Frequently Asked Questions about the Public Debt
General Information
Where is the money spent that is borrowed from the public and who decides where it goes?
The Bureau of Public Debt is responsible for accounting for and reporting the debt in accordance with statutory direction. The Bureau does not have any public policy decision-making authority. Visit the Financial Management Service web site for more information. Information about the "Budget of the United States" is available at the Government Printing Office web site.
What is the difference between the debt and the deficit?
The deficit is the fiscal year difference between what the United States Government (Government) takes in from taxes and other revenues, called receipts, and the amount of money the Government spends, called outlays. The items included in the deficit are considered either on-budget or off-budget.
You can think of the total debt as accumulated deficits plus accumulated off-budget surpluses. The on-budget deficits require the U.S. Treasury to borrow money to raise cash needed to keep the Government operating. We borrow the money by selling securities like Treasury bills, notes, bonds and savings bonds to the public.
The Treasury securities issued to the public and to the Government Trust Funds (Intragovernmental Holdings) then become part of the total debt. For information about the deficit, visit the Financial Management Service web site to view the Monthly Treasury Statement of Receipts and Outlays of the United States Government (MTS).
What's the difference between the Public Debt Outstanding and the Public Debt Subject to Limit?
The Public Debt Outstanding represents the face amount or principal amount of marketable and non-marketable securities currently outstanding. The Public Debt Subject to Limit is the maximum amount of money the Government is allowed to borrow without receiving additional authority from Congress. Furthermore, the Public Debt Subject to Limit is the Public Debt Outstanding adjusted for Unamortized Discount on Treasury Bills and Zero Coupon Treasury Bonds, Miscellaneous debt (very old debt), Debt held by the Federal Financing Bank and Guaranteed Debt.
Why does the debt only change once a day? Why doesn't Treasury keep a rolling tab?
Our current accounting system produces the Public Debt Outstanding amount each morning around 11:30 A.M. ET. Our system relies on reporting entities (for example, Federal Reserve Banks) to report a variety of Treasury security information at the end of the day. On the following business day, our accounting system processes this information and generates the Public Debt Outstanding for the previous day. Although we continually look for methods to improve our process, daily accounting is still the most effective, efficient, and accurate way to account for the debt.
Makeup of the Debt
Is there a report that lists the type of Treasury Securities that are issued to finance the debt, related maturity dates, and "Amount Outstanding?"
The Monthly Statement of the Public Debt (MSPD) is available online in summary and full versions, and lists the types of Treasury Securities issued to finance the Debt, the related maturity dates, and the "Amount Outstanding".
Ownership of the Debt
Who owns the debt?
The Treasury Bulletin, available online from the Financial Management Service categorizes ownership of U.S. Government securities by types of investors.
What is the Debt Held by the Public?
The Debt Held by the Public is all federal debt held by individuals, corporations, state or local governments, foreign governments, and other entities outside the United States Government less Federal Financing Bank securities. Types of securities held by the public include, but are not limited to, Treasury Bills, Notes, Bonds, TIPS, United States Savings Bonds, and State and Local Government Series securities.
What are Intragovernmental Holdings?
Intragovernmental Holdings are Government Account Series securities held by Government trust funds, revolving funds, and special funds; and Federal Financing Bank securities. A small amount of marketable securities are held by government accounts.
What is the Federal Financing Bank?
Obligations are issued to the public by the Federal Financing Bank (FFB) to finance its operations. Obligations are limited to $15 billion unless otherwise authorized by the Appropriations Acts. The FFB was established "to consolidate and reduce the government's cost of financing a variety of federal agencies and other borrowers whose obligations are guaranteed by the federal government." (The First Boston Corporation, The Pink Book: Handbook of U.S. Government & Federal Agency Securities, 34th ed., Probus, Chicago, 1990 pp. 87-88.)
Financing the Debt
Why does the debt sometimes decrease?
The Public Debt Outstanding decreases when there are more redemptions of Treasury securities than there are issues.
How do you make a contribution to reduce the debt?
Make your check payable to the Bureau of the Public Debt, and in the memo section, notate that it is a Gift to reduce the Debt Held by the Public. Mail your check to:
Attn Dept G
Bureau of the Public Debt
P. O. Box 2188
Parkersburg, WV 26106-2188
Note: The Bureau of the Public Debt's Office of Public Debt Accounting maintains this FAQ. Keep in mind that these questions may not fit all situations and are only intended as a guideline.
