When was the last time the US had a budget surplus rather than a deficit?
Table of Contents
- 1 When was the last time the US had a budget surplus rather than a deficit?
- 2 Did the United States have a federal deficit or surplus in 1998 approximately how much?
- 3 Which of the following would occur if the federal government decided to use a budget surplus to reduce the existing debt?
- 4 Why is a surplus important?
When was the last time the US had a budget surplus rather than a deficit?
2001
According to the Congressional Budget Office, the United States last had a budget surplus during fiscal year 2001.
Did the United States have a federal deficit or surplus in 1998 approximately how much?
$69.3 billion
1998 United States federal budget
| Submitted | February 6, 1997 |
|---|---|
| Total expenditures | $1.69 trillion (requested) $1.65 trillion (actual) 18.5\% of GDP (actual) |
| Surplus | $69.3 billion (actual) 0.8\% of GDP (actual) |
| Debt | $5.478 trillion (at fiscal end) 61.2\% of GDP |
| GDP | $8.955 trillion |
Why is it important to analyze actual budget surpluses or deficits at the end of the month?
Monthly budget analysis is important because: It helps in understanding the causes of variances. Helps in identifying strengths and weaknesses.
In what year did the United States have a surplus?
What does it mean when there is a surplus, balanced budget, and deficit? A surplus occurs when the government collects more money than it spends. The last surplus for the federal government was in 2001. A balanced budget occurs when the amount the government spends equals the amount the government collects.
Which of the following would occur if the federal government decided to use a budget surplus to reduce the existing debt?
Which of the following would occur if the federal government decided to use a budget surplus to reduce the existing debt? Crowding in and private sector output would increase.
Why is a surplus important?
Surplus and Growth Economic surplus is essential for small businesses that want to grow and expand. When a company has a large amount of surplus, it means cash is flowing into the company and it can invest the surplus in new products, services, equipment and employees to facilitate growth.
How does budget surplus influence the level of economic activity in an economy?
A surplus implies the government has extra funds. These funds can be allocated toward public debt, which reduces interest rates and helps the economy. A budget surplus can be used to reduce taxes, start new programs or fund existing programs such as Social Security or Medicare.