Updated: November 3, 2026
Yearly government spending is usually measured as outlays: payments made by a government during a fiscal year. For the federal government, that means comparing one October 1–September 30 fiscal year with another. The total does not, by itself, tell you what Congress authorized, what the government collected, or how much state and local governments spent.
For a useful comparison, identify the measure, period and coverage before reading the trend. The Congressional Budget Office (CBO) and the Office of Management and Budget (OMB) publish federal budget data, but tables can use different definitions and projections. The figures below use fiscal-year federal outlays reported by OMB; amounts are rounded, so the table is a guide to scale, not a substitute for the underlying budget documents.
| Fiscal year | Outlays | Deficit | What to notice |
|---|---|---|---|
| 2019 | $4.45 trillion | $984 billion | Pre-pandemic reference year |
| 2020 | $6.55 trillion | $3.13 trillion | Emergency pandemic spending began |
| 2021 | $6.82 trillion | $2.78 trillion | Outlays remained elevated |
| 2022 | $6.27 trillion | $1.38 trillion | Outlays fell from the prior year |
| 2023 | $6.13 trillion | $1.70 trillion | Lower total outlays, larger deficit |
| 2024 | $6.75 trillion | $1.83 trillion | Outlays rose in current dollars |
- October 1–September 30 The federal fiscal year used for these annual comparisons
- $6.75 trillion Federal outlays in fiscal year 2024, in current dollars
- $1.83 trillion Federal deficit in fiscal year 2024; outlays exceeded receipts by this amount
What does yearly government spending measure?
Federal outlays record payments made during a fiscal year. They are different from budget authority, the legal permission to incur obligations, and from obligations themselves, which are commitments such as a signed contract. Congress can provide budget authority in one year while payments occur over several years. A construction project funded in fiscal year 2024, for example, need not be paid for entirely in 2024.
Coverage matters just as much. Federal outlays do not include all spending by states and localities; a combined-government measure must account for those governments and avoid counting federal grants twice. The Census Bureau’s Annual Survey of State and Local Government Finances is one source for those levels of government. Federal receipts—mainly taxes and other income—are reported separately. Subtract receipts from outlays for the same fiscal year to find the deficit; receipts above outlays produce a surplus.
Read the label before the total
- Measure: Check whether a figure is outlays, budget authority, obligations or receipts.
- Period: Federal fiscal year 2024 ran from October 1, 2023, through September 30, 2024; calendar-year totals use a different period.
- Coverage: Confirm whether the source includes federal spending alone or federal, state and local spending together.
The OMB Historical Tables and CBO’s budget reports state their definitions and coverage. Use the same table series when comparing years, especially when an agency revises historical estimates.
How do mandatory programs differ from discretionary funding?
Eligibility and benefit rules
Mandatory spending follows laws that establish eligibility, benefits and payment formulas. Social Security and Medicare are major examples. Their yearly outlays can change as enrollment, benefit levels, health-care costs and statutory rules change; Congress does not set each beneficiary’s payment through an annual appropriations bill.
“Mandatory” does not mean unchangeable. Congress can amend the laws governing Social Security or Medicare, and those amendments can affect future payments. When assessing a change, separate changes in the law from changes in the number of eligible people and the cost of benefits.
Annual appropriations
Discretionary funding is provided through annual appropriations. The House and Senate consider appropriations bills, and enacted funding gives agencies authority to spend for specified purposes. The enacted amount is budget authority, not necessarily the amount paid in that fiscal year. Defense, transportation and many federal agency operations are funded through this process, though particular programs can have different budget treatment.
Compare like with like: outlays against outlays, or enacted budget authority against enacted budget authority. CBO’s historical budget tables separate mandatory spending, discretionary spending and net interest, which helps trace how the broad categories move without confusing an appropriation with a payment.
Why track interest costs separately?
Net interest is the federal government’s cost of servicing debt, reported as a budget category distinct from Social Security, Medicare and agency programs. It reflects interest paid on federal debt, less certain interest income and related adjustments. It does not purchase a current service in the way that a Medicare payment or an agency grant does.
Interest outlays depend on the amount and composition of federal debt, rates on Treasury securities and the timing of debt issuance. A rise in net interest can therefore increase total outlays even when Congress has not raised an agency’s annual appropriation. Conversely, a change in rates does not instantly reprice all outstanding fixed-rate debt; the effect builds as securities mature and new borrowing is issued.
Use more than one measure
Net interest in dollars shows the amount paid. Net interest as a share of gross domestic product (GDP) compares that cost with the size of the economy. The primary deficit or surplus excludes net interest, while the overall deficit includes it. CBO’s Budget and Economic Outlook presents projections for these measures, but projections depend on assumptions about interest rates, economic growth and future law; check the report’s stated forecast period before comparing a projection with an actual year.
How can you compare spending across years reliably?
First match fiscal years and spending measures. Then decide whether your question concerns the dollar amount paid, purchasing power, or spending relative to the economy. These are separate comparisons: a nominal total answers how many dollars were spent, while an inflation-adjusted total estimates how those dollars compare in purchasing power.
Nominal dollars and inflation adjustment
Nominal outlays use the dollars recorded for each year. They are suitable for describing cash totals but can exaggerate long-run growth because prices rise. For an inflation-adjusted comparison, apply a stated price index consistently and name its base year. The Bureau of Economic Analysis publishes the GDP price index; the Bureau of Labor Statistics publishes the Consumer Price Index for All Urban Consumers (CPI-U). They measure prices differently, so a comparison should not quietly switch indexes midway.
For instance, the $6.75 trillion spent in fiscal year 2024 is a current-dollar figure. It is not directly comparable in purchasing-power terms with the $4.45 trillion spent in fiscal year 2019. A fair real-dollar comparison requires converting both totals with the same index and base year. If you do not have that calculation, label the numbers “current dollars” rather than describing the change as real growth.
Dollars and share of GDP
Outlays as a share of GDP show federal spending relative to economic output. The ratio can rise because outlays increase, GDP falls, or both; it can fall even while nominal outlays rise if GDP grows faster. GDP is revised as the Bureau of Economic Analysis incorporates new data, so use one vintage of the series when precision matters.
Keep the numerator clear: total federal outlays as a share of GDP are not the same as Medicare outlays as a share of GDP. OMB’s Historical Tables and CBO’s long-term budget projections provide federal measures, while BEA supplies GDP data. Label the fiscal year, spending category, price treatment and denominator together.
What can shift yearly spending without a lasting trend?
A one-year change can reflect a new law, a temporary program, economic conditions, payment timing or interest costs. The pandemic years show why context matters: federal outlays rose from $4.45 trillion in fiscal year 2019 to $6.55 trillion in 2020, then reached $6.82 trillion in 2021, as emergency measures and other responses added spending. The total alone cannot tell you which programs drove the change; OMB’s functional and agency tables provide the next level of detail.
Some changes that first appear temporary last longer. A statutory benefit expansion can affect later years, while a one-time grant may not recur. Economic downturns can increase claims for programs such as unemployment compensation and reduce tax receipts at the same time. That combination can widen the deficit without Congress passing a new permanent spending program.
Check the cause, not just the year
- Temporary laws: Check enactment dates, expiration dates and program costs in CBO cost estimates or the relevant public law.
- Economic conditions: Compare program outlays with unemployment and enrollment measures; a higher payment total may reflect more recipients rather than a larger benefit.
- Interest: Separate net interest from program spending and note the Treasury rates and debt measures relevant to the period.
- Timing: Look for delayed or accelerated payments that move outlays across September 30, the fiscal-year boundary.
When can yearly spending comparisons mislead?
Common measurement errors
The first mistake is comparing different measures: budget authority in one year and outlays in another. The second is comparing current dollars across a long span without an inflation adjustment. A third is treating a larger program total as proof that its rules became more generous. Population, prices, enrollment and payment timing can also change a program’s total.
Deficits require particular care. They are the difference between outlays and receipts, not another name for spending. In fiscal year 2023, federal outlays were about $6.13 trillion and the deficit was about $1.70 trillion; in fiscal year 2024, outlays rose to about $6.75 trillion while the deficit increased to about $1.83 trillion. The outlay total and deficit moved together in this comparison, but the deficit also depends on receipts. Check both sides of the budget before explaining the change.
Temporary changes versus persistent trends
A single annual increase is an observation, not enough evidence to establish a lasting trend. Compare several consecutive fiscal years, use the same OMB or CBO series, and inspect the major spending categories. The pandemic-era totals illustrate the point: outlays declined after fiscal year 2021, then rose again in 2024. That sequence is not a smooth upward path, and it does not identify the cause of the latest increase by itself.
When sources disagree, first check whether one reports actual outlays and the other a forecast, whether they use revised GDP data, and whether the fiscal-year definition matches. OMB’s budget documents are the federal government’s official presentation; CBO provides an independent congressional estimate. Their estimates can differ because of timing, assumptions and update dates, so cite the series and release date you use.
Frequently asked questions
What is yearly government spending?
What is the difference between mandatory and discretionary spending?
Why should interest costs be separated from program spending?
What is the fairest way to compare federal spending over time?
Key takeaways
- Federal outlays are payments made; budget authority is permission to incur obligations.
- Social Security and Medicare are mandatory programs; annual appropriations fund discretionary programs.
- Net interest is a separate category, and the deficit also depends on receipts.
- For trends, use consistent fiscal years and measures; label current dollars, inflation adjustments or GDP shares clearly.
- For underlying figures, check OMB Historical Tables, CBO budget reports, Treasury data and BEA GDP series, noting each release date and whether figures are actuals or forecasts.