United States Government Spending: Expenditure Level and Composition

The analysis summarizes the scale and structure of United States's public expenditure across annual and longer periods.

Government expense in United States represented 24.9% of GDP in 2023. Compensation of employees accounted for 8.1% of expense, goods and services for 6.5%, subsidies and other transfers for 64.1%, and interest payments for 12.9%. The largest listed expenditure component was subsidies and other transfers, with a share of 64.1%. Total expense changed by +2.6 percentage points of GDP over five years.

United States Government Spending by Year

Data source: World Bank, World Development Indicators — Expense, % of GDP (GC.XPN.TOTL.GD.ZS); Compensation of employees, % of expense (GC.XPN.COMP.ZS); Goods and services expense, % of expense (GC.XPN.GSRV.ZS); Subsidies and other transfers, % of expense (GC.XPN.TRFT.ZS); Interest payments, % of expense (GC.XPN.INTP.ZS); Other expense, % of expense (GC.XPN.OTHR.ZS); Interest payments, % of revenue (GC.XPN.INTP.RV.ZS); General government final consumption expenditure, % of GDP (NE.CON.GOVT.ZS).
License: CC BY-4.0. Retrieved 2026-07-12.

About the Indicators

Expense, % of GDP. Total government expense — all cash payments for operating activities and transfers — as a share of GDP.

Compensation of employees, % of expense. The share of government expense paid as wages, salaries and social contributions to public employees.

Goods and services expense, % of expense. The share of government expense spent on goods and services used in the production of public services.

Subsidies and other transfers, % of expense. The share of government expense paid as subsidies, grants and social benefits to households, businesses and other governments.

Interest payments, % of expense. The share of government expense paid as interest on public debt.

Other expense, % of expense. The share of government expense not classified under compensation, goods and services, transfers or interest.

Interest payments, % of revenue. Interest paid on public debt, expressed as a share of total government revenue — a measure of the interest burden on the public purse.

General government final consumption expenditure, % of GDP. Government current spending on goods and services (including compensation of employees), a national-accounts measure distinct from total government expense.