By this standard, the deficits of the late 19903 have been “prudent” because they have led to a growth rate in the stock of debt smaller than the growth rate of real GDP, and thus a reduction in the debt-to-GDP ratio. For example, in 1995 and 1996, the debt-to-GDP ratio reached its recent maximum, of slightly more than 50 percent. After 1993, however, the combined effects of a rapidly growing economy and some planned expenditure reductions produced a decline in the annual budget deficit from $203 billion in 1994 to $164 billion in 1995, $107 billion in 1996, and $22 billion in 1997.