Big-Ticket Government Purchases

According to the Office of Management and Budget (OMB), the federal government spent an estimated $3.7 trillion in 2013.  Keep in mind this $3.7 trillion budget only applies to the federal government.  Each state has its own tax regime, as do municipalities in the form of property taxes.

There are often misconceptions about what the government spends money on.  While the federal balance sheet is very complex due to on- vs. off-balance sheet accounting, here are some big-ticket items (2012 data):

Source:  http://usbudgetalert.com/spending.php

Here are estimated 2013 budget figures (gross data that excludes offsetting trust fund accounting):

Social Security	$818 billion
Defense	$660 billion
Income Security*	$564 billion
Medicare	$511 billion
Interest on National Debt	$421 billion
Health Care Services	$334 billion

*Federal pensions, unemployment, housing assistance, food and nutrition assistance, other income security

Source:  http://www.whitehouse.gov/sites/default/files/omb/budget/fy2014/assets/hist03z2.xls

These six items alone add up to $3.3 trillion, representing the vast majority of the budget.  International affairs, science, space, technology, energy, environment, agriculture, commerce, transportation, community development, education, veterans, justice, and general government are among other expenses.

This demonstrates what lawmakers need to prioritize if meaningful spending cuts will ever be made to close our gaping budget deficits.  The complication, of course, is that there is minimal political willpower to touch any of these items.