# Only Pay What You Must Spend: On-Demand Privacy Budget Payment for Differentially Private RAG

arXiv: https://arxiv.org/abs/2609.27406 · HTML: https://mlsanity.com/paper/2609.27406/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Privacy and security of RAG, one of 15 directions in Retrieval-augmented generation.
- Builds on 31 of its 48 references that are in the map.
- First posted on arXiv 23 Sep 2026.

## Placed in

- Retrieval-augmented generation / [Privacy and security of RAG](https://mlsanity.com/rag/privacy-and-security-of-rag/)

## Builds on (most cited first, 30 of 31)

- [Retrieval-Augmented Generation for Knowledge-Intensive NLP Tasks](https://mlsanity.com/paper/2005.11401/) (2020)
- [BERTScore: Evaluating Text Generation with BERT](https://mlsanity.com/paper/1904.09675/) (2019)
- [Dense Passage Retrieval for Open-Domain Question Answering](https://mlsanity.com/paper/2004.04906/) (2020)
- [OPT: Open Pre-trained Transformer Language Models](https://mlsanity.com/paper/2205.01068/) (2022)
- [TriviaQA: A Large Scale Distantly Supervised Challenge Dataset for Reading Comprehension](https://mlsanity.com/paper/1705.03551/) (2017)
- [Deep Learning with Differential Privacy](https://mlsanity.com/paper/1607.00133/) (2016)
- [Membership Inference Attacks against Machine Learning Models](https://mlsanity.com/paper/1610.05820/) (2016)
- [Pythia: A Suite for Analyzing Large Language Models Across Training and Scaling](https://mlsanity.com/paper/2304.01373/) (2023)
- [Membership Inference Attacks From First Principles](https://mlsanity.com/paper/2112.03570/) (2021)
- [Eliciting Latent Predictions from Transformers with the Tuned Lens](https://mlsanity.com/paper/2303.08112/) (2023)
- [Contrastive Decoding: Open-ended Text Generation as Optimization](https://mlsanity.com/paper/2210.15097/) (2022)
- [Transformer Feed-Forward Layers Build Predictions by Promoting Concepts in the Vocabulary Space](https://mlsanity.com/paper/2203.14680/) (2022)
- [Large Language Models Can Be Strong Differentially Private Learners](https://mlsanity.com/paper/2110.05679/) (2021)
- [Concentrated Differential Privacy: Simplifications, Extensions, and Lower Bounds](https://mlsanity.com/paper/1605.02065/) (2016)
- [Trusting Your Evidence: Hallucinate Less with Context-aware Decoding](https://mlsanity.com/paper/2305.14739/) (2023)
- [ChatDoctor: A Medical Chat Model Fine-Tuned on a Large Language Model Meta-AI (LLaMA) Using Medical Domain Knowledge](https://mlsanity.com/paper/2303.14070/) (2023)
- [Analyzing Leakage of Personally Identifiable Information in Language Models](https://mlsanity.com/paper/2302.00539/) (2023)
- [Quantifying Privacy Risks of Masked Language Models Using Membership Inference Attacks](https://mlsanity.com/paper/2203.03929/) (2022)
- [The Good and The Bad: Exploring Privacy Issues in Retrieval-Augmented Generation (RAG)](https://mlsanity.com/paper/2402.16893/) (2024)
- [Synthetic Text Generation with Differential Privacy: A Simple and Practical Recipe](https://mlsanity.com/paper/2210.14348/) (2022)
- [Differentially Private Synthetic Data via Foundation Model APIs 2: Text](https://mlsanity.com/paper/2403.01749/) (2024)
- [Harnessing large-language models to generate private synthetic text](https://mlsanity.com/paper/2306.01684/) (2023)
- [Differentially Private Bias-Term Fine-tuning of Foundation Models](https://mlsanity.com/paper/2210.00036/) (2022)
- [Privacy-Preserving Retrieval-Augmented Generation with Differential Privacy](https://mlsanity.com/paper/2412.04697/) (2024)
- [PrE-Text: Training Language Models on Private Federated Data in the Age of LLMs](https://mlsanity.com/paper/2406.02958/) (2024)
- [Riddle Me This! Stealthy Membership Inference for Retrieval-Augmented Generation](https://mlsanity.com/paper/2502.00306/) (2025)
- [Private prediction for large-scale synthetic text generation](https://mlsanity.com/paper/2407.12108/) (2024)
- [RAG with Differential Privacy](https://mlsanity.com/paper/2412.19291/) (2024)
- [Synthesizing Privacy-Preserving Text Data via Finetuning without Finetuning Billion-Scale LLMs](https://mlsanity.com/paper/2503.12347/) (2025)
- [InvisibleInk: High-Utility and Low-Cost Text Generation with Differential Privacy](https://mlsanity.com/paper/2507.02974/) (2025)

## Abstract (arXiv)

Deploying large language models (LLMs) on sensitive data via Retrieval-Augmented Generation (RAG) introduces severe privacy risks. Recent studies apply Differential Privacy (DP) to LLMs with RAG for formal privacy guarantees. However, existing DP-RAG frameworks rapidly exhaust the privacy budget. Although recent efforts attempt to save the budget by narrowing the retrieval scope or sparsifying private generation, these methods themselves cumulatively consume the budget, whereas they could actually rely merely on public information or at a negligible one-time privacy cost. This mismatch fails to align budget expenditure with the model's actual reliance on private data, causing substantial waste on operations that require no private access. To address this, we propose SparsePay-RAG, adopting "only pay what you must spend" as its core principle. Using public information as a zero-privacy prior, it charges the privacy budget only for the private increment. Specifically, SparsePay-RAG narrows the retrieval scope via public topic-guided clustering, adaptively controls private access frequency without privacy cost through isotonic cross-layer trajectory fitting, and compresses per-access budget via DP contrastive decoding. Under strong privacy constraints, experiments show SparsePay-RAG achieves superior privacy-utility trade-offs over baselines.