2 Federal Budget

The Federal Budget

Deficits, Surpluses, and the National Debt

What are Federal Budget Deficits and

Surpluses?

A budget can be balanced or it can have a surplus or
a deficit.

Budget Surplus =

Having a surplus in a budget means that
after all expenses are paid there is
money left over to place into savings.
Surpluses are very healthy to have.

Budget Deficit =

is a shortfall; it is when you don’t have
enough revenue (money coming in) to
pay all the expenses (bills).

Having a deficit means you will need to
borrow money to pay your bills.
Borrowing money causes you to have
debt.

Does the Federal Government Run Surpluses

or Deficits Each Year?

•The federal government has a history of
creating poor budgets and has been running
huge deficits (spending more than it brings in)
for years.

•Each time the government runs a deficit it
most borrow money to pay it bills.

The Federal Budget

Surpluses and Deficits

Surpl
uses

Deficits

What is National Debt?

•The national debt is all the money the federal
government has borrowed over the years and has not
paid back.

•At the end of 2022, the national debt was over $30
trillion or $30,000,000,000,000 .

To payoff the national debt every man, women, and child in

the U.S.A. would have to pay $94,000.

Multiple Choice

Henry, Mason, and Priya are discussing their school's financial situation. What would they consider a budget deficit for their school?

• Having money left over after paying all expenses

• Not having enough revenue to pay all expenses

• Borrowing money to pay bills

• Creating a balanced budget

Below is the website that shows current up to the second national debt.
http:www.usdebtclock.org

The National Debt Clock is a live billboard that

displays current United States gross national debt
and the amount that each American family owes. It
was created by the New York real estate developer
Seymour Durst in 1989 who wanted to highlight the

rising national debt. It is currently installed on in

Manhattan, New York City.

The National Debt Clock

From Whom Does the Federal Government

Borrow Money?

The federal government borrows money from many different
sources:

1)

Individual citizens.

2)

Foreign governments

3)

Itself

Money is loaned to the federal government by people or other countries buying
U.S. securities, which are bonds or IOUs.

How does the Government Borrow from

itself?

•The main method is by taking money from trust funds like Social
Security and promising to pay it back later.

Currently, the federal government owes
the Social Security trust over 2.7 trillion

dollars

Multiple Choice

Benjamin has just finished calculating his monthly expenses. He realizes that he has some money left over after paying all his bills. What does this situation represent?

• Having a budget surplus

• Not having enough revenue to pay all expenses

• Borrowing money to pay bills

• Creating a balanced budget

Multiple Choice

In a class discussion, Evelyn asks whether the federal government typically runs surpluses or deficits each year. What is the correct answer?

• Surpluses

• Deficits

• Balanced budgets

• No consistent pattern

Multiple Choice

Rohan, Ava, and Emma are discussing the country's economy. Rohan asks, 'What is the national debt?'

• Money left over after Ava's family pays all their expenses

• Money borrowed by the federal government that has not been paid back

• Money borrowed by Emma's neighbors and foreign governments

• Money borrowed from trust funds that Rohan's parents have

Multiple Choice

Samuel, Avery, and Hannah were discussing the national debt at the end of 2022. How much was the national debt at that time?

• $30

• $30,000

• $30,000,000

• $30,000,000,000,000

Open Ended

What is key to a healthy budget?

Multiple Choice

To pay off the national debt how much would each person have to pay?

• $75,000

• $85,000

• $95,000

Multiple Choice

How much interest did the U.S. pay on the national debt in 2022?

• $275 billion

• $375 billion

• $475 billion

• $575 billion

Drag and Drop

The following two countries are the biggest holders of U.S. debt ​​

Placeholder

and ​

Placeholder

Drag these tiles and drop them in the correct blank above

Japan

China

India

Great Britain

Saudi Arabia

Drag and Drop

The federal government borrows money from many different sources. Two important

sources are ​

Placeholder

and ​

Placeholder

Drag these tiles and drop them in the correct blank above

individual citizens

foreign governments

individual banks

state governments

Dropdown

The federal government also borrows from itself. It does

this by taking money from trust funds like ​

Select answer

and promising to pay it back.

Dropdown

The federal government currently owes Social Security over

Select answer