what is the us budget

The United States federal budget is the financial plan for the federal government's spending and revenues. For the fiscal year 2024, the federal budget was approximately $6.8 trillion. The government spends on major categories such as healthcare programs (including Medicare and Medicaid), Social Security, defense, and interest on federal debt. In fiscal year 2022, total spending was $6.3 trillion, which was about 25.1% of GDP. Major spending areas included Medicare and Medicaid ($1.339 trillion or 5.4% of GDP), Social Security ($1.2 trillion or 4.8% of GDP), non-defense discretionary spending ($910 billion or 3.6% of GDP), and the Department of Defense ($751 billion or 3.0% of GDP). The budget process starts with the President's proposal, but Congress holds the power to pass appropriations bills. If Congress does not finalize a budget, temporary continuing resolutions are used to keep the government funded. The budget often runs a deficit, meaning spending exceeds revenues, contributing to the federal debt. Projected federal budget deficits are expected to increase in the coming years, potentially reaching $2.6 trillion by 2034. The federal debt held by the public is currently high and is projected to grow as spending on mandatory programs and interest costs on the debt rise faster than revenues. In summary, the US federal budget is around $6.8 trillion for 2024, focused heavily on mandatory programs like healthcare and Social Security, defense, and interest payments, with ongoing challenges in balancing revenues and expenditures leading to deficits and growing debt.