Intra-governmental Debt

Intra-governmental Debt
When government programs achieve surpluses, they do not keep the respective funds. Social Security, Medicaid and Medicare health service systems, unemployment insurance – and many more funds – allow Treasury to use surplus funds to fund ongoing operations.

Example: Social security currently makes more money from payroll taxes than it pays out– the excess is used to purchase Treasury bonds, and the money gained by theTreasury is in turn used to fund current expenditures.

Back to National Debt