The Reagan plan to get America back on track with tax and spending cuts and by cutting Cabinet departments to fulfill his vision of smaller government just did not materialize. Although the tax cuts went through in 1981, by 1982 they were mostly repealed.
The Energy and Education departments were never cut as promised by Reagan and the Veterans Affairs department was added during his presidency. During the Reagan years, federal government executive branch employment rose from 4.9 million to 5.3 million. In comparison, Bill Clinton reduced the size of the federal government executive branch employment from 2.9 million to 2.6 million.
At the time of Reagan’s first inauguration, the federal budget included 599 billion dollars per year in revenue, 678 billion dollars per year in spending. There was an annual deficit of 79 billion dollars. By the time Reagan left office in 1989, the federal budget was 909 billion dollars of revenue, 1.1 trillion dollars of spending and a deficit of 155 billion dollars.