2023 Federal Fiscal Year Summary

2023 Federal Fiscal Year Summary

November 06, 2023

The federal government’s fiscal year just ended, and the Treasury department reported the summary of the 2023 Fiscal Year.  Here are the highlights…I mean, lowlights!

Total spent: $6.13 Trillion - that’s $6,130,000,000,000, just to give a little impact!

Total revenue brought in from all sources: $4.44 Trillion

Net deficit - just simply subtracting $4.44T from $6.13T - was $1.69 Trillion

This $1.69 Trillion got tacked on to the federal DEBT, which as of 10/1/2023 stands at $33.64 Trillion.  Debt at the end of the 2022 fiscal year (FY) was $30.93 Trillion.  So, in FY23, total debt increased $2.71 Trillion.  
The year before (FY2022), total debt increased $2.50 Trillion. You'd only have to go back 15 years to FY2008 when the national debt first surpassed the $10 Trillion mark to see that Debt has increased 335% in just 15 years!
 
 More than half of this spending goes to either to the Social   Security Administration or Department of Health & Human   Services to provide social security benefits, Medicare,   Medicaid, and other health and income security programs.
 National Defense accounts for 13% of federal spending.
 A concerning trend is the increase in federal debt service,   which is the amount of payments that are needed on the exploding federal debit. In FY23, debt service was 11% of spending, but as debt rapidly climbs along with substantially higher interest rates, that new debt AND refinanced debt becomes a lot more expensive. The fear is that debt service will begin to take up a much bigger part of government spending.
To put debt service in perspective, if we make it relative to actual federal government income, debt service makes up more than 15% of government revenue! 
At the risk of oversimplify all of this, let's put this into perspective for an average consumer:
  • National debt is akin to a person that is making $100,000 per year having a credit card balance of more than $764,000 and spending habits equal to $138,000 per year!  (That’s simply taking the national debt as a multiple of federal revenue sources in FY23 and FY23 spending as a multiple of receipts.) 
If you'd like to see the numbers yourself, you can find most of this data at https://fiscaldata.treasury.gov/americas-finance-guide/