Government spending in the United States

"[3] BEA also shows $4,794.8 billion government consumption expenditures and gross investment, which excludes transfer payments (like social security), subsidies and interest.

[6] Figures published by the International Monetary Fund for 2022 shows general government spending at $9,372 billion, or 36.7% of GDP.

The next largest expenditures are Medicare and Income Security, with the remaining amount going to Medicaid, Veterans Benefits, and other programs.

Subcommittees in both the House of Representatives and the Senate appropriate discretionary funds for their respective areas, and the two chambers reconcile their differences.

[11] Military spending fell in the 1990s, but increased markedly in the 2000s as a result of the War in Afghanistan and Iraq.

National defense spending was expected to be $678 billion in 2019, an amount greater than the military expenditures of the next nine countries combined.

[16] Key defense expenditures typically include:[17] Oftentimes, federal governments spend more money than they collect in tax revenue in a given year.

In order to provide an incentive for individuals, businesses and other entities to lend money, the government must also pay these parties interest on the debt.

According to estimates from the Office of Management and Budget, interest on government debt is expected to more than double by 2028 and account for a larger percentage of total expenditures.

[20] At the beginning of the 20th century, the majority of government spending in the United States took place at the local level.

Ex-ante balanced budget requirements rely on estimates and assumptions about future costs and revenue growth, so they are more easily manipulated.

[28][29] California receives a significant amount of money from the federal government, especially for healthcare and welfare programs, but also has large in-state expenditures.

As the table suggests, health care and K12 education represent California's largest expenditures of state funds.

[31] As Table 1 suggests, California also spends significantly on higher education, police, and transportation, with smaller portions of funding attributable to environmental protection and other activities.

Pie chart of 2022 US Government (total of Federal, State, and Local) Spending by major type
CBO: U.S. Federal spending and revenue components for fiscal year 2023. Major expenditure categories are healthcare, Social Security, and defense; income and payroll taxes are the primary revenue sources.
Mandatory spending of the US Federal Government in 2023.
Figure A – Fiscal Year 2019 Mandatory Government Spending Breakdown as a percentage of total expected expenditures. Data from U.S. Office of Management and Budget archives.
Breakdown of discretionary outlays of US Federal Government for 2023.
Figure B – Fiscal Year 2019 Discretionary Spending Breakdown as a percentage of total expected expenditures. Data from U.S. Office of Management and Budget archives.
Figure C – Historical Defense Spending, 1970-2019. Data from the United States Office of Management and Budget archives.
State and Local spending as a % of GDP
Federal spending as a % of GDP