FY 2023 Spending Was $1 Trillion Higher Than Projected Before Biden’s Policies

President Joe Biden has repeatedly claimed that his policies have reduced the deficit. In reality, his Administration has made the fiscal trajectory even less sustainable by increasing government spending and the deficit.

Real wages for the average American worker are 4.5 percent lower today than they were in January 2021 as a result of high inflation.

The latest analysis from the Economic Policy Innovation Center shows how Biden’s policies intentionally increased spending by nearly $1 trillion above projections in 2023.

  • The Fiscal Year 2023 deficit was 76% higher than the pre-Biden baseline projected.
  • The higher than projected deficit occurred despite actual revenues $237.1 billion above the pre-Biden baseline.
  • The entire increase in the deficit is due to actual outlays being nearly $1 trillion higher in FY 2023 than forecast by CBO prior to enactment of President Biden’s policies.
  • FY 2023 outlays were $969.6 billion higher than the pre-Biden projection because policy choices made by President Biden and Congress to increase spending, and the high inflation that resulted from excessive government spending.
  • Net interest costs were 137% higher than projected due to higher debt and higher interest rates on the national debt.
    • The $381 billion increase in net interest costs accounted for 39.3% of the total increase in higher FY 2023 outlays above the pre-Biden baseline.
  • Other significant contributors to higher spending included Medicaid ($124 billion above pre-Biden baseline), the FDIC Deposit Insurance Fund ($97 billion above pre-Biden baseline), Social Security ($79 billion above pre-Biden baseline), and Food Stamps ($57 billion above pre-Biden baseline).

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