Breakdown of the President’s Fiscal Year 2024 Budget (2024)

FAQs

What is the federal budget for FY 2024? ›

Federal outlays in 2024 total $6.5 trillion, which amounts to 23.1 percent of GDP. They stay close to that level through 2028 and then increase, reaching 24.1 percent of GDP by 2034. Growth in spending on programs that benefit elderly people and rising net interest costs drive those increases.

FY 2024 DEFENSE FUNDING LEVELS

Within this topline, the legislation authorizes $841.4 billion for the Department of Defense (DOD), $32.4 billion for national security programs within the Department of Energy (DOE), and $438.0 million in defense-related activities.

CDC. This bill includes $9.2 billion, an increase of $4.5 million from FY23, for CDC. This funding includes: $350 million, or level funding, for public health infrastructure and capacity nationwide.

Government spending is broken down into two primary categories: mandatory and discretionary. Mandatory spending represents nearly two-thirds of annual federal spending. This type of spending does not require an annual vote by Congress. The second major category is discretionary spending.

The most significant tax and benefit decisions announced by the chancellor, in terms of fiscal cost, were as follows: National insurance contributions (NICs). From 6 April 2024: The main rate of class 1 employee NICs will be reduced from 10% to 8%.

In 2023, major entitlement programs—Social Security, Medicare, Medicaid, Obamacare, and other health care programs—consumed 50 percent of all federal spending. Soon, this spending will be larger than the portion of spending for all other priorities (such as national defense) combined.

The Senate passed a fiscal 2024 funding package late Friday that includes a total of $6.72 billion for the FDA, which was signed by President Biden on Saturday. That total, which funds the FDA until Sept.

As shown in Figure 1, the Governor's budget proposes $1.3 billion to support DOJ operations in 2024-25—a decrease of $47 million (or 4 percent) over the revised amount for 2023-24.

As Figure A suggests, Social Security is the single largest mandatory spending item, taking up 38% or nearly $1,050 billion of the $2,736 billion total. The next largest expenditures are Medicare and Income Security, with the remaining amount going to Medicaid, Veterans Benefits, and other programs.

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What is the largest source of revenue for the federal government? ›

Sources of Federal Revenues

Individual income taxes are the largest single source of federal revenues, constituting nearly one-half of all receipts.

The FY 2024 base begins at the FY 2023 Enacted level of $12.3 billion. In addition to $537 million to maintain current staffing levels, the IRS requires another $281 million to reach current operating levels. The additional base adjustment entails supplementary labor costs within Taxpayer Services and Enforcement.

The Biden Administration has worked to reverse these trends, providing federal employees a 4.6 percent pay raise in 2023 and a 5.2 percent raise in 2024. Nonetheless, federal employee pay increases have failed to keep pace with rising labor and living costs.

Food and Drug Administration (FDA): The bill provides $6.72 billion in total funding for the FDA, which includes $3.52 billion in discretionary funding. The bill provides $7 million to conduct oversight of cosmetics for the first time ever and $1.5 million to reduce animal testing through alternative methods.

Finance Minister Nirmala Sitharaman is set to present the Union Budget 2024 in late July, marking her seventh budgetary address. Given that Sitharaman had already announced the interim budget in February, there is increasing concern over whether or not the FM will slash income tax rates.