RSSCategories of Federal Spending for Selected Years
The percentage of the federal budget devoted to mandatory spending has increased markedly over the past 40 years. Mandatory spending has doubled during the period, while discretionary spending has almost been cut in half. The increase in mandatory spending is due primarily to the growth of the three major entitlement programs. These programs are growing for several reasons:
- New programs have been added to provide benefits to individuals deemed to be in need of assistance who were previously not covered by other programs.
- Existing programs have been expanded to provide more benefits deemed to be necessary to fulfill the primary mission of the programs.
- The retirement of the Baby Boomers (those born from 1946 through 1964) are beginning to swell the ranks of the entitlement programs.
- Medical and prescription drug costs have outpaced the growth of the economy.
- Improved medical procedures and healthier lifestyles have increased life expectancies to all-time highs, thereby extending the coverage period of many beneficiaries.
Note: The percentage of the budget devoted to interest on the national debt was abnormally high in 1985 (14%) due to higher interest rates that were prevalent during the 1980s.
2 Responses to “Categories of Federal Spending for Selected Years”
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June 16th, 2008 at 10:51 pm
One astute reader, Larry Dosh, points out that interest percentage used here is actually interest on the publicly held portion of the national debt, or net interest. Interest paid between departments of the government (for the Social Security Trust Fund) is NOT included in this number. See this chart for a look at publicly held debt vs. intragovernmental holdings. See this chart for an explanation of intragovernmental holdings.
June 17th, 2008 at 4:01 pm
The current interest on the debt is low due to a shift of large amounts
of it to shorter term combined with the abnormally low current interest rates. Normal interest rates could easily increase the interest on the debt by a factor of 2. Continuing years of 1T deficits will double the interest due each year within a few years.