Fiscal Year 2010 Budget Revenue:
In Fiscal Year
2010, the Federal government took in $2.165 trillion in revenue. It had budgeted receipts of $2.6 trillion, but the recession
took a bite out of the projections. Income taxes contributed 45%, social security taxes were 34%, corporate taxes were 12%, and the remaining 9% was from excise taxes. (Source for actual FY 2010 income and spending: OMB, FY 2012 Budget,Table S-4, FY 2010 Actual Spending
FY 2010 Budget Spending:
Spending was budgeted at $3.8 trillion. Actual spending was less, at $3.456 trillion. Over half went toward Mandatory Budget
, such as Social Security, Medicare and Medicaid. These expenditures have been mandated by law, and require an act of Congress to change. Around 40% of spending, or $1.306 trillion, went toward the Discretionary Budget
, which the President and Congress negotiate each year.
FY 2010 Mandatory Spending:
Mandatory Spending was budgeted at $2 trillion, or 52.6% of the U.S. Federal Budget. The estimates were close, as $1.954 trillion was actually spent. It included Social Security ($705 billion), Medicare ($446 billion) and Medicaid ($273 billion).
For the first time, the mandatory budget included an outlay of $45 billion for the Economic Stimulus Act. That's because the act, also known as ARRA, had been approved by Congress in 2009, and was therefore now a mandated program. The outlay was for the TARP program, which was set up to bail out national and community banks that were saddled with subprime mortgages. However, the largest banks repaid the TARP loans because they didn't like the U.S. government owning their stock. Therefore, TARP added revenue to the budget of $110 billion. This money was used in later years to fund homeowner mortgage refinancing.
Other mandatory programs, such as Food Stamps, Unemployment Compensation, and Supplemental Security for the Blind and Disabled, were budgeted at $590 billion. However, actual costs came in at $644 billion because so many people needed benefits. Reducing the Mandatory budget was one reason President Obama fought so hard for health care reform. For more, see FY 2010 Mandatory Budget.
FY 2010 Discretionary Spending Details:
The FY 2010 Discretionary budget was $1.37 trillion. This was due to a budgeted 13% increase in non-Security spending to $695 billion. Spending for nearly all agencies was up across the board. The budget included $24 billion for jobs initiatives. For more, see FY 2010 Discretionary Budget
.(Source: OMB, Fiscal Year 2010, Table S-4)
However, actual spending was much lower. Only $1.306 trillion was spent, mainly due to a huge decline in non-security spending. Federal departments were only allowed to spend $491 billion. For more detail, see FY 2010 Discretionary Budget.
Military Budget Went Up:
The budget for Security spending increased to $850 billion. This included $167.3 billion for overseas contingency operations, which meant increased troops in Afghanistan and a slow wind-down in Iraq. For more, see FY 2010 Military Budget
Budget Deficit Was Projected to Be the Largest in History:
The OMB original budget planned for a record $1.6 trillion deficit. However, it actually came in at $1.3 trillion. This came in at second place to the FY 2009 deficit of $1.4 trillion.
The U.S. Federal government's deficit spending has been ongoing since 2002. It has led to an unsustainable Federal debt. Continued deficit spending puts downward pressure on the dollar's value, increasing the price of imports. It increases the expectation that this debt will be paid by future generations, acting as a tax. This puts downward pressure on economic growth.
Compare to Other U.S. Federal Budgets: