Budget Comparisons - 2008 Federal Revenue and Spending Book of Charts

Federal Revenue and Spending: A Book of Charts

Section 4: Revenue & Spending Comparisons

Federal Spending Is Growing Faster Than Federal Revenue

Since 1965, federal tax revenues and spending have soared. Revenues have increased by more than $1.9 trillion, and spending is up by $2.1 trillion. The government spent more than it took in during most of this period, generating an average annual deficit of $167.8 billion from 1965 to 2007.

Government Spending Grew Faster Than Revenues for Most Administrations

Spending growth typically increases faster than revenue growth, as seen in five of the last eight Administrations.

All Recent Administrations Ran Up Budget Deficits

Since the 1960s, deficits driven largely by increased levels of spending have been the norm, while surpluses were an exception. The current 2008 deficit projection — 2.9 percent of GDP — is slightly above the 45-year historical average of 2.8 percent of GDP.

Among Recent Administrations, President Reagan Stands Out as Most Willing to Use Veto

President Reagan vetoed more bills than any other President in the past 40 years, while President George W. Bush vetoed only nine bills despite over 100 veto threats.

FY 2008 Had the Second-Highest Number of Earmarks in History Despite the Change in Congressional Leadership
Earmarks, or “pork” projects, have escalated in recent years. There were more earmarks in 2005 than from 1991 to 1999 combined. In 2007, there was a dramatic decrease in projects as a result of a year-long continuing resolution. Under the Democratic Congress, earmarks have shot back up to the second-highest level in recent history.

Defense Spending Is on the Decline Despite the War on Terrorism

Although the United States is currently spending a significant portion of GDP on the military, defense spending has actually declined significantly since the early 1960s.

Non-Defense Spending Growth Was Lowest Under the Reagan Administration

The last four Administrations all increased federal non-defense spending. Although Ronald Reagan allowed spending to increase slightly, compared to other recent Administrations, he was the most restrained.