A budget surplus occurs when the government takes in more money than it spends. With our booming economy pouring billions in revenue into federal coffers, the United States is enjoying ever-growing budget surpluses and projections of much more to come.

"On-Budget" and "Off-Budget"
Surplus numbers are referred to as either on-budget or off-budget. The two numbers added together equal the total federal surplus.

On-budget totals exclude Social Security inflows and outflows as well as the net cash flow to the Postal Service. On-budget surplus totals are sometimes referred to as the "Non-Social Security Surplus." This is the amount we actually can spend on things.

Off-budget surpluses represent the amount of the Social Security and Postal Service surplus. The Off-budget surplus is best thought of as "untouchable" and not available as a funding source for anything other than Social Security needs.

How Much Extra Do We Have?
In 1998, after three decades of annual budget deficits, the United States had a surplus of $69 billion. In 1999 the surplus was 124 billion off budget and $1 billion on budget.

The latest CBO forecast for 2000 is $200 billion, of which $40 billion will be off budget. (Some private financial analysts forecast a 2000 surplus of up to $210 billion.)

Over the next ten years the most conservative forecast from the CBO calls for $838 billion in off budget surpluses.

Who Is The CBO?
The Congressional Budget Office (CBO) was created by the Congressional Budget and Impoundment Control Act of 1974. CBO's mission is to provide the Congress with the objective, timely, nonpartisan analyses needed for economic and budget decisions and with the information and estimates required for the Congressional budget process.

How Big Will The Surplus Grow?
The CBO's most recent set of budget projections for fiscal years 2000 through 2010 was released electronically on March 30, 2000, in its publication "An Analysis of the President's Budgetary Proposals for Fiscal Year 2001."

As requested by the Senate Committee on Appropriations, the Congressional Budget Office (CBO) has estimated the effects of the proposals in the President's budget request for fiscal year 2001 using CBO's economic and technical estimating assumptions.

Under the Administration's policies, CBO estimates a total budget surplus of $190 billion for 2001--consisting of an on-budget surplus of $24 billion and an off-budget surplus of $166 billion.

The CBO's most conservative estimate of the on-budget surplus over the next ten years is $838 billion with their most optimistic estimate calling for 1.9 trillion dollars.

How Much Is A Trillion Dollars?
Lets start with one billion, a number we all use, but may not understand.

One billion = one thousand million.
One trillion = one thousand billion.