Transfers to people A.One way to reduce federal budget surpluses deficits is to increase taxes. Part 2 Another way to decrease federal budget deficits surpluses is to cut back on government spending, particularly on transfers to people taxing the rich public debt charges , defined as benefits guaranteed under government programs such as Old Age Security and employment insurance. include military spending and national defence. B. have trended downward since the mid-1950s. C. are used to finance public goods. D. now makes up almost 30 percent of the total federal budget