FY 2014 U.S. Federal Budget and Spending
Summary of the President's Budget, Why It Didn't Pass, and What Was Spent
The president's budget for Fiscal Year 2014 was supposed to kick-off negotiations with Congress over how to fund government operations for October 1, 2013, through September 30, 2014. But Congress didn't follow the normal budget process.
Why? They were a minority that wanted to force their policy on the majority, overriding the safeguards of democracy. They wanted to defund Obamacare, reduce the national debt, and lower mandatory spending. This was something they couldn't do in a normal budget process. The government shutdown in 2013 details the events that led to it and its effects on the economy.
February 12, 2013 - President Obama outlined his budget priorities in the 2013 State of the Union Address. They were to reduce Medicare spending as outlined in the Simpson-Bowles report, create jobs, and attack climate change. He also urged Congress to vote on immigration reform and gun control bills. Finally, he proposed several education programs and shifts in defense spending.
April 10, 2013 - President Obama submitted the FY 2014 budget to Congress. The Republican-controlled House ignored it.
March 21, 2013 - The House passed its own created by Committee Chairman Paul Ryan called the Path to Prosperity.
It would balance the budget in 10 years by reducing mandatory spending, requiring Congressional approval outside of the normal budget process. It would repeal Obamacare, privatize Medicare, and change Medicaid to state block grants. It would open the Keystone pipeline. This was ignored by the Democratic-controlled Senate.
March 23, 2013 - The Senate approved its budget proposal prepared by Committee Chairwoman Patty Murray. It planned to spend just $91 billion more than the House budget. But the two budgets were miles apart in philosophy, so the next step was never taken. That would have been forming a Congressional Conference Committee to create a budget that was agreeable to both.
September 28 - 30, 2013 - The House submitted a continuing resolution to defund Obamacare. The Senate rejected it and submitted a resolution that funded Obamacare. Neither budget passed, so the government shut down on October 1, 2013.
October 16, 2013 - Obama signed Congressional bill authorizing funding until January 15, 2014, allowing time for the Congressional Conference Committee to propose a joint budget.
December 15, 2013 - Deadline for the Conference Committee to agree on a FY 2014 budget. If no agreement was reached by January 15, 2014, then the second round of sequestration would have kicked in.
January 16, 2014 - Congress approved the Bi-Partisan Budget Act.
President's FY 2014 Budget Summary
Here's a summary of the FY 2014 budget, compared to what was actually spent according to the .
Revenue. The federal government expected to receive $3.034 trillion in revenue but instead received $3.021 trillion.
Income taxes contributed 46 percent, payroll taxes were 34 percent, corporate taxes were 11 percent, and the remaining 9 percent came from excise taxes, estate taxes, interest on Federal Reserve deposits, and other miscellaneous sources. Tax Freedom Day occurred on April 18. That's how long each taxpayer worked to pay for all federal revenue collected.
Total Spending. The Office of Management and Budget estimated the federal government would spend $3.78 trillion. Instead, the cuts from sequestration kicked in. Since government spending is a component of gross domestic product, these spending cuts slow economic growth. This is very risky at this phase in the business cycle, which is just starting to expand after the 2008 financial crisis. As a result, $3.506 trillion was spent.
The mandatory budget consumes 60 percent of total spending.
The OMB estimated that $2.308 trillion would be spent on Social Security and other benefits. Actual spending was $2.156 trillion. This spending was already approved by Congress, so this portion of the budget is an estimate. This is the portion of the budget that tea party Republicans were most opposed to, but they didn't have the votes in Congress to change it. The only portions affected by were Medicare provider payments and the unemployment trust fund. Here's the budget breakdown:
- Social Security -- $860 billion budgeted, and $845 billion was spent. Currently 100 percent paid for by payroll taxes.
- Medicare --$524 billion budgeted, $505 billion spent. Only 57 percent funded by payroll taxes and premiums.
- Medicaid --$304 billion budgeted, $301 billion spent.
- All other -- $497 billion budgeted, $504 billion spent. These include programs like Food Stamps, Unemployment Compensation, and Supplemental Security for the Disabled, the Affordable Care Act and the Troubled Asset Relief Program.
Interest on the national debt is not part of the mandatory budget, but the payments must be made. If they aren't, then the United States has defaulted on its debt. There was $223 billion budgeted and $229 billion spent. The facts are in OMB’s .
|Department||Budgeted (from FY 2014 Budget)||Actual (From FY 2016 Budget)|
|Department of Defense||$520.5||$496.1|
|National Nuclear Security Administration||$11.2||$11.2|
|(includes Foreign Aid)||$46.9||$42.9|
In addition, the Allocation Committee added $85.1 billion in Overseas Contingency Operations to pay for the Afghanistan War and another $6.7 billion for other emergency funding such as disaster relief and wildlife suppression. This is outside the Budget Act. As a result, actual discretionary spending was $1.350 trillion.
Many discretionary programs were closed for 16 days thanks to the government shutdown in October. It's difficult to tell from this major budget report how much was really saved.
Total military spending was $746.8 billion. That includes the Department of Defense base budget of $496.3 billion and the Overseas Contingency Operations spending of $85.1 billion. It should also include $165.4 billion to fund other departments that support our nation's defense. These include:
- Homeland Security with $39.8 billion.
- Veterans Affairs, $63.3 billion.
- State Department, $42. 9 billion.
- FBI, $8.246 billion.
- National Nuclear Security Administration, $11.2 billion.
Compare to Other U.S. Federal Budgets:
- Current Federal Budget: FY 2019
- FY 2018
- FY 2016
- FY 2015
- FY 2013
- FY 2012
- FY 2011
- FY 2010
- FY 2009
- FY 2008
- FY 2007
- FY 2006