iCivics Money Matters

Money Matters $

EXPLORING THE MONEY MATTERS OF THE FEDERAL GOVERNMENT

Where Federal Money Comes From $ The money that the government runs on is raised through taxes. That’s right! The money raised by the government through taxes is called revenue!

Where Federal Money Comes From $

TOTAL: $2,381,000,000,000

Where Federal Money Goes $ FEDERAL BUDGET: A plan for how the government brings in and spends revenue

Defense

Social Security Medicare & Medicaid Other Mandatory Other Discretionary Interest

Federal Spending $ National Defense

Social Security Income Security Medicare

These are just broad categories!! Let’s break them down…

Health Net Interest Veterans Benefits

Education & Employment Transportation International Affairs

Administration of Justice Resources & Environment Science & Technology

Government Agriculture Community & Regional Development

Energy

Two Possible Outcomes $ The government The government OR spends LESS than it spends MORE than raises in taxes so it raises in taxes so that there is money that it must borrow left over! money!

Deficit

Surplus

Two Possible Outcomes $ This chart shows that there has been a deficit almost every year since 1980.

Revenue Short of Budget in Billions Deficit: more money spent than earned Surplus: less money spent than earned

500 400 300 200 100 0 -100 -200 -300 1980

1985

1990

1995

2000

2005