Treasury Budget = Government Receipts - Government Spending.

The Federal Government Treasury Budget, Budget Deficit or Budget Surplus is the cash difference between Government Receipts and Spending.

A negative reading is a Budget Deficit. Changes in the budget balance of the annual fiscal year (which begins in October) are followed as an indicator of budgetary trends and the thrust of fiscal policy.

The Federal Budget Balance is not seasonally adjusted. Consequently, it is useful to compare the current month's budget deficit or surplus to the same month for a couple of years. Some months are known to have large surpluses because quarterly estimated tax payments are received by the government.

The slower economy, weakening receipts, and a wider federal budget deficit means that there is pressure to cut spending even further. Therefore, disappointing receipt growth because of a weak economy, which is unfortunate from a business cycle standpoint it is also bad news for the Treasury.

Do not confuse with U.S. Trade Deficit

The trade deficit is when the total goods and services the U.S. imports is greater than the total it exports. We have categorized trade deficit within "Balance of Payments". For more on Trade Deficits, see U.S. Trade Balance or International Trade.

Budget Deficit as a % of GDP

The Goal is to reduce the Budget Deficit.
Congress has shown little ability recently to make difficult changes to tax levels or spending programs to reduce the deficit.

The budget deficit for fiscal 2011 was 8.7% of GDP, gross domestic product, down from 9% in 2010, according to the Treasury data. US is finacing the Banks at a rate which is less than inflation.

The gap reached 10% of GDP in 2009, the highest since 1945, according to the Congressional Budget Office.

While the budget deficit widened in dollar terms in the latest fiscal year, it narrowed to 8.7% of U.S. GDP, gross domestic product, from 9% in fiscal 2010. Economists said the GDP gauge is a more meaningful metric than the size of the budget shortfall measured in dollars.

Quantitative Easing

The Fed has been buying assets as part of a quantitative-easing program, an unconventional monetary policy designed to lower long-term interest rates and boost economic growth.

As a result, the U.S. Federal Reserve's Balance Sheet is showing the various Fed programs for injecting liquidity into the economy and how much the Fed has used each for adding or withdrawing reserves.

Interpreting the data

The government ran an all-time record deficit of $1.41 trillion in fiscal 2009, and a $1.29 trillion imbalance in 2010. If this pace continues for the rest of the year, the deficit will still come in at nearly $1.1 trillion.

Growth is the miracle Budget Deficit cure

When the economy expands, more people work and they work more hours at higher wages. That leads to more tax revenues.

At the same time, when more people work, fewer people tend to need unemployment benefits, which helps lead to lower spending. That dynamic, combined with efforts in Washington to hold down spending, is helping to shrink the annual budget deficit.

Budget

A budget is a way to compare and manage your income and expenses. A balanced budget has income equal to or exceeding expenses. When your income is higher than your expenses, you have a budget surplus; if you find that expenses exceed income, you have a budget deficit. Keeping a budget is important because it allows you to set and manage your personal financial goals. For example, if you find that you have a budget surplus every month, you can then start to set savings goals. If you find that you have a deficit, you can set a goal to make more money by finding a new, better-paying job. Maintaining a budget also allows you to monitor these goals regularly to see if you're on track to achieve them.