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US ECONOMY FISCAL POLICYPart of THE EFFECT OF PRESIDENTIAL ECONOMIC POLICY ON THE ECONOMY

U.S. Budget Deficit by President

Which president had the highest budget deficit?

BY KIMBERLY AMADEO Updated December 20, 2021REVIEWED BY ERIKA RASURE

Which president ran the largest budget deficits? There are two ways to answer that question. The most popular way is to add up the deficits for each year the president was in office.

However, a president doesn’t control the first year’s deficit. The previous president’s federal budget is still in effect for most of that year. The federal government’s fiscal year runs from October 1 through September 30.¹ As a result, a new president has no influence on the deficit for January through September of that first year in office.

A better way to calculate the deficit is by looking at each president’s budget and then adding the deficits for those budgets.

Key Takeaways

A budget deficit results when the revenue from taxes is less than spending in a fiscal year.
Presidents influence the debt through policy decisions, but they can’t control mandatory spending enacted by Congress.
The four presidents with the biggest deficits have been Barack Obama, Donald Trump, George W. Bush, and Ronald Reagan.

4 Factors That Influence the Deficit

There are four factors that can influence each president’s deficit.

1. Mandatory Budget

The president has no control over the mandatory budget or its deficit. That includes Social Security and Medicare benefits.¹

These are the two biggest expenses that any president has. The acts of Congress that created the programs determine how much must be spent. The president’s budget can only estimate what these programs will cost. Unless the president gets Congress to change them, they must live with that spending.

2. Spending Control

The Constitution gave Congress—not the president—the power to control spending.² The president’s budget is just a starting point. Each house of Congress also prepares a discretionary spending budget.³

The two houses combine them into the final budget, which the president reviews and signs. If there’s a hitch in the budget process, Congress can keep federal agencies running at current budget levels with a continuing resolution, or else federal agencies will shut down .¹

There have been four shutdowns that lasted more than one business day. The first two happened in the winter of 1995-1996, and the third was in 2013. The fourth shutdown started in December 2018 and continued into January 2019.⁴

3. Inherited Policies

Presidents inherit their predecessors’ policies. For example, presidents will have lower revenue from predecessors’ tax cuts. They also must manage social programs initiated by prior acts of Congress.

4. Catastrophic Events

Some presidents have to confront catastrophic events. President Obama faced the 2008 financial crisis.⁵ President George W. Bush had to respond to the 9/11 terrorist attack and hurricanes Katrina and Rita. These responses came with economic price tags.

The 4 Presidents With the Worst Deficits So Far

The four presidents with the worst deficits have been Barack Obama, Donald Trump, George W. Bush, and Ronald Reagan.⁶

Barack Obama

President Obama had the largest deficits. By the end of his final budget, FY 2017, his budget deficits totaled $6.781 trillion over his eight years in office. That’s a 58% increase from President George W. Bush’s last budget.

Obama took office during the Great Recession. He immediately needed to spend billions to stop it. He convinced Congress to add $253 billion from the economic stimulus package to Bush’s FY 2009 budget. The American Recovery and Reinvestment Act added an additional $534 billion over the rest of Obama’s terms.⁷

In 2010, the Obama tax cut added $858 billion in deficits in its first two years. Federal income decreased due to lower tax receipts from the 2008 financial crisis.

Both President Obama and President Bush were subject to higher mandatory spending than their predecessors were.

Social security and Medicare benefits were eating up more of the budget, and healthcare costs were rising as the American population aged.

In 2010, Obama signed the Patient Protection and Affordable Care Act.⁸ It sought to reduce healthcare spending. The Congressional Budget Office (CBO) and the Joint Committee on Taxation estimated that the legislation would reduce federal deficits by $337 billion between 2017 and 2026.⁹

Donald Trump

President Trump took office in 2017. By the end of his term four years later, he was estimated to hold $6.6 trillion in deficits, a 33% increase. The CBO predicted that the COVID-19 pandemic would increase the FY 2020 deficit by $2.2 trillion and the FY 2021 deficit by $600 billion.¹⁰

In March 2020, Trump declared a state of emergency as the pandemic broke out in the United States. Nonessential businesses closed, and Americans were urged to shelter in place. Congress passed the $2 trillion CARES Act, along with other stimulus measures. The combination of reduced tax receipts and increased stimulus spending created record deficit levels.

George W. Bush

President Bush took office in 2001. He racked up $3.293 trillion in deficits during his two terms, a 57% increase.¹¹

Bush responded to the 9/11 attacks with the War on Terror, which raised military spending. The Bush tax cuts addressed the 2001 recession.¹² Unfortunately, the cuts did not sunset when the recession was over, which depleted revenues during the 2008 recession.

Bush attacked the financial crisis with the bank bailout. Congress added the bailout to the mandatory budget, where it became the Troubled Asset Relief Program (TARP).¹³

Ronald Reagan

President Reagan took office in 1981. He added $1.412 trillion in deficits and almost doubled the debt during his eight years in office.⁶ He fought the 1982 recession by signing the Economic Recovery Tax Act of 1981. It reduced the highest marginal income tax rate from 70% to 50% and reduced the corporate income tax for small companies with taxable incomes of $50,000 or less.¹⁴

Reagan also increased government spending by 2.5% per year. That included a 35% increase in the defense budget and an expansion of Medicare.

What Budget Deficits Hide

All presidents can employ sleight of hand to reduce the appearance of the deficit. They can borrow from federal retirement funds in off-budget transactions.

Each year’s deficit adds to the debt. But the total amount a president adds to the debt each year is usually more than the deficit.

For example, the Social Security Trust Fund has run a surplus since 1987.¹⁵ There have been more working people contributing via payroll taxes than retired people withdrawing benefits. The fund invests its surplus in U.S. Treasury notes.

The president can reduce the deficit by spending these funds instead of issuing new Treasurys. That makes the deficit by year less than what’s added to the debt by year.

For example, $8.588 trillion was added to the national debt under President Obama.¹⁶ But his total budget deficits totaled $6.781 trillion.⁶

Similarly, President Bush’s stated budget deficits totaled $3.293 trillion. But Bush added $5.849 trillion to the debt. The presidents who had the highest deficits are still those who contributed the most to the debt.

List of Presidents’ Budget Deficits by Fiscal Year

Although most other presidents have run deficits, none has yet came close to the four detailed above. One partial explanation is that the U.S. economy, as measured by gross domestic product (GDP), was so much smaller for other presidents.

For example, by the end of 1981, GDP was only $3.2 trillion, one-fifth of the roughly $16.3 trillion GDP by the end of 2012.¹⁷ Below are each president’s annual budget deficits since Woodrow Wilson.¹¹

President Donald Trump

Total Actual plus Budgeted = $6.612 trillion, a 33% increase

FY 2021: $966 billion budgeted + $600 billion from pandemic impact = $1.566 trillion
FY 2020: $1.083 trillion budgeted + $2.2 trillion from pandemic = $3.283 trillion
FY 2019: $984 billion
FY 2018: $779 billion

President Barack Obama

Total = $6.781 trillion, a 58% increase

FY 2017: $665 billion. Although Trump requested additional spending, Congress did not approve it.
FY 2016: $585 billion
FY 2015: $442 billion
FY 2014: $485 billion
FY 2013: $680 billion
FY 2012: $1.077 trillion
FY 2011: $1.300 trillion
FY 2010: $1.5 trillion. This is the sum of $1.294 trillion and $253 billion from the Obama Stimulus Act that was attached to the FY 2009 budget.

President George W. Bush

Total = $3.293 trillion, a 57% increase

FY 2009: $1.16 trillion. This amount is calculated from $1.413 trillion, minus $253 billion from Obama’s Stimulus Act.
FY 2008: $459 billion
FY 2007: $161 billion
FY 2006: $248 billion
FY 2005: $318 billion
FY 2004: $413 billion
FY 2003: $378 billion
FY 2002: $158 billion

President Bill Clinton

Total = $63 billion surplus, a 1% decrease

FY 2001: $128 billion surplus
FY 2000: $236 billion surplus
FY 1999: $126 billion surplus
FY 1998: $69 billion surplus
FY 1997: $22 billion
FY 1996: $107 billion
FY 1995: $164 billion
FY 1994: $203 billion

President George H.W. Bush

Total = $1.036 trillion, a 36% increase

FY 1993: $255 billion
FY 1992: $290 billion
FY 1991: $269 billion
FY 1990: $221 billion

President Ronald Reagan

Total = $1.412 trillion, a 142% increase

FY 1989: $153 billion
FY 1988: $155 billion
FY 1987: $150 billion
FY 1986: $221 billion
FY 1985: $212 billion
FY 1984: $185 billion
FY 1983: $208 billion
FY 1982: $128 billion

President Jimmy Carter

Total = $253 billion, a 36% increase

FY 1981: $79 billion
FY 1980: $74 billion
FY 1979: $41 billion
FY 1978: $59 billion

President Gerald Ford

Total = $181 billion, a 38% increase

FY 1977: $54 billion
FY 1976: $74 billion
FY 1975: $53 billion

President Richard Nixon

Total = $70 billion, a 20% increase

FY 1974: $6 billion
FY 1973: $15 billion
FY 1972: $23 billion
FY 1971: $23 billion
FY 1970: $3 billion

President Lyndon B. Johnson

Total = $36 billion, an 11% increase

FY 1969: $3 billion surplus
FY 1968: $25 billion
FY 1967: $9 billion
FY 1966: $4 billion
FY 1965: $1 billion

President John F. Kennedy

Total = $18 billion, a 6% increase

FY 1964: $6 billion
FY 1963: $5 billion
FY 1962: $7 billion

President Dwight Eisenhower

Total = $15 billion, a 6% increase

FY 1961: $3 billion
FY 1960: $0 billion with a slight surplus
FY 1959: $13 billion
FY 1958: $3 billion
FY 1957: $3 billion surplus
FY 1956: $4 billion surplus
FY 1955: $3 billion
FY 1954: $1 billion

President Harry Truman

Total = $5 billion, a 2% increase

FY 1953: $6 billion
FY 1952: $2 billion
FY 1951: $6 billion surplus
FY 1950: $3 billion
FY 1949: $1 billion surplus
FY 1948: $12 billion surplus
FY 1947: $4 billion surplus
FY 1946: $16 billion

President Franklin D. Roosevelt

Total = $194 billion, a 186% increase

FY 1945: $48 billion
FY 1944: $48 billion
FY 1943: $55 billion
FY 1942: $21 billion
FY 1941: $5 billion
FY 1940: $3 billion
FY 1939: $3 billion
FY 1938: $0 billion with a slight deficit
FY 1937: $2 billion
FY 1936: $4 billion
FY 1935: $3 billion
FY 1934: $4 billion

President Herbert Hoover

Total = $5 billion, a 30% increase

FY 1933: $3 billion
FY 1932: $3 billion
FY 1931: $0 billion (slight deficit)
FY 1930: $1 billion surplus

President Calvin Coolidge

Total = $5 billion surplus, a 26% decrease

FY 1929: $1 billion surplus
FY 1928: $1 billion surplus
FY 1927: $1 billion surplus
FY 1926: $1 billion surplus
FY 1925: $1 billion surplus
FY 1924: $1 billion surplus

President Warren G. Harding

Total = $1 billion surplus, a 6% decrease

FY 1923: $1 billion surplus
FY 1922: $0 billion with a slight surplus

President Woodrow Wilson

Total = $22 billion, a 775% increase

FY 1921: $1 billion surplus
FY 1920: $0 billion with a slight surplus
FY 1919: $13 billion
FY 1918: $9 billion
FY 1917: $1 billion
FY 1916: $0 billion with a slight surplus
FY 1915: $0 billion with a slight surplus
FY 1914: $0 billion

Previous Years

FY 1789 through FY 1913: $1 billion surplus

Frequently Asked Questions (FAQs)

Have any presidents not had a deficit?

Various presidents have had individual years with a surplus instead of a deficit. Most recently, Bill Clinton had four consecutive years of surplus, from 1998 to 2001. Since the 1960s, however, most presidents have posted a budget deficit each year.¹⁸

What causes a budget deficit?

In the most basic sense, a budget deficit is a result of spending more than anticipated, dealing with unexpected revenue shortfalls, or some combination of both. This could happen as a result of a natural disaster, a recession, unexpected job losses, or many other factors. In many cases, the government plans for a deficit because it hopes to use increased spending to stimulate the economy.

What does a budget deficit do to the national debt?

If there is a budget deficit, that means the national debt is also growing, because the only way to finance the deficit is to sell more government securities, thus increasing the debt. The debt is, essentially, an accumulation of each year’s deficits minus any surpluses.

ARTICLE SOURCES

PART OFThe Effect of Presidential Economic Policy on the Economy

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SearchGOabout:blankTable of Contents

US ECONOMY FISCAL POLICYPart of THE EFFECT OF PRESIDENTIAL ECONOMIC POLICY ON THE ECONOMY

U.S. Budget Deficit by President

Which president had the highest budget deficit?

BY KIMBERLY AMADEO Updated December 20, 2021REVIEWED BY ERIKA RASURE

Which president ran the largest budget deficits? There are two ways to answer that question. The most popular way is to add up the deficits for each year the president was in office.

A better way to calculate the deficit is by looking at each president’s budget and then adding the deficits for those budgets.

Key Takeaways

A budget deficit results when the revenue from taxes is less than spending in a fiscal year.
Presidents influence the debt through policy decisions, but they can’t control mandatory spending enacted by Congress.
The four presidents with the biggest deficits have been Barack Obama, Donald Trump, George W. Bush, and Ronald Reagan.

4 Factors That Influence the Deficit

There are four factors that can influence each president’s deficit.

1. Mandatory Budget

The president has no control over the mandatory budget or its deficit. That includes Social Security and Medicare benefits.¹

2. Spending Control

3. Inherited Policies

4. Catastrophic Events

The 4 Presidents With the Worst Deficits So Far

The four presidents with the worst deficits have been Barack Obama, Donald Trump, George W. Bush, and Ronald Reagan.⁶

Barack Obama

In 2010, the Obama tax cut added $858 billion in deficits in its first two years. Federal income decreased due to lower tax receipts from the 2008 financial crisis.

Both President Obama and President Bush were subject to higher mandatory spending than their predecessors were.

Social security and Medicare benefits were eating up more of the budget, and healthcare costs were rising as the American population aged.

Donald Trump

George W. Bush

President Bush took office in 2001. He racked up $3.293 trillion in deficits during his two terms, a 57% increase.¹¹

Bush attacked the financial crisis with the bank bailout. Congress added the bailout to the mandatory budget, where it became the Troubled Asset Relief Program (TARP).¹³

Ronald Reagan

Reagan also increased government spending by 2.5% per year. That included a 35% increase in the defense budget and an expansion of Medicare.

What Budget Deficits Hide

All presidents can employ sleight of hand to reduce the appearance of the deficit. They can borrow from federal retirement funds in off-budget transactions.

Each year’s deficit adds to the debt. But the total amount a president adds to the debt each year is usually more than the deficit.

The president can reduce the deficit by spending these funds instead of issuing new Treasurys. That makes the deficit by year less than what’s added to the debt by year.

For example, $8.588 trillion was added to the national debt under President Obama.¹⁶ But his total budget deficits totaled $6.781 trillion.⁶

List of Presidents’ Budget Deficits by Fiscal Year

President Donald Trump

Total Actual plus Budgeted = $6.612 trillion, a 33% increase

FY 2021: $966 billion budgeted + $600 billion from pandemic impact = $1.566 trillion
FY 2020: $1.083 trillion budgeted + $2.2 trillion from pandemic = $3.283 trillion
FY 2019: $984 billion
FY 2018: $779 billion

President Barack Obama

Total = $6.781 trillion, a 58% increase

FY 2017: $665 billion. Although Trump requested additional spending, Congress did not approve it.
FY 2016: $585 billion
FY 2015: $442 billion
FY 2014: $485 billion
FY 2013: $680 billion
FY 2012: $1.077 trillion
FY 2011: $1.300 trillion
FY 2010: $1.5 trillion. This is the sum of $1.294 trillion and $253 billion from the Obama Stimulus Act that was attached to the FY 2009 budget.

President George W. Bush

Total = $3.293 trillion, a 57% increase

FY 2009: $1.16 trillion. This amount is calculated from $1.413 trillion, minus $253 billion from Obama’s Stimulus Act.
FY 2008: $459 billion
FY 2007: $161 billion
FY 2006: $248 billion
FY 2005: $318 billion
FY 2004: $413 billion
FY 2003: $378 billion
FY 2002: $158 billion

President Bill Clinton

Total = $63 billion surplus, a 1% decrease

FY 2001: $128 billion surplus
FY 2000: $236 billion surplus
FY 1999: $126 billion surplus
FY 1998: $69 billion surplus
FY 1997: $22 billion
FY 1996: $107 billion
FY 1995: $164 billion
FY 1994: $203 billion

President George H.W. Bush

Total = $1.036 trillion, a 36% increase

FY 1993: $255 billion
FY 1992: $290 billion
FY 1991: $269 billion
FY 1990: $221 billion

President Ronald Reagan

Total = $1.412 trillion, a 142% increase

FY 1989: $153 billion
FY 1988: $155 billion
FY 1987: $150 billion
FY 1986: $221 billion
FY 1985: $212 billion
FY 1984: $185 billion
FY 1983: $208 billion
FY 1982: $128 billion

President Jimmy Carter

Total = $253 billion, a 36% increase

FY 1981: $79 billion
FY 1980: $74 billion
FY 1979: $41 billion
FY 1978: $59 billion

President Gerald Ford

Total = $181 billion, a 38% increase

FY 1977: $54 billion
FY 1976: $74 billion
FY 1975: $53 billion

President Richard Nixon

Total = $70 billion, a 20% increase

FY 1974: $6 billion
FY 1973: $15 billion
FY 1972: $23 billion
FY 1971: $23 billion
FY 1970: $3 billion

President Lyndon B. Johnson

Total = $36 billion, an 11% increase

FY 1969: $3 billion surplus
FY 1968: $25 billion
FY 1967: $9 billion
FY 1966: $4 billion
FY 1965: $1 billion

President John F. Kennedy

Total = $18 billion, a 6% increase

FY 1964: $6 billion
FY 1963: $5 billion
FY 1962: $7 billion

President Dwight Eisenhower

Total = $15 billion, a 6% increase

FY 1961: $3 billion
FY 1960: $0 billion with a slight surplus
FY 1959: $13 billion
FY 1958: $3 billion
FY 1957: $3 billion surplus
FY 1956: $4 billion surplus
FY 1955: $3 billion
FY 1954: $1 billion

President Harry Truman

Total = $5 billion, a 2% increase

FY 1953: $6 billion
FY 1952: $2 billion
FY 1951: $6 billion surplus
FY 1950: $3 billion
FY 1949: $1 billion surplus
FY 1948: $12 billion surplus
FY 1947: $4 billion surplus
FY 1946: $16 billion

President Franklin D. Roosevelt

Total = $194 billion, a 186% increase

FY 1945: $48 billion
FY 1944: $48 billion
FY 1943: $55 billion
FY 1942: $21 billion
FY 1941: $5 billion
FY 1940: $3 billion
FY 1939: $3 billion
FY 1938: $0 billion with a slight deficit
FY 1937: $2 billion
FY 1936: $4 billion
FY 1935: $3 billion
FY 1934: $4 billion

President Herbert Hoover

Total = $5 billion, a 30% increase

FY 1933: $3 billion
FY 1932: $3 billion
FY 1931: $0 billion (slight deficit)
FY 1930: $1 billion surplus

President Calvin Coolidge

Total = $5 billion surplus, a 26% decrease

FY 1929: $1 billion surplus
FY 1928: $1 billion surplus
FY 1927: $1 billion surplus
FY 1926: $1 billion surplus
FY 1925: $1 billion surplus
FY 1924: $1 billion surplus

President Warren G. Harding

Total = $1 billion surplus, a 6% decrease

FY 1923: $1 billion surplus
FY 1922: $0 billion with a slight surplus

President Woodrow Wilson

Total = $22 billion, a 775% increase

FY 1921: $1 billion surplus
FY 1920: $0 billion with a slight surplus
FY 1919: $13 billion
FY 1918: $9 billion
FY 1917: $1 billion
FY 1916: $0 billion with a slight surplus
FY 1915: $0 billion with a slight surplus
FY 1914: $0 billion

Previous Years

FY 1789 through FY 1913: $1 billion surplus

Frequently Asked Questions (FAQs)

Have any presidents not had a deficit?

What causes a budget deficit?

What does a budget deficit do to the national debt?

ARTICLE SOURCES

PART OFThe Effect of Presidential Economic Policy on the Economy

FOLLOW USFacebook Twitter Instagram Linkedin

The Balance is part of the Dotdash Meredith publishing family.

U.S. Budget Deficit by President

Which president had the highest budget deficit?

Key Takeaways

4 Factors That Influence the Deficit

1. Mandatory Budget

2. Spending Control

3. Inherited Policies

4. Catastrophic Events

The 4 Presidents With the Worst Deficits So Far

Barack Obama

Donald Trump

George W. Bush

Ronald Reagan

What Budget Deficits Hide

List of Presidents’ Budget Deficits by Fiscal Year

President Donald Trump

President Barack Obama

President George W. Bush

President Bill Clinton

President George H.W. Bush

President Ronald Reagan

President Jimmy Carter

President Gerald Ford

President Richard Nixon

President Lyndon B. Johnson

President John F. Kennedy

President Dwight Eisenhower

President Harry Truman

President Franklin D. Roosevelt

President Herbert Hoover

President Calvin Coolidge

President Warren G. Harding

President Woodrow Wilson

Previous Years

Frequently Asked Questions (FAQs)

Have any presidents not had a deficit?

What causes a budget deficit?

What does a budget deficit do to the national debt?

ARTICLE SOURCES

U.S. Budget Deficit by President

Which president had the highest budget deficit?

Key Takeaways

4 Factors That Influence the Deficit

1. Mandatory Budget

2. Spending Control

3. Inherited Policies

4. Catastrophic Events

The 4 Presidents With the Worst Deficits So Far

Barack Obama

Donald Trump

George W. Bush

Ronald Reagan

What Budget Deficits Hide

List of Presidents’ Budget Deficits by Fiscal Year

President Donald Trump

President Barack Obama

President George W. Bush

President Bill Clinton

President George H.W. Bush

President Ronald Reagan

President Jimmy Carter

President Gerald Ford

President Richard Nixon

President Lyndon B. Johnson

President John F. Kennedy

President Dwight Eisenhower

President Harry Truman

President Franklin D. Roosevelt

President Herbert Hoover

President Calvin Coolidge

President Warren G. Harding

President Woodrow Wilson

Previous Years

Frequently Asked Questions (FAQs)

Have any presidents not had a deficit?

What causes a budget deficit?

What does a budget deficit do to the national debt?

ARTICLE SOURCES

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