What this chart shows:
This chart shows the trend in U.S. government spending and revenue (receipts) as a percentage of gross domestic product (GDP) from 1962 – 2024.
Why it matters:
Federal spending continues to exceed revenue, resulting in persistent deficits. For 2025 alone, the Congressional Budget Office projected the full-year deficit to hit $1.9 trillion.
While pandemic-related spending has eased, tax and other receipts have not kept pace, raising concerns about rising debt and potential impacts on future interest rates, taxes, and economic policy.
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