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Debt and Deficits terms
The national debt, federal deficits, the Congressional Budget Office and the interest the country pays.
Balanced budget amendment A proposed constitutional amendment requiring the federal government to balance its budget, usually with exceptions for emergencies. Budget deficit The amount by which federal spending exceeds revenue in a given year, financed by borrowing. Crowding out The idea that government borrowing raises interest rates or uses resources that would otherwise go to private investment and spending. Debt ceiling A statutory cap on the total amount the Treasury may borrow to pay obligations Congress has already approved. Debt-to-GDP ratio Federal debt measured as a share of the economy's annual output, used to judge whether borrowing is sustainable. National debt The total amount the federal government owes from past borrowing, including debt held by the public and by government accounts. PAYGO A budget rule requiring that new mandatory spending or tax cuts be offset by spending cuts or tax increases. Sequestration Automatic, across-the-board cuts to federal spending triggered when budget limits or deficit targets are not met. Social Security trust fund The accounts, holding special Treasury securities, that receive Social Security payroll taxes and pay benefits. Unfunded liabilities Promised future benefits, such as Social Security and Medicare payments, that are not covered by dedicated funding projected to be available.