $3.46 trillion | $3.42 trillion |
| Deficit | $584.7 billion | $665.5 billion | $779.1 billion | $983.6 billion | $3.13 trillion |
| Net Interest | $240.0 billion | $262.6 billion | $325.0 billion | $375.2 billion | $345.5 billion |
| Debt Held by Public | $14.17 trillion | $14.67 trillion | $15.75 trillion | $16.80 trillion | $21.02 trillion |
| Deficit (% GDP) | 3.1% | 3.4% | 3.8% | 4.6% | 14.7% |
How to Read the US Federal Budget FY2020
The federal budget is measured in outlays โ money actually paid out during the fiscal year โ rather than budget authority, which is permission to spend that may be used across several years. That distinction is why the headline total moves differently from the appropriations Congress votes on.
Federal Receipts FY2020 Explained
Receipts totalled $3.42 trillion in FY2020. Individual income taxes and payroll taxes for Social Security and Medicare together supply the large majority of federal revenue, which is why receipts track wages and employment closely and fall sharply in recessions. Corporate income taxes are far more volatile year to year.
Mandatory vs Discretionary Spending
Roughly two-thirds of outlays are mandatory โ Social Security, Medicare, Medicaid and other programmes governed by permanent law that continue automatically unless Congress changes the underlying statute. Discretionary spending, set annually through twelve appropriations bills, covers defence and most federal agencies. This split is the single most important thing to understand about why the budget is hard to change quickly.
What the Deficit Means and Why It Matters
The FY2020 deficit of $3.13 trillion equals 14.7% of GDP. Economists judge deficits as a share of GDP rather than in dollars, because a growing economy can carry a larger absolute deficit. Sustained deficits raise debt held by the public, which in turn raises net interest costs.
Actuals vs Estimates
Completed fiscal years are reported as actuals in the Treasury's final Monthly Treasury Statement. The current year carries estimates from the Congressional Budget Office's baseline, which projects spending and revenue under current law and is revised as the year progresses. This page is labelled Actuals.
How the Federal Budget Process Works
The fiscal year begins October 1. The President submits a budget request, Congress passes a budget resolution and then appropriations bills; when those are not enacted in time, a continuing resolution funds agencies at prior-year levels or the government shuts down. Reconciliation allows certain budget bills to pass the Senate by simple majority.
Explore More Budget Data & Analysis
Official References & Data Sources
- US Treasury โ Monthly Treasury Statement โ official monthly and year-end receipts and outlays
- Congressional Budget Office โ Budget and Economic Data โ historical series and baseline projections
- OMB โ Historical Tables โ long-run receipts, outlays and debt by function
- Treasury โ Debt to the Penny โ daily debt held by the public and gross federal debt
State budgets tell the other half of the story
Federal grants supply roughly a third of what states spend. See all 50 state budgets to follow the money the rest of the way down.