Budget Balance
The annual budget deficit is the difference between actual cash collections and outlays during a given fiscal year, which runs from October 1 to September 30.These differences can make it more challenging to determine how much the government actually spends relative to tax revenues. The increase in the national debt during a given year is a helpful measure to determine this amount. From FY 2003-2007, the national debt increased approximately $550 billion per year on average. For the first time in FY 2008, the U.S. added $1 trillion to the national debt. In relative terms, from 2003-2007 the government spent roughly $1.20 for each $1.00 it collected in taxes. (Source: U.S. Department of the Treasury, Wikipedia)