This chart illustrates the total federal surplus or deficit, representing the difference between the federal government's total revenue and its total expenditures. A surplus occurs when revenue exceeds spending, while a deficit occurs when spending surpasses revenue. The federal surplus or deficit is a key indicator of the government's fiscal health and its ability to meet financial obligations. Persistent deficits may increase the national debt, while surpluses can contribute to debt reduction. Deficit data is annual (fiscal year totals) from FRED series FYFSD. S&P 500 overlay uses monthly close values from 1980 onward for higher resolution. Data is embedded directly — no API key required.