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Monday, February 04, 2008
Fun(damental) FY09 Budget Facts: the National Debt
The FY09 budget proposal released this morning by the White House is replete with interesting and important budget facts. First and foremost of these is the big picture -- the status and story of the national debt.
The most salient (and shocking) facts are these:
Since 2002, the debt has reached the limit five times... The debt limit was increased to $6,400 billion on June 28, 2002, to $7,384 billion on May 27, 2003, to $8,184 billion on November 19, 2004, to $8,965 billion on March 20, 2006, and to $9,815 billion on September 29, 2007. The debt subject to limit is estimated to increase to $9,625 billion by the end of 2008.
At the end of 2007, foreign holdings of Treasury debt were $2,240 billion, which was 44 percent of the total debt held by the public. Foreign central banks owned 69 percent of the Federal debt.
The $9 trillion national debt includes $430 billion interest, of which $237 billion was paid out in FY 2007 (Treasury is not required to make immediately interest expense payments on amounts borrowed from the government, e.g., from trusts funds such as the Social Security trust fund). The corresponding figures for FY 2009 (est.) are $487 billion and $260 billion. See Table 3.2 on p. 73. Interest expense continues to be the fast-growing part of the federal budget.
For the full debt story as described in the budget proposal, click here.
Posted by Dana Chasin
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