Guess What? Federal Spending Increased in 2007

The federal government spent a total of $2.56 trillion on domestic programs in 2007, an increase of 4.4 percent over 2006, according to the Census Bureau's Consolidated Federal Funds Report: 2007 (.pdf) In other words, the federal government spends about $7 billion a day. Lunch is on us.

Nearly half of the total spending -- $1.22 trillion -- went to Social Security, Medicare and Medicaid. Retirement and disability payments to individuals accounted for $783 billion (more than 30 percent) of total federal spending. Of that amount, 80 percent, or $623 billion, went to Social Security recipients.

Grants accounted for $496 billion, or 20 percent of all federal spending. Salaries and wages to federal employees totaled $253 billion. Department of Defense payrolls made up 38 percent of that amount, followed by federal government civilian payrolls (37 percent) and the U.S. Postal Service payroll (25 percent).

Also See:
Federal Budget Process
U.S. Budget and Spending Primer (US Economy)