[Budget of the U.S. Government]
[VI. Investing in the Common Good: The Major Functions of the Federal Government]
[11. Overview]
[From the U.S. Government Publishing Office, www.gpo.gov]
VI. INVESTING IN THE COMMON
GOOD: THE MAJOR FUNCTIONS
OF THE FEDERAL GOVERNMENT
[[Page 131]]
11. OVERVIEW
The President's determination to balance the budget--a determination
that Congress shares--will continue to place a spotlight on every
Federal agency and program, forcing each to justify its existence. As
part of these efforts, the President will continue his practice of the
past four years and work with Congress to eliminate or scale back
unnecessary and lower-priority programs.
Balancing the budget goes hand-in-hand with another of the
President's major efforts--improving Government's performance. In an era
of limited resources, the President wants to make sure that the programs
the Government funds do, in fact, accomplish the goals set out for them.
Led by Vice President Gore's National Performance Review (NPR), the
Administration has made real progress in creating a Government that, in
the words of the NPR, ``works better and costs less.'' We have
eliminated layers of bureaucracy, cut paperwork burdens, scrapped
thousands of pages of regulations and, most important, improved service
to Government's customers--the American people.
These efforts will continue. Federal departments and agencies are
implementing the landmark 1993 Government Performance and Results Act,
which will hold them more accountable for what their programs achieve.
The Administration also will continue to look for ways to provide better
service. (For a detailed discussion of the Administration's effort to
improve performance, see Section IV.)
All too often, however, the focus of political debate revolves almost
exclusively around proposals for incremental change: How much more does
the President want to spend on program X? How much less on program Y?
How do his proposals compare to what Congress proposes to do?
Such proposals capture only a portion of what the Federal Government
does from year to year. The base of Federal activity--from Social
Security to defense to interest on the Federal debt--does not change
much, if at all. Nor does the base of activity include just the
estimated $1.7 trillion that the Federal Government will spend in 1998.
The Government provides hundreds of billions of dollars in benefits
through the tax code, and it seeks to accomplish other goals through
regulation.
If we want to continue improving performance, to ensure that
taxpayers get the high-quality Government they deserve, we have to
understand the full range of Federal Government activities. This section
provides a broad overview, categorizing the activities according to
their budget ``function.''
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Table 11-1. FEDERAL RESOURCES BY FUNCTION
(In billions of dollars)
----------------------------------------------------------------------------------------------------------------
Estimate
Function 1996 -----------------------------------------------------------
Actual 1997 1998 1999 2000 2001 2002
----------------------------------------------------------------------------------------------------------------
NATIONAL DEFENSE:
Spending:
Discretionary Budget Authority........ 265.0 263.1 266.0 269.8 275.5 282.0 289.8
Mandatory Outlays:
Existing law........................ -0.2 -0.8 -0.7 -0.7 -0.5 -0.5 -0.5
Proposed legislation................ ........ ........ ........ ........ ........ ........ -0.2
Credit Activity:
Guaranteed loans...................... 0.3 * 0.2 0.5 0.8 0.8 0.8
Tax Expenditures:
Existing law.......................... 2.1 2.1 2.1 2.1 2.1 2.2 2.2
---------------------------------------------------------------------
INTERNATIONAL AFFAIRS:
Spending:
Discretionary Budget Authority........ 18.1 18.1 23.0 20.1 19.1 18.8 18.8
Mandatory Outlays:
Existing law........................ -4.8 -4.7 -4.4 -4.0 -3.8 -3.7 -3.5
Proposed legislation................ ........ ........ * ........ ........ ........ ........
Credit Activity:
Direct loan disbursements............. 1.7 2.2 1.9 2.2 2.2 2.0 2.0
Guaranteed loans...................... 8.4 12.7 12.1 13.1 13.7 13.7 14.0
Tax Expenditures:
Existing law.......................... 6.5 7.0 7.6 8.2 8.8 9.4 10.1
Proposed legislation.................. ........ * -0.8 -1.4 -1.5 -1.7 -1.8
---------------------------------------------------------------------
GENERAL SCIENCE, SPACE, AND TECHNOLOGY:
Spending:
Discretionary Budget Authority........ 16.7 16.6 16.4 16.4 16.2 16.2 16.2
Mandatory Outlays:
Existing law........................ * * * * * * *
Tax Expenditures:
Existing law.......................... 0.8 0.9 1.5 0.8 0.8 0.8 0.8
Proposed legislation.................. ........ 0.4 0.8 0.5 0.2 0.1 *
---------------------------------------------------------------------
ENERGY:
Spending:
Discretionary Budget Authority........ 4.9 4.3 4.7 4.9 4.6 4.5 4.4
Mandatory Outlays:
Existing law........................ -3.1 -2.9 -2.8 -3.7 -2.8 -3.0 -3.7
Proposed legislation................ ........ ........ ........ -* -* -0.1 -1.2
Credit Activity:
Direct loan disbursements............. 1.0 2.5 2.1 1.7 2.7 1.8 1.7
Tax Expenditures:
Existing law.......................... 2.2 2.3 2.2 2.4 2.5 2.5 2.5
Proposed legislation.................. ........ -* -0.1 -0.1 -0.1 -0.1 -0.1
---------------------------------------------------------------------
NATURAL RESOURCES AND ENVIRONMENT:
Spending:
Discretionary Budget Authority........ 20.7 21.1 22.4 22.4 21.8 21.7 21.8
Mandatory Outlays:
Existing law........................ 0.7 1.0 1.0 0.9 0.9 0.9 0.8
Proposed legislation................ ........ ........ 0.1 0.1 0.1 0.1 0.1
Credit Activity:
Direct loan disbursements............. * * * * * * *
Tax Expenditures:
Existing law.......................... 1.6 1.7 1.7 1.7 1.7 1.7 1.7
Proposed legislation.................. ........ -* -0.1 -0.1 -0.1 -0.1 -0.1
---------------------------------------------------------------------
[[Page 133]]
AGRICULTURE:
Spending:
Discretionary Budget Authority........ 4.2 4.1 4.1 4.0 3.9 3.9 3.9
Mandatory Outlays:
Existing law........................ 5.0 6.1 8.2 7.6 7.2 6.1 5.9
Proposed legislation................ ........ ........ * * * * *
Credit Activity:
Direct loan disbursements............. 6.2 7.1 8.7 8.6 8.3 7.7 7.2
Guaranteed loans...................... 5.1 7.9 8.1 8.0 8.0 8.0 8.0
Tax Expenditures:
Existing law.......................... 0.3 0.3 0.3 0.3 0.4 0.4 0.4
Proposed legislation.................. ........ -* -0.1 -0.1 -0.1 -0.1 -0.1
---------------------------------------------------------------------
COMMERCE AND HOUSING CREDIT:
Spending:
Discretionary Budget Authority........ 3.7 2.4 3.3 3.8 5.2 3.2 3.2
Mandatory Outlays:
Existing law........................ -13.8 -11.4 0.7 2.5 6.9 5.7 6.8
Proposed legislation................ ........ ........ -0.7 0.1 0.3 -1.7 -1.9
Credit Activity:
Direct loan disbursements............. 1.6 8.8 5.0 1.7 1.9 2.3 2.4
Guaranteed loans...................... 181.3 169.0 161.6 161.5 163.4 166.2 169.2
Tax Expenditures:
Existing law.......................... 182.4 188.9 195.9 204.8 213.5 222.0 229.7
Proposed legislation.................. ........ 0.1 0.2 0.2 0.2 0.2 0.1
---------------------------------------------------------------------
TRANSPORTATION:
Spending:
Discretionary Budget Authority........ 13.6 13.8 13.5 14.6 14.7 15.0 15.2
Mandatory Outlays:
Existing law........................ 2.5 2.4 2.4 2.3 2.2 2.0 2.0
Proposed legislation................ ........ ........ * * * -0.1 -0.7
Credit Activity:
Direct loan disbursements............. * 0.2 0.6 0.8 0.9 0.9 0.9
Guaranteed loans...................... 0.8 1.1 0.5 0.5 0.5 0.5 0.5
Tax Expenditures:
Existing law.......................... 1.3 1.4 1.4 1.5 1.5 1.6 1.6
---------------------------------------------------------------------
COMMUNITY AND REGIONAL DEVELOPMENT:
Spending:
Discretionary Budget Authority........ 11.6 9.3 10.9 8.3 7.7 7.8 7.9
Mandatory Outlays:
Existing law........................ 0.3 0.3 -0.1 0.1 0.1 0.3 0.1
Proposed legislation................ ........ 0.2 * * ........ -* -*
Credit Activity:
Direct loan disbursements............. 2.0 2.3 2.5 1.9 2.1 2.2 2.1
Guaranteed loans...................... 0.8 1.5 1.9 2.1 2.1 2.2 2.0
Tax Expenditures:
Existing law.......................... 2.6 2.7 2.7 2.7 2.7 2.6 2.4
Proposed legislation.................. ........ * 0.4 0.6 0.6 0.5 0.5
---------------------------------------------------------------------
EDUCATION, TRAINING, EMPLOYMENT, AND
SOCIAL SERVICES:
Spending:
Discretionary Budget Authority........ 36.1 42.4 46.4 47.4 48.5 49.5 50.3
Mandatory Outlays:
Existing law........................ 13.9 10.5 10.8 10.5 10.6 10.8 11.3
Proposed legislation................ ........ -0.3 2.8 4.6 5.0 4.5 1.9
[[Page 134]]
Credit Activity:
Direct loan disbursements............. 9.1 12.0 14.5 17.6 20.2 21.7 23.1
Guaranteed loans...................... 19.8 21.0 21.3 20.5 20.5 21.5 22.9
Tax Expenditures:
Existing law.......................... 25.2 27.0 27.9 29.2 30.5 31.9 33.3
Proposed legislation.................. ........ 0.2 4.9 7.2 8.9 9.0 9.5
---------------------------------------------------------------------
HEALTH:
Spending:
Discretionary Budget Authority........ 23.3 25.0 25.1 25.1 25.1 25.2 25.2
Mandatory Outlays:
Existing law........................ 96.8 103.5 109.6 116.3 124.8 134.6 145.1
Proposed legislation................ ........ * 3.9 3.7 2.1 -0.2 -5.0
Credit Activity:
Direct loan disbursements............. * * ........ ........ ........ ........ ........
Guaranteed loans...................... 0.2 0.3 0.1 * ........ ........ ........
Tax Expenditures:
Existing law.......................... 72.7 79.2 85.1 91.2 97.3 103.7 110.4
Proposed legislation.................. ........ * * * * * *
---------------------------------------------------------------------
MEDICARE:
Spending:
Discretionary Budget Authority........ 2.9 2.6 2.8 2.8 2.7 2.7 2.7
Mandatory Outlays:
Existing law........................ 171.3 191.6 208.6 228.2 248.8 271.1 295.1
Proposed legislation................ ........ ........ -4.3 -11.4 -22.2 -27.8 -34.6
---------------------------------------------------------------------
INCOME SECURITY:
Spending:
Discretionary Budget Authority........ 27.8 26.0 32.6 36.1 38.9 40.4 41.8
Mandatory Outlays:
Existing law........................ 188.0 197.4 203.6 212.4 222.2 225.6 235.4
Proposed legislation................ ........ 0.6 2.3 2.2 2.3 1.9 2.6
Credit Activity:
Direct loan disbursements............. 0.1 0.1 0.1 * ........ ........ ........
Guaranteed loans...................... * * * * * * *
Tax Expenditures:
Existing law.......................... 83.0 84.8 86.3 87.9 89.5 91.3 93.0
Proposed legislation.................. ........ 0.7 11.3 7.3 9.3 11.5 12.0
---------------------------------------------------------------------
SOCIAL SECURITY:
Spending:
Discretionary Budget Authority........ 3.1 3.5 3.3 3.3 3.2 3.2 3.3
Mandatory Outlays:
Existing law........................ 347.1 364.2 380.9 398.6 417.7 438.0 459.7
Proposed legislation................ ........ ........ ........ -* * * *
Tax Expenditures:
Existing law.......................... 22.9 24.2 25.3 26.5 27.8 28.9 29.9
---------------------------------------------------------------------
VETERANS BENEFITS AND SERVICES:
Spending:
Discretionary Budget Authority \1\.... 18.4 18.9 18.8 18.7 18.7 18.7 18.7
Mandatory Outlays:
Existing law........................ 18.8 20.6 21.7 22.8 24.4 21.5 23.2
Proposed legislation................ ........ ........ 0.6 0.3 0.7 1.1 1.5
Credit Activity:
Direct loan disbursements............. 1.4 1.9 2.2 2.2 2.3 2.3 2.3
Guaranteed loans...................... 28.7 30.2 28.9 25.5 25.0 24.6 24.1
[[Page 135]]
Tax Expenditures:
Existing law.......................... 2.8 2.9 3.1 3.3 3.5 3.7 3.9
---------------------------------------------------------------------
ADMINISTRATION OF JUSTICE:
Spending:
Discretionary Budget Authority........ 20.7 22.8 24.4 25.2 24.4 24.8 25.5
Mandatory Outlays:
Existing law........................ -* 0.8 0.6 0.5 0.4 0.4 0.4
---------------------------------------------------------------------
GENERAL GOVERNMENT:
Spending:
Discretionary Budget Authority........ 11.5 11.8 12.8 12.5 12.1 11.8 11.8
Mandatory Outlays:
Existing law........................ 0.1 0.9 0.8 0.8 0.9 0.7 0.7
Proposed legislation................ ........ ........ -* 0.1 0.2 0.3 0.4
Credit Activity:
Direct loan disbursements............. 0.4 0.5 ........ ........ ........ ........ ........
Tax Expenditures:
Existing law.......................... 46.7 48.1 49.5 50.8 52.1 53.6 55.1
Proposed legislation.................. ........ ........ * * * 0.1 0.1
---------------------------------------------------------------------
NET INTEREST:
Spending:
Mandatory Outlays:
Existing law........................ 241.1 247.5 249.8 251.8 248.1 244.9 238.6
Proposed legislation................ ........ -0.2 * 0.1 0.1 0.1 0.1
Tax Expenditures:
Existing law.......................... 1.3 1.3 1.3 1.3 1.2 1.2 1.2
---------------------------------------------------------------------
UNDISTRIBUTED OFFSETTING RECEIPTS:
Spending:
Mandatory Outlays:
Existing law........................ -37.6 -46.5 -52.9 -41.1 -41.6 -43.2 -45.3
Proposed legislation................ ........ ........ -2.7 -2.4 -4.4 -6.9 -22.7
=====================================================================
FEDERAL GOVERNMENT TOTAL:
Spending:
Discretionary Budget Authority........ 502.5 505.8 530.5 535.4 542.5 549.4 560.6
Mandatory Outlays:
Existing law........................ 1,026.0 1,080.7 1,137.9 1,205.9 1,266.5 1,312.2 1,372.0
Proposed legislation................ ........ 0.3 2.1 -2.7 -16.0 -28.7 -59.5
Credit Activity:
Direct loan disbursements............. 23.6 37.6 37.5 36.8 40.5 40.9 41.7
Guaranteed loans...................... 245.4 243.6 234.7 231.7 234.0 237.5 241.5
----------------------------------------------------------------------------------------------------------------
Notes:
Revenue estimates for proposed legislation affecting tax expenditures are not directly comparable to estimates
for current law tax expenditures, because the current law estimates do not reflect behavioral effects.
* $50 million or less.
\1\ Proposed legislation will supplement budget authority with receipts (estimated at $0.5 billion in 1998).