historical tables - budget of the u. s. government

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O f f i c e o f M a n a g e m e n t a n d B u d g e t

w w w . b u d g e t . g o v

Fiscal Year 2011

Historical TablesBudget of the U. S. Government


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Budget of the United States Government, Fiscal

Year 2011 contains the Budget Message o the President,

inormation on the Presidents priorities, budget over-views organized by agency, and summary tables.

Analytical Perspectives, Budget of the UnitedStates Government, Fiscal Year 2011 contains analy-ses that are designed to highlight specifed subject ar-eas or provide other signifcant presentations o budget

data that place the budget in perspective. This volumeincludes economic and accounting analyses; inormation

on Federal receipts and collections; analyses o Federalspending; inormation on Federal borrowing and debt;

baseline or current services estimates; and other techni-cal presentations.

The Analytical Perspectives volume also contains sup-plemental material with several detailed tables, includingtables showing the budget by agency and account and by

unction, subunction, and program, that is available onthe Internet and as a CD-ROM in the printed document.

Historical Tables, Budget of the United States

Government, Fiscal Year 2011 provides data on budgetreceipts, outlays, surpluses or defcits, Federal debt, andFederal employment over an extended time period, gener-

ally rom 1940 or earlier to 2011 or 2015.To the extent easible, the data have been adjusted to

provide consistency with the 2011 Budget and to providecomparability over time.

Appendix, Budget of the United States

Government, Fiscal Year 2011 contains detailed in-

ormation on the various appropriations and unds thatconstitute the budget and is designed primarily or the

use o the Appropriations Committees. The Appendix con-tains more detailed fnancial inormation on individual

programs and appropriation accounts than any o theother budget documents. It includes or each agency: the

proposed text o appropriations language; budget schedules or each account; legislative proposals; explanations

o the work to be perormed and the unds needed; and

proposed general provisions applicable to the appropria-tions o entire agencies or group o agencies. Inormationis also provided on certain activities whose transactionsare not part o the budget totals.

AUTOMATED SOURCES OF

BUDGET INFORMATION

The inormation contained in these documents is available in electronic ormat rom the ollowing sources:

Internet. All budget documents, including documentsthat are released at a uture date, spreadsheets o many

o the budget tables, and a public use budget databaseare available or downloading in several ormats rom the

Internet at www.budget.gov/budget. Links to documentsand materials rom budgets o prior years are also provided

Budget CD-ROM. The CD-ROM contains all o thebudget documents in ully indexed PDF ormat along with

the sotware required or viewing the documents. TheCD-ROM has many o the budget tables in spreadsheet

ormat and also contains the materials that are includedon the separate Analytical Perspectives CD-ROM.

For more inormation on access to electronic versionso the budget documents (except CD-ROMs), call (202

512-1530 in the D.C. area or toll-ree (888) 293-6498. Topurchase the budget CD-ROM or printed documents call

(202) 512-1800.

THE BUDGET DOCUMENTS

GENERAL NOTES

1. All years reerenced to are fscal years, unless otherwise noted.

2. Detail in this document may not add to the totals due to rounding.

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON 2010

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ISBN 978-0-16-084797-4


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i

Contents o the Historical Tables

Page

Introduction:

Structure, Coverage, and Concepts......................................................................................................................................... 1

Historical Trends .................................................................................................................................................................... 5

Section Notes ........................................................................................................................................................................... 11

Section 1Overview o Federal Government Finances ............................................................................................................... 21

Table 1.1Summary o Receipts, Outlays, and Surpluses or Decits (): 17892015 ....................................................... 21

Table 1.2Summary o Receipts, Outlays, and Surpluses or Decits () as Percentages o GDP: 19302015 ................. 24

Table 1.3Summary o Receipts, Outlays, and Surpluses or Decits () in Current Dollars, Constant (FY 2005)

Dollars, and as Percentages o GDP: 19402015 .............................................................................................................. 26

Table 1.4Receipts, Outlays, and Surpluses or Decits () by Fund Group: 19342015 ................................................... 28

Section 2Composition o Federal Government Receipts ........................................................................................................... 30

Table 2.1Receipts by Source: 19342015 ............................................................................................................................ 30

Table 2.2Percentage Composition o Receipts by Source: 19342015 ............................................................................... 32

Table 2.3Receipts by Source as Percentages o GDP: 19342015 ..................................................................................... 34Table 2.4Composition o Social Insurance and Retirement Receipts and o Excise Taxes: 19402015 .......................... 36

Table 2.5Composition o Other Receipts: 19402015 ...................................................................................................... 45

Section 3Federal Government Outlays by Function................................................................................................................. 47

Table 3.1Outlays by Superunction and Function: 19402015.......................................................................................... 47

Table 3.2Outlays by Function and Subunction: 19622015 ............................................................................................. 56

Section 4Federal Government Outlays by Agency.................................................................................................................... 77

Table 4.1Outlays by Agency: 19622015 ............................................................................................................................ 77

Table 4.2Percentage Distribution o Outlays by Agency: 19622015 ................................................................................ 84

Section 5Budget Authority by Agency and by Subunction ..................................................................................................... 90

Table 5.1Budget Authority by Function and Subunction: 19762015 ............................................................................. 90

Table 5.2Budget Authority by Agency: 19762015 ............................................................................................................ 105

Table 5.3Percentage Distribution o Budget Authority by Agency: 19762015 ................................................................ 110

Table 5.4Discretionary Budget Authority by Agency: 19762015 ..................................................................................... 115Table 5.5Percentage Distribution o Discretionary Budget Authority by Agency: 19762015 ........................................ 120

Section 6Composition o Federal Government Outlays ............................................................................................................ 125

Table 6.1Composition o Outlays: 19402015 ..................................................................................................................... 125

Section 7Federal Debt ................................................................................................................................................................ 133

Table 7.1Federal Debt at the End o Year: 19402015 ....................................................................................................... 133

Table 7.2Debt Subject to Statutory Limit: 19402015 ....................................................................................................... 135

Table 7.3Statutory Limits on Federal Debt: 1940Current............................................................................................... 136

Section 8Outlays by Budget Enorcement Act Category and Budget Authority or Discretionary Programs ...................... 140

Table 8.1Outlays by Budget Enorcement Act Category: 19622015................................................................................ 140

Table 8.2Outlays by Budget Enorcement Act Category in Constant (FY 2005) Dollars: 19622015 ............................ 142

Table 8.3Percentage Distribution o Outlays by Budget Enorcement Act Category: 19622015 ................................... 144

Table 8.4Outlays by Budget Enorcement Act Category as Percentages o GDP: 19622015 ......................................... 146

Table 8.5Outlays or Mandatory and Related Programs: 19622015 .............................................................................. 148Table 8.6Outlays or Mandatory and Related Programs in Constant (FY 2005) Dollars: 19622015 ........................... 155

Table 8.7Outlays or Discretionary Programs: 19622015 ................................................................................................ 162

Table 8.8Outlays or Discretionary Programs in Constant (FY 2005) Dollars: 19622015 ............................................. 169

Table 8.9Budget Authority or Discretionary Programs: 19762015 ................................................................................ 176

Section 9Federal Government Outlays or Major Public Physical Capital, Research and Development, and

Education and Training ............................................................................................................................................................ 181

Table 9.1Total Investment Outlays or Major Public Physical Capital, Research and Development, and

Education and Training: 19622011 ................................................................................................................................. 181


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ii THE BUDGET FOR FISCAL YEAR 2011, HISTORICAL TABLES

Contents o the Historical TablesContinued

Page

Table 9.2Major Public Physical Capital Investment Outlays in Current and Constant (FY 2005) Dollars:

19402011 ........................................................................................................................................................................... 182Table 9.3Major Public Physical Capital Investment Outlays in Percentage Terms: 19402011.................................... 184

Table 9.4National Deense Outlays or Major Public Direct Physical Capital Investment: 19402011 ........................ 186

Table 9.5Nondeense Outlays or Major Public Direct Physical Capital Investment: 19402011 ................................. 188

Table 9.6Composition o Outlays or Grants or Major Public Physical Capital Investment: 19412011 ..................... 190

Table 9.7Summary o Outlays or the Conduct o Research and Development: 19492011 (in Current Dollars,

in Constant (FY 2005) Dollars, as Percentages o Total Outlays, and as Percentages o GDP) ..................................... 197

Table 9.8Composition o Outlays or the Conduct o Research and Development: 19492011 ....................................... 199

Table 9.9Composition o Outlays or the Conduct o Education and Training: 19622011 ............................................. 207

Section 10Gross Domestic Product and Implicit Outlay Defators .......................................................................................... 210

Table 10.1Gross Domestic Product and Defators Used in the Historical Tables: 19402015 ......................................... 210

Section 11Federal Government Payments or Individuals ...................................................................................................... 212

Table 11.1Summary Comparison o Outlays or Payments or Individuals: 19402015 (in Current Dollars, as

Percentages o Total Outlays, as Percentages o GDP, and in Constant (FY 2005) Dollars) ......................................... 212Table 11.2Functional Composition o Outlays or Payments or Individuals: 19402015 ............................................... 214

Table 11.3Outlays or Payments or Individuals by Category and Major Program:

19402015 ........................................................................................................................................................................... 223

Section 12Federal Grants to State and Local Governments .................................................................................................... 249

Table 12.1Summary Comparison o Total Outlays or Grants to State and Local Governments: 19402015

(in Current Dollars, in Constant (FY 2005) Dollars, as Percentages o Federal Outlays, and as Percentages

o GDP) ................................................................................................................................................................................ 249

Table 12.2Total Outlays or Grants to State and Local Governments by Function and Fund Group: 19402015 ........ 251

Table 12.3Total Outlays or Grants to State and Local Governments by Function, Agency, and

Program: 19402011 ........................................................................................................................................................... 258

Section 13Social Security and Medicare ................................................................................................................................... 317

Table 13.1Cash Income, Outgo, and Balances o the Social Security and Medicare Trust Funds: 19362015 .............. 317

Section 14Federal Sector Transactions in the National Income and Product Accounts ......................................................... 332Table 14.1Federal Transactions in the National Income and Product Accounts or Federal

Fiscal Years: 19482011 ..................................................................................................................................................... 332

Table 14.2Federal Transactions in the National Income and Product Accounts as Percentages

o GDP or Federal Fiscal Years: 19482011 ..................................................................................................................... 340

Section 15Total (Federal and State and Local) Government Finances ................................................................................... 348

Table 15.1Total Government Receipts in Absolute Amounts and as Percentages o GDP: 19482009 .......................... 348

Table 15.2Total Government Expenditures: 19482009 .................................................................................................... 350

Table 15.3Total Government Expenditures as Percentages o GDP: 19482009 ............................................................. 352

Table 15.4Total Government Expenditures by Major Category o Expenditure: 19482009 .......................................... 354

Table 15.5Total Government Expenditures by Major Category o Expenditure as

Percentages o GDP: 19482009 ........................................................................................................................................ 356

Table 15.6Total Government Surpluses or Decits () in Absolute Amounts and as Percentages

o GDP: 19482009 ............................................................................................................................................................. 358Section 16Federal Health Spending .......................................................................................................................................... 360

Table 16.1Outlays or Health Programs: 19622015 ......................................................................................................... 360

Section 17Executive Branch Civilian Full-Time Equivalent Employment ............................................................................. 361

Table 17.1Total Executive Branch Civilian Full-Time Equivalent (FTE) Employees: 19812011 ............................... 361

Table 17.2Total Executive Branch Civilian Full-Time Equivalent (FTE) Employees:

19812011 as percentage o total ...................................................................................................................................... 362


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1

INTRODUCTION

STRUCTURE, COVERAGE, AND CONCEPTS

Historical Tables provides a wide range odata on Federal Government nances. Manyo the data series begin in 1940 and includeestimates o the Presidents budget or 20102015. Additionally, Table 1.1 provides data onreceipts, outlays, and surpluses or decits or19011939 and or earlier multiyear periods.

Structure

This document is composed o 17 sections,each o which has one or more tables. Eachsection covers a common theme. Section 1, or

example, provides an overview o the budgetand o-budget totals; Section 2 providestables on receipts by source; and Section 3shows outlays by unction. When a sectioncontains several tables, the general rule is tostart with tables showing the broadest over-view data and then work down to more de-tailed tables. The purpose o these tables is topresent a broad range o historical budgetarydata in one convenient reerence source andto provide relevant comparisons likely to bemost useul. The most common comparisonsare in terms o proportions (e.g., each majorreceipt category as a percentage o total re-ceipts and o the gross domestic product).

Section notes explain the nature o the ac-tivities covered by the tables in each section.Additional descriptive inormation is also in-cluded where appropriate. Explanations aregenerally not repeated, but there are occa-sional cross-reerences to related materials.

Because o the numerous changes in theway budget data have been presented over

time, there are inevitable diculties in tryingto produce comparable data to cover manyyears. The general rule is to provide data inas meaningul and comparable a ashion aspossible. To the extent easible, the data arepresented on a basis consistent with currentbudget concepts. When a structural changeis made, insoar as possible the data are ad-justed or all years.

One signicant change made in the early1990s concerns the budgetary treatment oFederal credit programs, which was changedby the Federal Credit Reorm Act o 1990.Previously the budget recorded the cost odirect and guaranteed loans on a cash basis.Under credit reorm, the budget recordsbudget authority and outlays or the subsidycost o direct and guaranteed loans made in1992 and subsequent years. The subsidy isdened as the net estimated cash fows toand rom the Government over the lie o theloan, discounted to the present. The remain-

ing cash transactions o credit programs arerecorded as a means o nancing the decit.Because it is impossible to convert the pre-1992 loans to a credit reorm basis, the dataare on a cash basis or pre-1992 loans and ona credit reorm basis or loans made in 1992and subsequent years.

Coverage

The Federal Government has used theunied or consolidated budget concept asthe oundation or its budgetary analysisand presentation since the 1969 budget. Thebasic guidelines or the unied budget werepresented in the Report o the PresidentsCommission on Budget Concepts (October1967). The Commission recommended thebudget include all Federal scal activitiesunless there were exceptionally persuasivereasons or exclusion. Nevertheless, romthe very beginning some programs wereperceived as warranting special treatment.Indeed, the Commission itsel recommendeda biurcated presentation: a unied budget

composed o an expenditure account and aloan account. The distinction between theexpenditure account and the loan accountproved to be conusing and caused consid-erable complication in the budget or littlebenet. As a result, this distinction waseliminated starting with the 1974 budget.However, even prior to the 1974 budget, theExport-Import Bank had been excluded by


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THE BUDGET FOR FISCAL YEAR 2011, HISTORICAL TABLES2

law rom the budget totals, and other exclusionsollowed. The structure o the budget was gradu-ally revised to show the o-budget transactionsin many locations along with the on-budgettransactions, and the o-budget amounts were

added to the on-budget amounts in order toshow total Federal spending and receipts.

The Balanced Budget and Emergency DecitControl Act o 1985 (Public Law 99177) re-pealed the o-budget status o all then existingo-budget entities, but it also included a provi-sion moving the Federal old-age, survivors, anddisability insurance unds (collectively known asSocial Security) o-budget. To provide a consis-tent time series, the budget historical data showSocial Security o-budget or all years sinceits inception, and show all ormerly o-budget

entities on-budget or all years. The OmnibusBudget Reconciliation Act o 1989 (OBRA 1989)moved the Postal Service und o-budget, start-ing in 1989. Again to provide a consistent timeseries, transactions o the Postal Service undare shown o-budget beginning with its incep-tion in 1972. The transactions o its predecessor,the Post Oce Department, remain on-budget.

Though Social Security and the PostalService are now o-budget, they continue tobe Federal programs. Indeed, Social Securitycurrently accounts or about one-ourth o allFederal receipts and over one-th o all Federalspending. Hence, the budget documents includethese unds and ocus on the Federal totals thatcombine the on-budget and o-budget amounts.Various budget tables and charts show totalFederal receipts, outlays, and surpluses anddecits, and divide these totals between the por-tions that are on-budget and o-budget.

Changes in Historical Budget Authority,

Outlays, Receipts, and Decits

This years annual consultations with theCongress regarding reclassication o accountsor activities as to unction or subunction re-sulted in one reclassication o historical andongoing data:

The Broadband Technology Opportuni-

ties Program (Recovery Act) account inthe Department o Commerces National

Telecommunication and Inormation Ad-ministration was misclassied as sub-

unction 503 (Research and general edu-cation aids) in the FY 2010 Budget. This

has been corrected to show the payments

as subunction 376 (Other advancemento commerce) or the FY 2011 Budget.

However, there was one signicant correctionmade to historical receipt and outlay amounts asa result o a classication change by the BudgetScorekeeping Group to Gits and Donations re-ceived by the Federal Government. Formerly,such amounts were classied as GovernmentalReceipts. They are now classied as OsettingReceipts. As a result o the reclassication,both Governmental Receipts and Outlays arereduced by equal amounts dating back to scal

year 1984. (Outlays are reduced because oset-ting receipts are netted against gross outlaysto produce net outlays, which are normally re-erred to as outlays in budget tables.) Thereclassication has no net eect on budget sur-pluses or decits. The dollar amounts reclassi-ed range rom $48 million in 1984 to a peak o$378 million in 2006 and end with $327 millionin 2008. Amounts shown or 2009 and beyondalso refect the new classication.

A reclassication o budget authority previ-ously categorized as Bioshield under the BudgetEnorcement Act categories has been made toshow such amounts as Discretionary, which iswhere the outlays or this category are shown.The result o the reclassication is to increasediscretionary budget authority by $885 millionin 2004 and by $2,508 million in 2005. Thespecial Bioshield category is also eliminated.

Very minor adjustments have also been madeto refect corrections in agency reporting provid-ed to the Treasury Department.

Note on the Fiscal Year

The Federal scal year begins on October 1and ends on the subsequent September 30. Itis designated by the year in which it ends; orexample, scal year 2009 began on October 1,2008, and ended on September 30, 2009. Priorto scal year 1977 the Federal scal years beganon July 1 and ended on June 30. In calendar


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3THE BUDGET FOR FISCAL YEAR 2011, HISTORICAL TABLES

year 1976 the July-September period was a sep-arate accounting period (known as the transi-tion quarter or TQ) to bridge the period requiredto shit to the new scal year.

Note on Gross Domestic Product (GDP)

Prior to the Fiscal Year 2010 edition o theHistorical Tables, GDP or scal years had beenderived using quarterly gures on a Not Season-ally Adjusted (NSA) basis. Since GDP data onthis basis are no longer available, the gures orscal year GDP have been revised in this editionto use quarterly gures that are on a Season-ally Adjusted, Annual Rate (SAAR) basis. As aresult, minor changes in budget data expressedas percentages o GDP occur throughout thetables.

As a result o this years Benchmark (Compre-hensive) Revisions to the National Income andProduct Accounts (NIPA) data by the Bureau oEconomic Analysis, GDP data have been revisedback to 1930. Thus, data expressed as a percent-age o GDP have also been revised. The NIPArevisions also aect the gures shown in thetables in Sections 14 and 15 o this years editiono the Historical Tables.

Note on Proposed Reclassication o the

Pell Grant Program

The Budget includes a proposal to change thelegal status o Pell grants and, thereore, to re-classiy the Pell Grant program rom the discre-tionary category to mandatory, starting in 2010.Tables in this document that display Budget En-orcement Act (BEA) categories refect this pro-posal. As a result, discretionary and mandatorycategory totals or 2010 and beyond are not ullycomparable with corresponding totals or 2009and prior years.

Note on the Portrayal o Health Reorm

The Budget includes an allowance or pendinghealth reorm legislation, equal to the averageo the House-passed and Senate-passed healthreorm bills. The allowance is adjusted to removethe eects o provisions already included explic-itly as 2011 Budget proposals, to avoid doublecounting their eects. The averaged o-budget

receipt and outlay eects o health reorm legis-lation are shown within the Social Security trustunds. Thereore, in the Historical Tables, theseo-budget eects are distributed by agency,budget unction, program, and other categories

as appropriate. The averaged on-budget eectsare shown as aggregate outlay and receipt al-lowances and are not attributed to any specicprogram or source o receipts. Thereore, in theHistorical Tables, the on-budget outlay eectsare not distributed by agency, budget unction,or program. However, the receipt allowance iscarried in the Miscellaneous Receipts sourcecategory. The on-budget outlays are assumedto be entirely direct payments or individual orhealth purposes, or the purpose o Tables 6.1,11.1, 11.2, 11.3, and 16.1.

Concepts Relevant to the Historical Tables

Budget receipts constitute the income side othe budget; they are composed almost entirelyo taxes or other compulsory payments to theGovernment. In contrast, any income rombusiness-type activities (e.g., interest income orthe sale o electric power), and any income byGovernment accounts arising rom paymentsby other Government accounts, is oset againstoutlays, so that total budget outlays are reportednet o osetting collections. This method o ac-counting permits users to easily identiy the sizeand trends in Federal taxes and other compul-sory income, and in Federal spending nancedrom taxes, other compulsory income, or borrow-ing. The budget surplus reers to any excess obudget receipts over budget outlays, while thebudget decit reers to any excess o budgetoutlays over budget receipts.

The terms o-budget receipts, o-budgetoutlays, o-budget surpluses, and o-budgetdefcits reer to similar categories or o-bud-get activities. The sum o the on-budget and

o-budget transactions are reerred to as theconsolidated, unied, or total Federal Govern-ment transactions.

The budget is divided between two undgroups, Federal unds and trust unds. TheFederal unds group includes all receipts andoutlays not specied by law as being trust unds.All Federal unds are on-budget except or the


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Postal Service und, which is shown as o-bud-get starting in 1972. All trust unds are on-bud-get, except the two Social Security retirementand disability trust unds, which are shown o-budget or all years.

The term trust und as used in Federal budgetaccounting is requently misunderstood. In theprivate sector, trust reers to unds o one partyheld by a second party (the trustee) in a du-ciary capacity. In the Federal budget, the termtrust und means only that the law requiresthe unds be accounted or separately and usedonly or specied purposes and that the accountin which the unds are deposited is designatedas a trust und. A change in law may changethe uture receipts and the terms under whichthe unds resources are spent. The determining

actor as to whether a particular und is desig-nated as a Federal und or trust und is thedesignation specied in the law governing theund.

The largest trust unds are or retirementand social insurance (e.g., civil service and mili-tary retirement, Social Security, Medicare, andunemployment benets). They are nancedlargely by social insurance taxes and contribu-tions and payments rom the general und (themain component o Federal unds). However,there are also major trust unds or transporta-tion (highway and airport and airways) and orother programs nanced in whole or in part bybeneciary-based, dedicated taxes.

Sometimes there is conusion between budgetreceipts and osetting receipts and osettingcollections. Receipts are income that resultsrom the Governments exercise o its sovereignpower to tax, or otherwise compel payment, aspreviously noted. They are also called govern-mental receipts or budget receipts. Osetting

collections and osetting receipts result romeither o two kinds o transactions: business-likeor market-oriented activities with the publicand intragovernmental transactions, the receiptby one Government account o a payment rom

another account.

For example, the budget records the proceedsrom the sale o postage stamps, the ees chargedor admittance to recreation areas, and the pro-ceeds rom the sale o Government-owned landas osetting collections or osetting receipts.These are proprietary osetting collections orosetting receipts, coming rom the public tothe Government. Sometimes, however, pay-ments are made rom one Government agency toanother, creating intragovernmental osettingreceipts or collections. For example, the General

Services Administration receives payments romother Government agencies or the rent o ocespace. These are credited as osetting collec-tions in the Federal Buildings Fund. Osettingcollections and osetting receipts are deductedrom gross budget authority and outlays, ratherthan added to receipts. This treatment producesbudget totals or receipts, budget authority, andoutlays that represent governmental transac-tions with the public rather than market activ-ity.

When unds are dedicated, it means the re-ceipts or collections are separately identiedand used or a specied purposethey are notcommingled (in an accounting sense) with anyother money. This does not mean the money isactually kept in a separate bank account. Allmoney in the Treasury is merged or ecientcash management. However, any dedicatedunds are accounted or in such a way that thebalances are always identiable and availableor the stipulated purposes.


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5

HISTORICAL TRENDS

Because the Historical Tables publica-tion provides a large volume and wide array

o data on Federal Government nances, itis sometimes dicult to perceive the long-term patterns in various budget aggregatesand components. To assist the reader inunderstanding some o these long-termpatterns, this section provides a shortsummary o the trends in Federal decitsand surpluses, debt, receipts, outlays andemployment.

Defcits and Debt.As shown in Table 1.1,except or periods o war (when spending ordeense increased sharply), depressions, or

other economic downturns (when receiptsell precipitously), the Federal budget wasgenerally in surplus throughout most othe Nations rst 200 years. For our rst 60years as a Nation (through 1849), cumula-tive budget surpluses and decits yieldeda net surplus o $70 million. The CivilWar, along with the Spanish-American Warand the depression o the 1890s, resultedin a cumulative decit totaling just under$1 billion during the 18501900 period.Between 1901 and 1916, the budget hoveredvery close to balance every year. WorldWar I brought large decits that totaled$23 billion over the 19171919 period. Thebudget was then in surplus throughout the1920s. However, the combination o theGreat Depression ollowed by World War IIresulted in a long, unbroken string o de-cits that were historically unprecedented inmagnitude. As a result, Federal debt heldby the public mushroomed rom less than$3 billion in 1917 to $16 billion in 1930 andthen to $242 billion by 1946. In relationto the size o the economy, debt held by the

public grew rom 16 percent o GDP in 1930to 109 percent in 1946.

During much o the postwar period,this same pattern persistedlarge de-cits were incurred only in time o war (e.g.,Korea and Vietnam) or as a result o reces-sions. As shown in Table 1.2, prior to the1980s, postwar decits as a percent o GDP

reached their highest during the 197576recession at 4.2 percent in 1976. Debt held

by the public had grown to $477 billion by1976, but, because the economy had grownaster, debt as a percent o GDP had de-clined throughout the postwar period to alow o 23.9 percent in 1974, climbing backto 27.5 percent in 1976. Following veyears o decits averaging only 2.5 percento GDP between 1977 and 1981, debt heldby the public stood at 25.8 percent o GDPby 1981, less than two percentage pointshigher than its postwar low.

The traditional pattern o running large

decits only in times o war or economicdownturns was broken during much o the1980s. In 1982, large permanent tax cutswere enacted. Moreover, these were accom-panied by substantial increases in deensespending. Although reductions were madeto nondeense spending, they were not osucient size to oset the impact on thedecit. As a result, decits averaging $206billion were incurred between 1983 and1992. These unprecedented peacetime de-cits increased debt held by the public rom$789 billion in 1981 to $3.0 trillion (48.1percent o GDP) in 1992.

Ater peaking at $290 billion in 1992,decits declined each year, dropping to alevel o $22 billion in 1997. In 1998, theNation recorded its rst budget surplus($69.3 billion) since 1969. As a percent oGDP, the budget bottom line went rom adecit o 4.7 percent in 1992 to a surpluso 0.8 percent in 1998, increasing to a 2.4percent surplus in 2000. An economic slow-down began in 2001. The deterioration in

the perormance o the economy togetherwith large tax reductions, as well as addi-tional spending in response to the Septem-ber terrorist attacks, produced a drop in thesurplus rom $236 billion in 2000 to $128billion (1.3 percent o GDP) in 2001 and areturn to decit ($158 billion, 1.5 percento GDP) in 2002. These actors also con-tributed to the increase in the decit in the


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ollowing two years, reaching $413 billion (3.5percent o GDP) in 2004. Economic growth in2005 and 2006 produced a sharp increase inrevenues, helping to reduce the decit to $248billion (1.9 percent o GDP) in 2006 and even

urther to $161 billion (1.2 percent o GDP) in2007.

Debt held by the public, which had peakedat 49.3 percent o GDP in 1993, ell to 32.5percent by 2001 and increased thereater,reaching 36.9 percent by 2005. The declines inthe decit in 2006 and 2007 helped to reducedebt held by the public to 36.2 percent o GDPin 2007.

In December 2007, the economy ell intorecession. In response, tax reductions in the

orm o rebates were enacted in mid-February2008. In addition, several years o poor pri-vate-sector mortgage lending practices andother risky nancial market behaviors led toa nancial market crisis in September 2008that signicantly deepened the ongoing re-cession. Lower revenue (due to both the taxreductions and lower economic activity) andrecession-induced spending or unemploy-ment assistance and other automatic stabiliz-ers combined with a large stimulus package ourther tax reductions and program increasesas well as increased deense spending (duepartly to the surge o troops in Iraq and, subse-quently, in Aghanistan) to produce decits in2008 o $459 billion (3.2 percent o GDP) andin 2009 o $1,413 billion (9.9 percent o GDP)and an increase in debt held by the public to40.2 percent o GDP in 2008 and 53.0 percento GDP in 2009. The Government used aportion o the increased debt to acquire nan-cial assets rom the private sector as a way oameliorating the nancial market crisis andassisting the economy. These nancial assetscan be considered osets to the increase in

the debt; taking them into account, however,still shows that debt net o nancial assets in-creased to 46.7 percent o GDP by the end o2009.

Receipts.From the beginning o theRepublic until the start o the Civil War, ourNation relied on customs duties to nance theactivities o the Federal Government. During

the 19th Century, sales o public lands supple-mented customs duties. While large amountswere occasionally obtained rom the saleo lands, customs duties accounted or over90 percent o Federal receipts in most years

prior to the Civil War. Excise taxes becamean important and growing source o Federalreceipts starting in the 1860s. Estate and gittaxes were levied and collected sporadicallyrom the 1860s through World War I, althoughnever amounting to a signicant source o re-ceipts during that time. Prior to 1913, incometaxes did not exist or were inconsequential,other than or a brie time during the CivilWar period, when special tax legislation raisedthe income tax share o Federal receipts to asmuch as 13 percent in 1866. Subsequent to theenactment o income tax legislation in 1913,

these taxes grew in importance as a source oFederal receipts during the ollowing decade.By 1930, the Federal Government was relyingon income taxes or 60 percent o its receipts,while customs duties and excise taxes each ac-counted or 15 percent o the receipts total.

During the 1930s, total Federal receipts av-eraged about 5 percent o GDP. World War IIbrought a dramatic increase in receipts, withthe Federal receipts peaking at 20.9 percento GDP in 1944. The percentage declinedsomewhat ater the war and has remainedbetween 16 percent20 percent o GDP duringmost o this time. In recent years, receiptshave increased as a percent o GDProm17.5 percent in 1992 to 20.6 percent in 2000,dropping back to 16.1 percent in 2004 beoreincreasing to 18.2 percent in 2006 and 18.5percent in 2007. The eects o the recessionon the rate o growth in GDP and on receiptscollections in 2008 combined to reduce theGDP share o receipts back to the 1992 levelo 17.5 percent. The deepening recession andurther tax reductions enacted in 2009 to help

revive the economy urther reduced receiptsas a percent o GDP to 14.8, the lowest since1950. There have also been some signicantshits during the postwar period in the under-lying sources or composition o receipts.

The increase in taxes needed to support thewar eort in the 1940s saw total (corporate andindividual) income taxes rise to prominence as


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a source o Federal receipts, reaching nearly 80percent o total receipts in 1944. Ater the war,the total income tax share o receipts ell rom apostwar high o 74 percent in 1952 to an averageo 64 percent in the late 1960s. The growth in

social insurance taxes (such as Social Secu-rity and Medicare) more than oset a postwarsecular decline in excise and other non-incometax shares. The combination o substantial re-ductions in income taxes enacted in the early1980s and the continued growth in social insur-ance taxes resulted in a continued decline inthe total income tax share o receipts. By 1983the total income tax share had dropped to 54percent o receipts, and it remained in the 53to 56 percent range until the mid-1990s. Since1994, the total income tax share o receipts hasincreased, reaching 60 percent in 2000, beore

dropping back to 52 percent by 2003 and thenincreasing to 58 percent in 2006 and 60 percentin 2007. As a result o the recession and tax re-ductions enacted as part o the stimulus pack-ages in February 2008 and again in the springo 2009, the total income tax share dropped to 57percent in 2008 and dropped even urther, to 50percent in 2009.

Corporation income taxes accounted ora large part o this postwar decline in totalincome tax share, alling rom over 30 percento total Federal receipts in the early 1950s to20 percent in 1969. During the same period,pretax corporate prots ell rom about 12percent o GDP in the early 1950s to 10percent in 1968. By 1980 the corporationincome tax share o total receipts had droppedto 12.5 percent. Pretax corporate prots alsodeclined as a percent o GDP during the 1980sand, thus, the corporation income tax share ototal receipts dropped to a low o 6.2 percentin 1983. By 1996, the share had climbed backto 11.8 percent. But, by 2003, it had droppedback to 7.4 percent, well below the 1980 share,

beore climbing back to 10.1 percent in 2004and increasing urther to 14.7 percent in 2006.The December 2007 recession reduced the cor-poration income tax share o total receipts to12.1 percent in 2008 and substantially reducedtheir share to just 6.6 percent in 2009.

This postwar drop in corporation incometaxes as a share o total receipts has beenmore than oset by the growth in social in-surance taxes and retirement receipts, as bothtax rates and the percentage o the workorce

covered by these payroll taxes increased.This category o receipts increased rom only8 percent o total receipts during the mid-1940s to 38 percent by 1992, but declined to32.2 percent by 2000 beore rising to back a40.0 percent share in 2003, then alling o to34.8 percent in 2006 and 33.9 percent in 2007,beore rising to 35.7 percent in 2008. The dropin GDP in 2009 resulting rom the deepeningrecession helped raise the 2009 share to 42.3percent o total receipts.

Excise taxes have also declined in relative

importance during the postwar period, allingrom a 19 percent share o total receipts in 1950to 10 percent by 1965 and 5 percent by 1985.Excise taxes accounted or only 3 percent ototal receipts in 2006 and dropped urther to2.5 percent in 2007, due, in part, to the end othe Federal telephone excise tax on long dis-tance telephone calls. In 2008, the excise taxshare o total receipts increased slightly to 2.7percent and increased urther to 3 percent in2009, but this was due to the rapid decline inincome tax receipts rather than any substan-tial growth in excise tax receipts.

Outlays and Executive Branch Civilian Em-

ployment.Throughout most o the Nationshistory prior to the 1930s, the bulk o Federalspending went towards national deense, vet-erans benets and interest on the public debt.In 1929, or example, 71 percent o Federaloutlays were in these three categories. The1930s began with Federal outlays equalingjust 3.4 percent o GDP. As shown in Table 1.2,the eorts to ght the Great Depression withpublic works and other nondeense Federal

spending, when combined with the depressedGDP levels, caused outlays and their share oGDP to increase steadily during most o thatdecade, with outlays rising to 10.3 percent oGDP by 1939 and to 12.0 percent by 1941 onthe eve o U.S. involvement in World War II.

Deense spending during World War II re-sulted in outlays as a percent o GDP rising


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sharply, to a peak o 43.6 percent in both1943 and 1944. The end o the war broughttotal spending down to 14.3 percent o GDPby 1949. The Korean War increased spendingto 20.4 percent o GDP by 1953, but outlays

then dropped as a percent o GDP and stayedbelow 19 percent until U.S. involvement in theVietnam War escalated sharply in the middle1960s and remained high into the early 1970s.

From 1967 through 1972, Federal outlaysaveraged 19.6 percent o GDP, with a peak oc-curring in 1968 at 20.5 percent o GDP. Thedecline in deense spending as a percent oGDP that began in 1973, as the withdrawal oU.S. orces rom Vietnam was nearing comple-tion, was more than oset by increased spend-ing on human resources programs during the

1970sdue to the maturation o the SocialSecurity program and increases in educationand training, general and Federal employeeretirement and other income support pro-grams, such as ood stamps and (due largelyto recessions) unemployment assistance, aswell as a takeo in spending on the recent-ly enacted Great Society programs (such asMedicare and Medicaid), so that total spend-ing increased as a percent o GDP, averaging20.1 percent during the 1970s (also refect-ing, in part, the substantial increase in grantsto State and local governments during the1970s). Since receipts were averaging only17.9 percent o GDP during that decade, theresult was chronic decits averaging over 2.2percent o GDP (contributing to this was therecession o 197576, which saw decits in-crease to 4.0 percent in 1976).

The 1980s began with substantial momen-tum in the growth o Federal nondeensespending in the areas o human resources,grants to State and local governments, and,as a result o the decits incurred throughout

the 1970s, interest on the public debt. In theearly 1980s, a combination o substantially in-creased deense spending, continued growth inhuman resource spending, large tax cuts, anda deep recession caused the decits to soar,which, in turn, sharply increased spending orinterest on the public debt. Federal spend-ing climbed to an average o 22.8 percent oGDP during 19811985. An end to the rapid

deense buildup and a partial reversal o thetax cuts, along with a strong economy duringthe second hal o the decade, brought Federalspending back down to 21.2 percent o GDPby 1989.

In the early 1990s, another recession, inthe ace o continued rapid growth in Federalhealth care costs and additional spendingresulting rom the savings and loan crisis,caused the outlay share o GDP to averageover 22.2 percent in 1991 and 1992. Duringthe decade ollowing 1992, this upward trendwas reversed, with outlays as a percent oGDP declining gradually but steadily, allingto a low o 18.2 percent in both 2000 and 2001.Since then, the outlay share o GDP has risen,to 19.1 percent in 2002 and 19.5 percent in

2003, due, in part, to the increase in deenseand homeland security spending in responseto the September 11, 2001, attacks, and inpart to the weakness o GDP as a result othe 2001 recession. The outlay share o GDPincreased urther, reaching 19.9 percent in2005 and 20.1 percent in 2006, due, in part,to increased spending on the wars in Iraq andAghanistan, as well as urther increases inresponse to the devastating hurricanes thatstruck States along the Gul Coast in latesummer 2005. However, by 2007, outlays haddropped back slightly to 19.7 percent o GDP,only to shoot back up signicantly in 2008, to20.7 percent o GDP, as a result o both therecession that began in December 2007 andspending associated with the rst stages oa Federal eort to restore nancial marketsto ull unctionality. The deepening recessionin the rst part o 2009 and additional eortsto ght the recession with a large package oprogram increases and additional tax reduc-tions combined with a drop in the level o GDPto increase outlays as a percent o GDP to 24.7percent, the highest share since World War II.

Despite the growth in total Federal spend-ing as a percent o GDP in recent decades,Executive Branch (ull-time equivalent) civil-ian employment, as shown in Table 17.1, hasremained roughly constant, ranging rom 1.7to 2.2 million civilian employees (excludingthe Postal Service) since 1981. However, thecomposition o employment has shited signi-


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cantly between deense and civilian agenciesduring the postwar period, especially sincethe mid-1980s. In 1986, or example, the 2.1million total or civilian employees was splitequally between deense and the civilian

agencies, with each accounting or 1 millionemployees. During the 1990s and up throughthe current decade there has been a shit awayrom deense to civilian agency employment.In recent years, civilian agency employmenthas been nearly twice that o the Depart-ment o Deense, accounting or 1.2 milliono the 1.9 million total. Nevertheless, therehas been a gradual decline in total ExecutiveBranch civilian employment during the pasttwo decades, alling rom the 1992 level o 2.2million to 1.9 million by 2008 and increasingslightly to 2.0 million in 2009.

Although total spending has increasedsubstantially as a percent o GDP since the1950s, the growth in the various componentso spending has not been even and, thus, thecomposition o spending has changed signi-cantly during the same period.

Outlays or discretionary programs (whoseunding levels are determined by annual ap-propriations bills) totaled 12.7 percent o GDPin 1962, with nearly three-ourths going todeense. Discretionary spending or deenseprograms increased during the Vietnam Warbuildup in the late 1960s, causing total dis-cretionary outlays to rise to 13.6 percent oGDP by 1968, ater which a gradual declinebegan. By the middle 1970s, this category haddropped to 10 percent o GDP, where it hovereduntil the late 1980s, when the deense buildupthat started early in that decade came to anend. Discretionary spending, as a percent oGDP, ell even more substantially over the1990s, rom 9.0 percent in 1991 to 6.2 percentin 1999. Since then, discretionary spending

has increased. Much o this growth occurredin 2002 and 2003, in response to the 9/11 ter-rorist attacks and the initiation o the warsin Aghanistan and Iraq. Additional outlaysin response to the Gul Coast hurricanes inSeptember 2005 brought the discretionaryoutlay share o GDP to 7.8 percent in 2005.This percentage dropped over the next twoyears to 7.5 percent by 2007. In 2008, outlays

or discretionary programs increased as a per-centage o GDP to 7.9 percent, largely due toa corresponding increase in deense spending.The recession that began in December 2007and caused GDP to drop in 2008 and 2009, in

conjunction with additional program spend-ing, increased discretionary spending to 8.7percent o GDP in 2009. While total discre-tionary spending as a percent o GDP has gen-erally ollowed a downward path over the past25 years, its major componentsdeense andnondeensehave contrasting histories.

As shown in Table 8.4, discretionary deensespending was at 9.3 percent o GDP in 1962.By 1965, spending in this category had de-clined to 7.4 percent o GDP. It then increasedas a result o the Vietnam War, peaking at

9.5 percent o GDP in 1968, returning to the1965 level by 1971. This decline continuedthroughout the 1970s, hitting a low point inthat decade o 4.7 percent o GDP in 1978 and1979.

The deense buildup starting in the early1980s boosted its percentage o GDP back to6.2 percent by 1986, ater which it again begana gradual decline throughout the rest o thatdecade. By 2000, deense spending stood at 3.0percent o GDP, refecting the end o the ColdWar and the above-average economic growthduring much o the 1990s. Spending on theIraq and Aghanistan wars has reversed thisdecline, with deense spending growing rom3.0 percent o GDP in 2001 to 4.0 percent in2005, 4.2 percent in 2008 and (due in part tothe drop in GDP) to 4.6% in 2009.

Nondeense discretionary spending as apercent o GDP has ollowed a much dierentpath. In 1962, it stood at 3.4 percent o GDP.During the next ew years it quickly increased,reaching 4.3 percent o GDP by 1967. It dropped

slightly ater that year, but still averaged about4.0 percent o GDP until 1975, when it surgedto 4.5 percent o GDP due to the recession andpartly due to growth in spending on energy, theenvironment, and housing and other incomesupport programs. Much o this growth was inthe orm o Federal grants to State and localgovernments. Additional spending arose romthe creation o various antirecession grants at


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zational distinctions. Classiying each activitysolely in the unction dening its most importantpurposeeven though many activities servemore than one purposepermits adding thebudget authority and outlays o each unction to

obtain the budget totals. For example, Federalspending or Medicaid constitutes a health careprogram, but it also constitutes a orm o incomesecurity benets. However, the spending cannotbe counted in both unctions; since the mainpurpose o Medicaid is to nance the health careo the beneciaries, this program is classied inthe health unction. Section 3 provides dataon budget outlays by unction, while Section 5provides comparable data on budget authority.

Notes on Section 4 (Federal Government

Outlays by Agency)

Section 4 displays Federal Government out-lays (on- and o-budget) by agency. Table 4.1shows the dollar amounts o such outlays, andTable 4.2 shows the percentage distribu tion.The outlays by agency are based on the agencystructure currently in eect. For example, theDepartment o Homeland Security was estab-lished by legislation enacted in 2002. However,these data show spending by the Departmento Homeland Security in previous years thatconsists o spending attributable to predecessoragencies in earlier years, but now attributableto the Department o Homeland Security.

Notes on Section 5 (Budget Authority by

Agency and by Subunction

Section 5 provides data on budget authority(BA). BA is the authority provided by law oragencies to obligate the Government to spend.Table 5.1 shows BA by unction and subunction,starting with 1976. Table 5.2 provides the sameinormation by agency, and Table 5.3 provides apercentage distribution o BA by agency. Tables

5.4 and 5.5 provide the same displays as Tables5.2 and 5.3, but or discretionary budget author-ity rather than total budget authority. (Discre-tionary reers to the Budget Enorcement Actcategory that comprises programs subject to theannual appropriations process.)

The data in these tables were compiledusing the same methods used or the histori-

cal tables or receipts and outlays (e.g., to theextent easible, changes in classication are re-fected retroactively so the data show the samestream o transactions in the same location orall years). However, BA is heterogeneous in

nature, varying in type rom one program toanother. As a result, it is not additiveeitheracross programs or agencies or a year or, inmany cases, or an agency or program across aseries o yearsin the same sense that budgetreceipts and budget outlays are additive. Theollowing are examples o dierent kinds o BAand the manner in which BA results in outlays:

BA and outlays or each year may be ex-

actly the same (e.g., interest on the publicdebt).

For each year, the Congress may appro-priate a large quantity o BA that will be

spent over a subsequent period o years(e.g., many deense procurement con-

tracts and major construction programs).

Some BA (e.g., the salaries and expenses

o an operating agency) is made avail-able only or a year and any portion not

obligated during that year lapses (i.e., itceases to be available to be obligated).

Revolving unds may operate spendingprograms indenitely with no new inu-

sion o BA, other than the authority tospend osetting collections.

BA may be enacted with the expectation

it is unlikely ever to be used (e.g., stand-by borrowing authority).

As a result o the Budget EnorcementAct o 1990, the measurement o BA

changed in most special and trust undswith legislatively imposed limitations or

benet ormulas that constrain the useo BA. Where previously budget author-ity was the total income to the und, BA

in these unds or 1990 and subsequentyears is now an estimate o the obliga-

tions to be incurred during the scal yearor benet payments, administration, and

other expenses o the und. In some, butnot all, cases it was possible to adjust BA


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gures or these unds or years prior to1990 to conorm to the current concepts.

All income to a und (e.g., certain revolv-

ing, special, and trust unds not subject

to limitation or benet ormula) may bepermanently appropriated as BA; as longas the und has adequate resources, thereis no urther relationship between the BA

and outlays.

Although major changes in the way BAis measured or credit programs (begin-

ning in 1992) result rom the Budget En-orcement Act, these tables could not be

reconstructed to show revised BA guresor 1991 and prior years on the new basis.(This distinction between pre-1992 credit

transactions and later ones also existsor outlays, which otherwise do not suer

rom dierences in type.)

In its earliest years, the Federal Financ-ing Bank (FFB) was conducted as a re-volving und, making direct loans to the

public or purchasing loan assets rom oth-er unds or accounts. Each new loan by

the FFB required new BA. In many cas-es, i the same loan were made by the ac-

count being serviced by the FFB, the loancould be nanced rom osetting collec-tions and no new BA would be recorded.

Under terms o the 1985 legislation mov-ing the FFB on-budget, the FFB ceased to

make direct loans to the public. Instead,it makes loans to the accounts it services,

and these accounts, in turn, make theloans to the public. Such loans could bemade rom new BA or other obligational

authority available to the parent account.These tables have not been reconstructed

to shit BA previously scored in the FFBto the parent accounts, because there is

no technical way to recongure the data.

Despite these qualications, there is a desireor historical data on BA, and this section hasbeen developed to meet that desire. Budgetauthority data are also provided by unctionin Table 8.9 or various discretionary programgroupings.

Notes on Section 6 (Composition o Federal

Government Outlays)

The composition categories in this sectiondivide total outlays (including Social Security)

into national deense and nondeense compo-nents, and then disaggregate the nondeensespending into several parts:

Payments for individuals: These are Fed-eral Government spending programs de-

signed to transer income (in cash or inkind) to individuals or amilies. To the

extent easible, this category does notinclude reimbursements or current ser-

vices rendered to the Government (e.g.,salaries and interest). The paymentsmay be in the orm o cash paid direct-

ly to individuals or they may take theorm o the provision o services or the

payment o bills or activities largely -nanced rom personal income. They in-

clude outlays or the provision o medicalcare (in veterans hospitals, or example)and or the payment o medical bills (e.g.,

Medicare). They also include subsidies toreduce the cost o housing below market

rates, and ood and nutrition assistance(such as SNAPormerly ood stamps).

The data base, while not precise, providesa reasonable perspective o the size andcomposition o income support transers

in any particular year and trends overtime. Section 11 disaggregates the com-

ponents o this category. The data in Sec-tion 6 show that a signicant amount o

payments or individuals takes the ormo grants to State and local governmentsto nance benets or the ultimate re-

cipients. These grants include Medicaid,some ood and nutrition assistance, and

a signicant portion o the housing as-sistance payments. Sections 11 and 12

provide a more detailed disaggregation othis spending.

All other grants to State and local govern-

ments: This category consists o the Fed-

eral nondeense grants to State and localgovernments other than grants dened

as payments or individuals. Section 12disaggregates this spending.


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Net interest: Most spending or net inter-est is paid to the public as interest on the

Federal debt. As shown in Table 3.2, netinterest includes, as an oset, signicant

amounts o interest income. Spending in

this category is equal to net outlays inthe budget unction o the same name.

All other: This category consists o all re-

maining Federal spending and osettingreceipts except or those included in the

unctional category undistributed oset-ting receipts. It includes most Federal

loan activities and most Federal spend-ing or oreign assistance, arm price

supports, medical and other scienticresearch, and, in general, Federal directprogram operations.

Undistributed offsetting receipts: These

are osetting receipts that are not o-set against any specic agency or pro-

grammatic unction. They are classiedas unction 950 in the unctional tables.Additional details on their composition

can be ound at the end o Table 3.2.

Table 6.1 shows these outlays in current andconstant dollars, the percentage distribution ocurrent dollar outlays, and the current dollaroutlays as percentages o GDP. The term con-stant dollars means the amounts o money thatwould have had to be spent in each year i, onaverage, the unit cost o everything purchasedwithin that category each year (including pur-chases nanced by income transers, interest,etc.) were the same as in the base year (FiscalYear 2005). The adjustments to constant dollarsare made by applying a series o chain-weightedprice indexes to the current dollar data base.The composite total outlays defator is used todefate current dollar receipts to produce theconstant dollar receipts in Table 1.3. The sep-

arate composite defators used or the variousoutlay categories are shown in Table 10.1.

Notes on Section 7 (Federal Debt)

This section provides inormation aboutFederal debt. Table 7.1 contains data on grossFederal debt and its major components in termso both the amount o debt outstanding at the

end o each year and that amount as a percent-age o scal year GDP.

Gross Federal debt is composed both o Federaldebt held (owned) by the public and Federal debt

held by Federal Government accounts, which ismostly held by trust unds. Federal debt heldby the public consists o all Federal debt heldoutside the Federal Government accounts. Forexample, it includes debt held by individuals,private banks and insurance companies, theFederal Reserve Banks, and oreign centralbanks. The sale (or repayment) o Federal debtto the public is the principal means o nanc-ing a Federal budget decit (or disposing o aFederal budget surplus).

The Federal Government accounts holding

the largest amount o Federal debt securitiesare the Social Security, civil service retirement,military retirement, and Medicare trust unds.However, amounts are also held by some otherGovernment accounts.

Table 7.1 divides debt held by the publicbetween the amount held by the Federal ReserveBanks and the remainder. The Fed eral ReserveSystem is the central bank or the Nation. Theirholdings o Federal debt are shown separatelybecause they do not have the same impact onprivate credit markets as does other debt heldby the public. They accumulate Federal debtas a result o their role as the countrys centralbank, and the size o these holdings has a majorimpact on the Nations money supply. Sincethe Federal budget does not orecast FederalReserve monetary policy, it does not projectuture changes in the amounts o Federal debtthat will be held by the Federal Reserve Banks.Hence, the split o debt held by the public intothat portion held by the Federal Reserve Banksand the remainder is provided only or pastyears. Table 2.5 shows deposits o earnings by

the Federal Reserve System. Most interest paidby Treasury on debt held by the Federal ReserveBanks is returned to the Treasury as deposits oearnings, which are recorded as budget receipts.

As a result o a conceptual revision in thequantication o Federal debt, the data on debtheld by the public and gross Federal debtbutonly a small part o debt held by Government


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accountswere revised back to 1956 in the1990 budget. The total revision was relativelysmalla change o less than one percent o therecorded value o the debtbut the revised basisis more consistent with the quantication o in-

terest outlays, and provides a more meaningulmeasure o Federal debt. The change convertedmost debt held by the public rom the par valueto the sales price plus amortized discount.

Most debt held by Government accounts isissued at par, and securities issued at a premiumor discount were ormerly recorded at par. Thatportion o debt held by Government accountsthat was not revised back to 1956 in the 1990budget was rst recorded with an adjustmentor any initial discount starting with debt issuedin 1989. Zero-coupon bonds, however, are re-

corded at estimated market or redemption price.

Table 7.2 shows the end-o-year amounts oFederal debt subject to the general statutorylimitation. It is recorded at par value (exceptor savings bonds) through 1988, but by law thebasis was changed, in part, to accrual value orlater years. Beore World War I, each debt issueby the Government required specic authori-zation by the Congress. Starting in 1917, thenature o this limitation was modied in severalsteps until it developed into a limit on the totalamount o Federal debt outstanding. The Trea-sury is ree to borrow whatever amounts areneeded up to the debt limit, which is changedrom time to time to meet new requirements.Table 7.3 shows the ceiling at each point in timesince 1940. It provides the specic legal cita-tion, a short description o the change, and theamount o the limit specied by each Act. Most,but not all, o gross Federal debt is subject to thestatutory limit.

Notes on Section 8 (Outlays by Budget

Enorcement Act Category and Budget Au-

thority or Discretionary Programs)

Section 8 is composed o nine tables, eight owhich present outlays by the major categoriesused under the Budget Enorcement Act (BEA)and under previous budget agreements betweenCongress and previous Administrations. Thenal table presents discretionary budget author-ity. (Discretionary budget authority is shown on

an agency basis in Section 5, Table 5.4 and Table5.5.) Table 8.1 shows Federal outlays withineach o the categories and subcategories. Theprincipal categories are outlays or mandatoryand related programs and outlays or discretion-

ary programs. Mandatory and related programsinclude direct spending and osetting receiptswhose budget authority is determined by lawother than appropriations acts. These includeappropriated entitlements and SNAP (ormer-ly the ood stamp program), which receive proorma appropriations. Discretionary programsare those whose budgetary resources (otherthan entitlement authority) are determined byannual appropriations acts. The table showstwo major categories o discretionary programs:National Deense (Function 050) and Nonde-ense (all other discretionary programs). Table

8.2 has the same structure, but shows the datain constant (FY 2005) dollars. Table 8.3 showsthe percentage distribution o outlays by BEAcategory and Table 8.4 shows outlays by BEAcategory as a percentage o GDP.

Tables 8.1 through 8.4 include a categorycalled Means-Tested Entitlements. These pro-grams include entitlement programs that limitbenets or payments based on the beneciarysincome and/or assets. Also included are pay-ments rom reundable tax credits that arephased out at certain income (generally, Ad-justed Gross Income) levels. The programscurrently categorized as Means-Tested Entitle-ments are:

Funds or Strengthening Markets, In-

come, and Supply (section 32) Special milk program SNAP (ormerly the Food Stamp Program)

Child Nutrition Programs Nutrition assistance or Puerto Rico

The Pell Grants Program, proposed to beconverted to an entitlement

Grants to States or Medicaid Childrens Health Insurance Program Child Enrollment Contingency Fund

Payments to States or Child Support En-orcement and Family Support Programs

Temporary Assistance or Needy Families (TANF) Contingency Fund

Payments to States or Foster Care andAdoption Assistance


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Table 12.3 provides data on grants at theaccount or program level, with an identi-cation o the unction, agency, and und groupo the payment.

Notes on Section 13 (Social Security andMedicare)

Over the past several decades the SocialSecurity programs (the Federal old-age andsurvivors insurance (OASI) and the Federaldisability insurance (DI) trust unds) andthe Medicare programs (the Federal hospitalinsurance (HI) and the Federal supplemen-tary medical insurance (SMI) trust unds)have grown to be among the largest parts othe Federal budget. Because o the size, therates o growth, and the specialized nancing

o these programs, policy analysts requentlywish to identiy these activities separatelyrom all other Federal taxes and spending. Asdiscussed in the introductory notes, the twoSocial Security unds are o-budget, while theMedicare unds are on-budget. As Table 13.1shows, the rst o these unds (OASI) beganin 1937. The table shows the annual transac-tions o that und and o the other unds begin-ning with their points o origin.

The table provides detailed inormationabout Social Security and Medicare by und.It shows total cash income (including oset-ting receipts, but excluding any osettingcollections, which are oset within the expen-diture accounts) by und, separately identiy-ing social insurance taxes and contributions,intragovernmental income, and proprietaryreceipts rom the public. Virtually all o theproprietary receipts rom the public, espe-cially those or the supplementary medicalinsurance trust und, are Medicare insur-ance premiums. The table shows the income,outgo, and surplus or decit o each und or

each year, and also shows the balances o theunds available or uture requirements. Mosto these und balances are invested in publicdebt securities and constitute a signicantportion o the debt held by Government ac-counts (see Table 7.1).

The SMI und, which was established in1967, is nanced primarily by payments romFederal unds and secondarily by medical in-surance premiums (proprietary receipts romthe public). The other three trust unds are

nanced primarily by dedicated social insur-ance taxes. The law establishing the rate andbase o these taxes allocates the tax receiptsamong the three unds.

The table shows signicant transers byOASI and DI to the railroad retirement SocialSecurity equivalent account. These transersare equal to the additional amounts o moneySocial Security would have had to pay, lessadditional receipts it would have collected, ithe rail labor orce had been included directlyunder Social Security since the inception o

the Social Security program.

In 1983, when the OASI und ran short omoney, Congress passed legislation that (a)provided or a one-time acceleration o mili-tary service credit payments to these trustunds, (b) provided or a Federal und paymentto OASDI or the estimated value o checksissued in prior years and charged to the trustunds but never cashed, (c) required thatthe Treasury make payments to OASDHI onthe rst day o the month or the estimatedamounts o their social insurance taxes tobe collected over the course o each month(thereby increasing each aected trust undsbalances at the beginning o the month), and(d) subjected some Social Security benets toFederal income or other taxes and providedor payments by Federal unds to Social Se-curity o amounts equal to these additionaltaxes. Additionally, in 1983 the OASI undborrowed rom the DI and HI unds (the tablesshow the amounts o such borrowing and re-payments o borrowing). The large intragov-ernmental collections by OASDHI in 1983 are

a result o the transactions described under(a) and (b) above. Also starting in 1983, OASIbegan paying interest to DI and HI to reim-burse them or the balances OASI borrowedrom them; OASDHI paid interest to Treasuryto compensate it or the balances transerredto these unds on the rst day o each month.The legal requirement or Treasury to makepayments on the rst day o the month, and


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the associated interest payment, ended in1985 or HI and in 1991 or OASI and DI.

Notes on Section 14 (Federal Sector

Transactions in the National Income and

Product Accounts)

The principal system used in the UnitedStates or measuring total economic activityis the system o national income and productaccounts (NIPA), which provide calculations othe GDP and related data series. These dataare produced by the Bureau o Economic Anal-ysis (BEA) o the Department o Commerce.As part o this work, the BEA sta analyze thebudget data base and estimate transactionsconsistent with this measurement system.The NIPA data are normally produced or cal-

endar years and quarters. Section 14 providesFederal Sector NIPA data on a scal yearbasis. The main body o the table shows thecomponents o Current Receipts and Expendi-tures. An addendum shows Total Receipts andExpenditures starting in scal year 1960.

Notes on Section 15 (Total (Federal and

State and Local) Government Finances)

Section 15 provides a perspective on the sizeand composition o total Government (Federal,State, and local) receipts and spending. Boththe Bureau o the Census and the Bureau o Eco-nomic Analysis in the Commerce Departmentprovide inormation (in the national incomeand product accounts (NIPA) data) on incomeand spending or all levels o government in theUnited States. The tables in this section includethe NIPA State and local transactions with theFederal Government (deducting the amount ooverlap due to Federal grants to State and localgovernments) to measure total Government re-ceipts and spending on a scal year basis. TheNIPA State and local government receipts and

expenditures have been adjusted to be morecomparable to the Federal unied budget re-ceipts and outlays by using State and local gov-ernment Total Expenditures, by including NIPACapital Receipts rom Estate and Git taxes, and

by displaying State and local interest receiptsas an oset to State and local interest expendi-tures.

Notes on Section 16 (Federal Health

Spending)

Section 16 consists o Table 16.1, TotalOutlays or Health Programs. This table showsa broad denition o total Federal health spend-ing by type o health program, including deenseand veterans health pro grams, Medicare, Med-icaid, Federal employees health benets andother health spending. It also shows Federalhealth spending as percentages o total outlaysand o GDP.

Notes on Section 17 (Executive Branch

Civilian Employment)

Section 17 provides an overview o the sizeand scope o the Executive Branch Civilianwork orce. Federal employment in the Execu-tive Branch is controlled on the basis o Full-Time Equivalent (FTE) employment, whichis the measure o the total number o regular(non-overtime) hours worked by an employeedivided by the number o compensable hoursapplicable to each scal year. A typical FTEworkyear is equal to 2,087 hours. For example,one ull-time employee counts as one FTE, andtwo employees who work hal-time count asone FTE. FTE data have been collected orExecutive Branch agencies since 1981.

The tables included in this section illustratethe size o the Executive Branch Civilian workorce utilizing the FTE measures. Table 17.1shows FTEs or the Executive Branch and se-lected agencies or 1981 and subsequent years;Table 17.2 shows these FTEs as a percentage ototal Executive Branch FTEs.

Tables showing end-strength employmentare no longer included in the Historical Tables.However, these data are now available rom theOce o Personnel Managements web site at:http://www.opm.gov/eddata/HistoricalTa-

bles/index.asp.
http://www.opm.gov/feddata/HistoricalTables/index.asphttp://www.opm.gov/feddata/HistoricalTables/index.asphttp://www.opm.gov/feddata/HistoricalTables/index.asphttp://www.opm.gov/feddata/HistoricalTables/index.asp


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Table 1.1SUMMARY OF RECEIPTS, OUTLAYS, AND SURPLUSES OR DEFICITS (): 17892015

(in millions of dollars)

Year

Total On-Budget Off-Budget

Receipts OutlaysSurplus orDeficit ()

Receipts OutlaysSurplus orDeficit ()

Receipts OutlaysSurplus oDeficit ()

17891849 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 1,160 1,090 70 1,160 1,090 70 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .18501900 ..................................................................... 14,462 15,453 991 14,462 15,453 991 .................. .................. ................

1901 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 588 525 63 588 525 63 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .1902 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 562 485 77 562 485 77 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .1903 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 562 517 45 562 517 45 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .1904 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 541 584 43 541 584 43 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .

1905 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 544 567 23 544 567 23 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .1906 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 595 570 25 595 570 25 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .1907 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 666 579 87 666 579 87 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .1908 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 602 659 57 602 659 57 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .1909 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 604 694 89 604 694 89 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .

1910 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 676 694 18 676 694 18 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .1911 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 702 691 11 702 691 11 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .1912 .. ... .. .. .. ... .. .. .. ... .. .. .. ... .. .. .. ... .. .. ... .. .. .. ... .. .. .. ... .. .. .. ... .. .. 693 690 3 693 690 3 .. .. .. .. ... .. .. ... . .. ... .. .. ... .. .. . . .. ... .. .. .. ... .1913 .. ... .. .. .. ... .. .. .. ... .. .. .. ... .. .. .. ... .. .. ... .. .. .. ... .. .. .. ... .. .. .. ... .. .. 714 715 * 714 715 * .. .. .. ... .. .. .. ... . ... .. .. ... .. .. ... . ... .. .. .. ... .. .1914 .. ... .. .. .. ... .. .. .. ... .. .. .. ... .. .. .. ... .. .. ... .. .. .. ... .. .. .. ... .. .. .. ... .. .. 725 726 * 725 726 * .. .. .. ... .. .. .. ... . ... .. .. ... .. .. ... . ... .. .. .. ... .. .

1915 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 683 746 63 683 746 63 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .1916 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 761 713 48 761 713 48 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .1917 ............................................................................... 1,101 1,954 853 1,101 1,954 853 .................. .................. ................1918 ............................................................................... 3,645 12,677 9,032 3,645 12,677 9,032 .................. .................. ................1919 ............................................................................... 5,130 18,493 13,363 5,130 18,493 13,363 .................. .................. ................

1920 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 6,649 6,358 291 6,649 6,358 291 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .1921 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5,571 5,062 509 5,571 5,062 509 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .1922 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 4,026 3,289 736 4,026 3,289 736 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .1923 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 3,853 3,140 713 3,853 3,140 713 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .1924 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 3,871 2,908 963 3,871 2,908 963 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .

1925 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 3,641 2,924 717 3,641 2,924 717 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .1926 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 3,795 2,930 865 3,795 2,930 865 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .1927 ............................................................................... 4,013 2,857 1,155 4,013 2,857 1,155 .................. .................. ................

1928 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 3,900 2,961 939 3,900 2,961 939 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .1929 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 3,862 3,127 734 3,862 3,127 734 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .

1930 ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 4,058 3,320 738 4,058 3,320 738 ... .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .1931 ............................................................................... 3,116 3,577 462 3,116 3,577 462 .................. .................. ................1932 ............................................................................... 1,924 4,659 2,735 1,924 4,659 2,735 .................. .................. ................1933 ............................................................................... 1,997 4,598 2,602 1,997 4,598 2,602 .................. .................. ................1934 ............................................................................... 2,955 6,541 3,586 2,955 6,541 3,586 .................. .................. ................

1935 ............................................................................... 3,609 6,412 2,803 3,609 6,412 2,803 .................. .................. ................1936 ............................................................................... 3,923 8,228 4,304 3,923 8,228 4,304 .................. .................. ................1937 ............................................................................... 5,387 7,580 2,193 5,122 7,582 2,

historical tables - budget of the u. s. government

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