deficits
percent of GDP
         RECEIPTS, OUTLAYS, AND SURPLUSES OR DEFICITS(-): 1940-2008
                           (billions of dollars)

                                           Public
        Total    Total  Unified   Public  Def w/o    Gross    OASDI  Medicare
Year Receipts  Outlays  Deficit  Deficit    OASDI  Deficit  Surplus  Surplus
---- --------  -------  -------  -------  -------  -------  -------  --------
1940      6.5      9.5     -2.9                                -0.6      0.0
1941      8.7     13.7     -4.9     -5.5     -6.1     -6.8     -0.7      0.0
1942     14.6     35.1    -20.5    -19.5    -20.4    -21.7     -0.8      0.0
1943     24.0     78.6    -54.6    -60.0    -61.1    -63.4     -1.0      0.0
1944     43.7     91.3    -47.6    -57.0    -58.2    -61.4     -1.2      0.0
1945     45.2     92.7    -47.6    -50.4    -51.6    -56.0     -1.2      0.0
1946     39.3     55.2    -15.9     -6.7     -7.7    -10.9     -1.0      0.0
1947     38.5     34.5      4.0     17.5     16.4     13.8     -1.2      0.0
1948     41.6     29.8     11.8      8.1      6.8      5.1     -1.2      0.0
1949     39.4     38.8      0.6      1.9      0.7     -0.6     -1.3      0.0
1950     39.4     42.6     -3.1     -4.7     -6.3     -4.2     -1.6      0.0
1951     51.6     45.5      6.1      4.7      2.9      1.6     -1.8      0.0
1952     66.2     67.7     -1.5     -0.4     -2.3     -3.8     -1.9      0.0
1953     69.6     76.1     -6.5     -3.6     -5.4     -6.9     -1.8      0.0
1954     69.7     70.9     -1.2     -6.1     -7.8     -4.8     -1.7      0.0
1955     65.5     68.4     -3.0     -2.1     -3.2     -3.6     -1.1      0.0
1956     74.6     70.6      3.9      4.5      3.0      1.7     -1.5      0.0
1957     80.0     76.6      3.4      2.8      2.1      0.4     -0.8      0.0
1958     79.6     82.4     -2.8     -7.0     -7.6     -7.4     -0.5      0.0
1959     79.2     92.1    -12.8     -8.4     -7.7     -7.8      0.7      0.0
1960     92.5     92.2      0.3     -2.1     -1.9     -3.1      0.2      0.0
1961     94.4     97.7     -3.3     -1.5     -1.9     -2.1     -0.4      0.0
1962     99.7    106.8     -7.1     -9.7     -8.4    -10.3      1.3      0.0
1963    106.6    111.3     -4.8     -6.0     -5.2     -7.4      0.8      0.0
1964    112.6    118.5     -5.9     -2.9     -3.5     -5.7     -0.6      0.0
1965    116.8    118.2     -1.4     -3.9     -4.1     -6.3     -0.2      0.0
1966    130.8    134.5     -3.7     -2.9     -2.3     -6.2      0.6     -0.9
1967    148.8    157.5     -8.6     -2.9     -6.9    -11.9     -4.0     -1.0
1968    153.0    178.1    -25.2    -22.9    -25.5    -28.2     -2.6      0.1
1969    186.9    183.6      3.2     11.4      7.7      2.9     -3.7     -0.7
1970    192.8    195.6     -2.8     -5.1    -10.9    -15.2     -5.9     -0.3
1971    187.1    210.2    -23.0    -19.8    -22.9    -27.3     -3.0     -0.7
1972    207.3    230.7    -23.4    -19.3    -22.4    -27.8     -3.0      0.1
1973    230.8    245.7    -14.9    -18.5    -19.0    -30.4     -0.5     -1.8
1974    263.2    269.4     -6.1     -2.8     -4.6    -17.6     -1.8     -4.1
1975    279.1    332.3    -53.2    -51.0    -53.0    -58.0     -2.0     -2.1
1976    298.1    371.8    -73.7    -82.7    -79.5    -87.0      3.2     -0.7
1977    355.6    409.2    -53.7    -71.7    -66.4    -77.4      5.3     -1.3
1978    399.6    458.7    -59.2    -58.0    -53.8    -70.2      4.3     -2.4
1979    463.3    504.0    -40.7    -33.2    -31.2    -52.9      2.0     -2.6
1980    517.1    590.9    -73.8    -71.6    -70.5    -79.6      1.1     -0.7
1981    599.3    678.2    -79.0    -77.5    -72.5    -85.8      5.0     -2.8
1982    617.8    745.7   -128.0   -135.2   -127.2   -142.5      7.9     -4.8
1983    600.6    808.4   -207.8   -212.7   -225.3   -234.3    -12.7      6.2
1984    666.5    851.9   -185.4   -169.7   -170.0   -192.9     -0.3     -5.6
1985    734.1    946.4   -212.3   -200.3   -207.8   -252.8     -7.5     -5.9
1986    769.2    990.4   -221.2   -233.4   -239.5   -303.1     -6.1    -16.1
1987    854.4   1004.1   -149.7   -149.1   -168.7   -225.5    -19.6     -8.9
1988    909.3   1064.5   -155.2   -161.9   -200.7   -255.1    -38.8    -15.3
1989    991.2   1143.6   -152.5   -139.1   -191.5   -266.7    -52.4    -22.4
1990   1032.0   1253.2   -221.2   -220.8   -279.1   -338.5    -58.2    -15.5
1991   1055.0   1324.4   -269.3   -277.4   -331.0   -391.9    -53.5    -15.4
1992   1091.3   1381.7   -290.4   -310.7   -361.5   -403.6    -50.7    -13.6
1993   1154.4   1409.5   -255.1   -248.7   -295.4   -349.3    -46.8    -10.2
1994   1258.6   1461.9   -203.3   -184.7   -241.4   -292.3    -56.8     -1.1
1995   1351.8   1515.8   -164.0   -171.3   -231.8   -277.3    -60.4      7.1
1996   1453.1   1560.5   -107.5   -129.7   -196.1   -260.9    -66.4     -8.9
1997   1579.3   1601.3    -22.0    -38.3   -119.6   -187.7    -81.3      1.1
1998   1721.8   1652.6     69.2     51.2    -48.2   -109.0    -99.4     -6.6
1999   1827.5   1701.9    125.6     88.7    -36.0   -127.3   -124.7    -26.3
2000   2025.2   1788.8    236.4    222.6     70.7    -23.2   -151.8    -29.9
2001   1991.2   1863.9    127.3     90.2    -72.8   -141.2   -163.0    -25.2
2002   1853.2   2011.0   -157.8   -220.8   -379.9   -428.5   -159.1    -28.6

2003*  1836.2   2140.4   -304.2   -338.0   -497.2   -553.6   -159.2    -16.8
2004*  1922.0   2229.4   -307.4   -287.6   -459.2   -568.7   -171.6    -31.4
2005*  2135.2   2343.4   -208.2   -220.5   -416.0   -516.7   -195.5    -32.0
2006*  2263.2   2463.7   -200.5   -216.1   -426.3   -515.9   -210.2    -40.7
2007*  2398.1   2576.2   -178.1   -194.0   -421.0   -504.1   -227.0    -40.1
2008*  2520.9   2710.5   -189.6   -206.3            -530.2             -42.1

RECEIPTS, OUTLAYS, AND SURPLUSES OR DEFICITS(-) FROM PRIOR BUDGET: 2002-2007
                           (billions of dollars)

                                           Public
        Total    Total  Unified   Public  Def w/o    Gross    OASDI  Medicare
Year Receipts  Outlays  Deficit  Deficit    OASDI  Deficit  Surplus  Surplus
---- --------  -------  -------  -------  -------  -------  -------  --------
2002*  1946.1   2052.3   -106.2   -157.5   -315.2   -366.8    157.7     33.2
2003*  2048.1   2128.2    -80.2    -92.8   -269.9   -388.8    177.1     37.7
2004*  2175.4   2189.1    -13.7    -29.4   -224.7   -366.6    195.4     43.5
2005*  2338.0   2276.9     61.1     52.0   -164.8   -314.4    216.7     46.4
2006*  2455.3   2369.1     86.2     77.7   -149.6   -298.9    227.2     55.1
2007*  2571.7   2467.7    104.0     91.1   -151.6   -297.5    242.7     55.5

-------------------------------------------------------------------------------------
         RECEIPTS, OUTLAYS, AND SURPLUSES OR DEFICITS(-): 1940-2008
                            (percentage of GDP)

                                           Public
        Total    Total  Unified   Public  Def w/o    Gross    OASDI  Medicare     GDP
Year Receipts  Outlays  Deficit  Deficit    OASDI  Deficit  Surplus  Surplus   ($bil)
---- --------  -------  -------  -------  -------  -------  -------  -------  -------
1940      6.8      9.8     -3.0                                -0.6      0.0     96.7
1941      7.6     12.0     -4.3     -4.8     -5.4     -6.0     -0.6      0.0    114.0
1942     10.1     24.4    -14.2    -13.5    -14.1    -15.0     -0.6      0.0    144.2
1943     13.3     43.6    -30.3    -33.3    -33.9    -35.2     -0.6      0.0    180.1
1944     20.9     43.7    -22.8    -27.3    -27.9    -29.4     -0.6      0.0    209.0
1945     20.4     41.9    -21.5    -22.8    -23.3    -25.3     -0.5      0.0    221.3
1946     17.6     24.8     -7.2     -3.0     -3.5     -4.9     -0.5      0.0    222.7
1947     16.4     14.7      1.7      7.5      7.0      5.9     -0.5      0.0    234.6
1948     16.2     11.6      4.6      3.1      2.7      2.0     -0.5      0.0    256.4
1949     14.5     14.3      0.2      0.7      0.3     -0.2     -0.5      0.0    271.5
1950     14.4     15.6     -1.1     -1.7     -2.3     -1.6     -0.6      0.0    273.4
1951     16.1     14.2      1.9      1.5      0.9      0.5     -0.6      0.0    321.0
1952     19.0     19.4     -0.4     -0.1     -0.7     -1.1     -0.5      0.0    348.8
1953     18.6     20.4     -1.7     -1.0     -1.4     -1.8     -0.5      0.0    373.4
1954     18.4     18.7     -0.3     -1.6     -2.1     -1.3     -0.4      0.0    378.0
1955     16.6     17.3     -0.8     -0.5     -0.8     -0.9     -0.3      0.0    395.2
1956     17.4     16.5      0.9      1.0      0.7      0.4     -0.3      0.0    427.7
1957     17.7     17.0      0.8      0.6      0.5      0.1     -0.2      0.0    450.7
1958     17.3     17.9     -0.6     -1.5     -1.6     -1.6     -0.1      0.0    461.1
1959     16.1     18.7     -2.6     -1.7     -1.6     -1.6      0.1      0.0    492.1
1960     17.8     17.8      0.1     -0.4     -0.4     -0.6      0.0      0.0    518.9
1961     17.7     18.4     -0.6     -0.3     -0.4     -0.4     -0.1      0.0    531.8
1962     17.5     18.8     -1.3     -1.7     -1.5     -1.8      0.2      0.0    568.5
1963     17.8     18.6     -0.8     -1.0     -0.9     -1.2      0.1      0.0    599.7
1964     17.6     18.5     -0.9     -0.4     -0.5     -0.9     -0.1      0.0    641.3
1965     17.0     17.2     -0.2     -0.6     -0.6     -0.9     -0.0      0.0    687.9
1966     17.3     17.8     -0.5     -0.4     -0.3     -0.8      0.1     -0.1    754.2
1967     18.3     19.4     -1.1     -0.4     -0.8     -1.5     -0.5     -0.1    813.5
1968     17.6     20.5     -2.9     -2.6     -2.9     -3.3     -0.3      0.0    868.4
1969     19.7     19.3      0.3      1.2      0.8      0.3     -0.4     -0.1    949.2
1970     19.0     19.3     -0.3     -0.5     -1.1     -1.5     -0.6     -0.0   1013.2
1971     17.3     19.4     -2.1     -1.8     -2.1     -2.5     -0.3     -0.1   1081.4
1972     17.5     19.5     -2.0     -1.6     -1.9     -2.3     -0.3      0.0   1181.5
1973     17.6     18.8     -1.1     -1.4     -1.5     -2.3     -0.0     -0.1   1308.1
1974     18.3     18.7     -0.4     -0.2     -0.3     -1.2     -0.1     -0.3   1442.1
1975     17.9     21.3     -3.4     -3.3     -3.4     -3.7     -0.1     -0.1   1559.8
1976     17.2     21.4     -4.2     -4.8     -4.6     -5.0      0.2     -0.0   1736.7
1977     18.0     20.8     -2.7     -3.6     -3.4     -3.9      0.3     -0.1   1971.3
1978     18.0     20.7     -2.7     -2.6     -2.4     -3.2      0.2     -0.1   2218.6
1979     18.5     20.1     -1.6     -1.3     -1.2     -2.1      0.1     -0.1   2503.8
1980     18.9     21.6     -2.7     -2.6     -2.6     -2.9      0.0     -0.0   2732.1
1981     19.6     22.2     -2.6     -2.5     -2.4     -2.8      0.2     -0.1   3061.6
1982     19.1     23.1     -4.0     -4.2     -3.9     -4.4      0.2     -0.1   3228.6
1983     17.5     23.5     -6.0     -6.2     -6.5     -6.8     -0.4      0.2   3440.5
1984     17.4     22.2     -4.8     -4.4     -4.4     -5.0     -0.0     -0.1   3839.4
1985     17.7     22.9     -5.1     -4.8     -5.0     -6.1     -0.2     -0.1   4136.6
1986     17.5     22.5     -5.0     -5.3     -5.4     -6.9     -0.1     -0.4   4401.4
1987     18.4     21.6     -3.2     -3.2     -3.6     -4.9     -0.4     -0.2   4647.0
1988     18.1     21.2     -3.1     -3.2     -4.0     -5.1     -0.8     -0.3   5014.7
1989     18.3     21.2     -2.8     -2.6     -3.5     -4.9     -1.0     -0.4   5405.5
1990     18.0     21.8     -3.9     -3.9     -4.9     -5.9     -1.0     -0.3   5735.6
1991     17.8     22.3     -4.5     -4.7     -5.6     -6.6     -0.9     -0.3   5930.4
1992     17.5     22.2     -4.7     -5.0     -5.8     -6.5     -0.8     -0.2   6218.6
1993     17.6     21.5     -3.9     -3.8     -4.5     -5.3     -0.7     -0.2   6558.4
1994     18.1     21.1     -2.9     -2.7     -3.5     -4.2     -0.8     -0.0   6944.6
1995     18.5     20.7     -2.2     -2.3     -3.2     -3.8     -0.8      0.1   7324.0
1996     18.9     20.3     -1.4     -1.7     -2.5     -3.4     -0.9     -0.1   7694.6
1997     19.3     19.6     -0.3     -0.5     -1.5     -2.3     -1.0      0.0   8185.2
1998     19.9     19.1      0.8      0.6     -0.6     -1.3     -1.1     -0.1   8663.9
1999     20.0     18.6      1.4      1.0     -0.4     -1.4     -1.4     -0.3   9137.7
2000     20.8     18.4      2.4      2.3      0.7     -0.2     -1.6     -0.3   9718.8
2001     19.9     18.6      1.3      0.9     -0.7     -1.4     -1.6     -0.3  10021.5
2002     17.9     19.5     -1.5     -2.1     -3.7     -4.1     -1.5     -0.3  10336.6

2003*    17.1     19.9     -2.8     -3.1     -4.6     -5.1     -1.5     -0.2  10756.8
2004*    17.0     19.7     -2.7     -2.5     -4.1     -5.0     -1.5     -0.3  11303.1
2005*    18.0     19.7     -1.8     -1.9     -3.5     -4.3     -1.6     -0.3  11883.6
2006*    18.1     19.7     -1.6     -1.7     -3.4     -4.1     -1.7     -0.3  12482.6
2007*    18.3     19.7     -1.4     -1.5     -3.2     -3.8     -1.7     -0.3  13104.2
2008*    18.3     19.7     -1.4     -1.5              -3.9              -0.3  13751.5

RECEIPTS, OUTLAYS, AND SURPLUSES OR DEFICITS(-) FROM PRIOR BUDGET: 2002-2007
                            (percentage of GDP)

                                           Public
        Total    Total  Unified   Public  Def w/o    Gross    OASDI  Medicare     GDP
Year Receipts  Outlays  Deficit  Deficit    OASDI  Deficit  Surplus  Surplus   ($bil)
---- --------  -------  -------  -------  -------  -------  -------  -------  -------
2002*    18.8     19.8     -1.0     -1.5     -3.0     -3.5      1.5      0.3  10361.6
2003*    18.8     19.5     -0.7     -0.8     -2.5     -3.6      1.6      0.3  10922.3
2004*    18.9     19.0     -0.1     -0.3     -1.9     -3.2      1.7      0.4  11525.8
2005*    19.2     18.7      0.5      0.4     -1.4     -2.6      1.8      0.4  12158.9
2006*    19.2     18.5      0.7      0.6     -1.2     -2.3      1.8      0.4  12803.3
2007*    19.1     18.3      0.8      0.7     -1.1     -2.2      1.8      0.4  13448.0

* estimated

Note: Public Deficit equals change in Public Debt; Gross Deficit equals change
      Gross Debt;  Gross Debt equals Public Debt plus debt held by government
      accounts; OASDI includes Old-Age and Survivors Insurance Fund (OAS) and
      Disability Insurance Fund (DI); negative numbers denote deficits
Source: Budget of the United States Government, FY 2004, Historical Tables,
        tables 1.1, 7.1, 13.1
        (prior budget) Budget of the United States Government, FY 2003,
        Historical Tables, tables 1.1, 7.1, 13.1

================================================================================

Among the points that the above tables illustrate are the following:

1) The gross deficit reached a record level of $428 billion in 2002.
   It is projected to reach $504 billion in 2007, an increase of $207
   billion over last year's projection of $297 billion.

2) The public deficit is projected to reach a record level of $338
   billion in 2003.  It is projected to drop to $194 billion in 2007,
   an increase of $285 billion over last year's projection of a $91
   billion surplus.

3) The unified deficit is projected to reach a record level of $304
   billion in 2003.  It is projected to drop to $178 billion in 2007,
   an increase of $282 billion over last year's projection of a $104
   billion surplus.  The unified deficit is the deficit that is most
   often reported and, as the above graph shows, is very nearly equal
   to the public deficit.

The following points show the relationship between deficits and their
corresponding debts.  This is important since it is the debt that we
are paying interest on and are obligated to pay back.  The figures
for the debts can be found at debt04.html.

4) The gross deficit is projected to reach 5.1 percent of GDP in 2003
   and decrease to 3.9 percent of GDP by 2008.  Meanwhile, the gross
   debt is projected to continue rising as a percent of GDP, reaching
   68.3 percent of GDP in 2008.  In order for the gross debt to
   stabilize at the current 60 percent of GDP, the gross deficit would
   need to stabilize at 60 percent of the projected growth in GDP.
   As GDP is projected to grow at about 5 percent from 2003 to 2008,
   the gross deficit would need to stablize at about 3 percent of GDP.

5) The public deficit is projected to reach 2.8 percent of GDP in 2003
   and decrease to 1.4 percent of GDP by 2008.  Meanwhile, the public
   debt is projected to stabilize at between 36 and 37 percent of GDP
   through 2008.  In order for the public debt to stabilize at 36
   percent of GDP, the public deficit needs to stabilize at 36 percent
   of the projected growth in GDP (about 5 percent).  This works out
   to about 1.8 percent of GDP.

================================================================================
            DEBT HELD BY GOVERNMENT ACCOUNTS (billions of dollars)

                                    Investment or disinvestment  Holdings
                                   -----------------------------   end of
                                     2002   % of    2003    2004     2004   % of
Description                        actual  total    est.    est.     est.  total
---------------------------------- ------  -----  ------  ------  -------  -----
Old-age and survivors trust fund..  139.6   67.2   145.7   158.7   1478.2   46.9
Civil Service retirement & disabil   31.1   15.0    28.9    30.7    633.3   20.1
Hospital insurance trust fund.....   31.8   15.3    27.0    27.1    283.0    9.0
Military retirement trust fund....    5.4    2.6    12.5    13.7    188.6    6.0
Disability insurance trust fund...   19.4    9.4    13.3    12.9    181.5    5.8
Unemployment trust fund...........  -20.4   -9.8   -18.4     0.8     50.6    1.6
Federal Deposit Insurance Corp....    0.5    0.2     1.5     0.6     46.7    1.5
Housing and Urban Development.....    4.3    2.1     7.4     5.3     40.9    1.3
Uniformed Services Retiree Health.    0.0    0.0    18.2    20.0     38.2    1.2
Highway and Airport trust funds...   -7.9   -3.8     2.0     2.0     33.8    1.1
Supplementary medical insurance...   -3.2   -1.5   -10.2     4.2     32.9    1.0
Other government accounts.........    7.0    3.3   -12.3     4.9    146.9    4.7
--------------------------------------------------------------------------------
Total investment in Federal debt..  207.7  100.0   215.6   281.1   3154.7  100.0

Source: Budget of the United States Government, FY 2004, Analytical
        Perspectives, page 306, table 13-4

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