The Federal deficit (or surplus) is the difference between spending and revenues each year. The projected deficit for FY 2007 is $344 billion ($244 billion projected by the Office of Management and Budget on February 5, 2007, plus assumed enactment of the President`s requested FY 2007 $99.6 billion supplemental appropriation for the wars in Iraq and Afghanistan).

The Federal debt (accumulated deficits) is the total amount the Federal government owes to holders of US Treasury securities, including private sector businesses and individuals, state and local governments, foreign governments, and Federal trust funds (e.g. Social Security).