The Deficit and the Public Debt

May 2, 1936

Report Outline
State of the Federal Goverment's Finances
Federal Surpluses and Deficits of the Past
Budget Policies of Roosevelt Administration
The Future of the National Debt
Special Focus

State of the Federal Goverment's Finances

Overestimates and Underestimates of the Deficit

The Public Debt of the United States at the end of the present fiscal year, June 30, 1936, will approximate $34,500,000,000. The increase in debt during the year—$5,800,000,000, including bonds and cash to be paid out in connection with the bonus—will be the largest in the peacetime history of the country.

The deficit for the year will also register a new peacetime high. Secretary of the Treasury Morgenthau testified before the Senate Finance Committee, April 30, that the federal government's expenditures for the year, including bonus outlays, would exceed its receipts by $5,966,000,000. The deficit for the next fiscal year, he paid, would drop to $2,675,000,000 and would be only a little larger than was estimated by the President in his budget message at the opening of the present session of Congress.

Five days before the Secretary appeared before the Finance Committee, the President had spoken of the deficit for the present fiscal year as amounting to $3,000,000,000. In his speech before the National Democratic Club at New York, April 25, the President said:

ISSUE TRACKER for Related Reports
Federal Budget and National Debt
Sep. 01, 2017  National Debt
Jul. 12, 2013  Government Spending
May 15, 2012  State Capitalism
Mar. 18, 2011  National Debt
Nov. 14, 2008  The National Debt
Dec. 09, 2005  Budget Deficit
Apr. 13, 2001  Budget Surplus
Feb. 01, 1991  Recession's Regional Impact
Jan. 20, 1984  Federal Budget Deficit
Sep. 09, 1977  Federal Reorganization and Budget Reform
Nov. 24, 1972  Limits on Federal Spending
Jan. 08, 1969  Federal Budget Making
Dec. 06, 1967  National Debt Management
Aug. 01, 1962  Fiscal and Budget Policy
Nov. 27, 1957  National Debt Limit
Mar. 20, 1957  Spending Controls
Dec. 24, 1953  Public Debt Limit
Feb. 13, 1952  Tax and Debt Limitation
Nov. 30, 1949  Government Spending
Jan. 06, 1948  Legislative Budget-Making
May 23, 1944  The National Debt
Feb. 01, 1943  The Executive Budget and Appropriations by Congress
Dec. 27, 1939  Revision of the Federal Budget System
Oct. 10, 1938  The Outstanding Government Debt
Nov. 20, 1937  Budget Balancing vs. Pump Priming
May 02, 1936  The Deficit and the Public Debt
Oct. 19, 1934  The Federal Budget and the Public Debt
Feb. 10, 1933  Extraordinary Budgeting of Federal Finances
Dec. 01, 1932  Reduction of Federal Expenditures
Dec. 01, 1930  The National Budget System
Oct. 02, 1930  Federal Revenues and Expenditures
Nov. 02, 1927  The Public Debt and Foreign Loans
Nov. 15, 1926  Rising Cost of Government in the United States
Feb. 05, 1925  Four Years Under the Budget System
Deficit, Federal Debt, and Balanced Budget