[Analytical Perspectives]
[Other Technical Presentations]
[16. National Income and Product Accounts]
[From the U.S. Government Publishing Office, www.gpo.gov]


 
                16.  NATIONAL INCOME AND PRODUCT ACCOUNTS

   The National Income and Product Accounts (NIPA's) are an integrated 
set of measures of aggregate U.S. economic activity that are prepared by 
the Department of Commerce. One of the main purposes of the NIPA's is to 
measure the Nation's total production of goods and services, known as 
gross domestic product (GDP), and the incomes generated in its 
production. Because the NIPA's are widely used in economic analysis, it 
is important to show the NIPA presentation of Federal transactions and 
contrast it with the Budget.
   GDP is a measure of the Nation's final output, which excludes 
intermediate product to avoid double counting. Government consumption 
expenditures and gross investment are included in GDP as part of final 
output, together with personal consumption expenditures, gross private 
domestic investment, and net exports of goods and services. Other 
government expenditures--transfer payments, grants to State and local 
governments, subsidies, and net interest payments--are not final output 
and as such are not included in GDP; however, these transactions are 
recorded in the NIPA government receipts and expenditure account. This 
leaves only government consumption expenditures and gross investment--
State and local as well as Federal--to be included in final output.
   Federal transactions are included in the NIPA's as part of the 
government sector. \1\ The Federal sector is designed to measure certain 
important economic effects of Federal transactions in a way that is 
consistent with the conceptual structure of the entire set of integrated 
accounts. The NIPA Federal sector is not itself a budget, because it is 
not a financial plan for proposing, determining, and controlling the 
fiscal activities of the Government. NIPA concepts differ in many ways 
from budget concepts, and therefore the NIPA presentation of Federal 
finances is significantly different from that of the budget.
---------------------------------------------------------------------------
  \1\ The other part of the government sector is a single consolidated 
set of transactions for all U.S. State and local units of government 
combined.
---------------------------------------------------------------------------

              Differences Between the NIPA's and the Budget

   Federal transactions in the NIPA's are measured according to NIPA 
accounting concepts in order to be compatible with the purposes of the 
NIPA's and other transactions recorded in the NIPA's. As a result they 
differ from the budget in netting, timing, and coverage. These 
differences cause total receipts and expenditures in the NIPA's to 
differ from total receipts and outlays in the budget. Differences in 
timing and coverage also cause the NIPA current surplus or deficit to 
differ from the budget surplus or deficit. Netting differences have 
equal effects on receipts and expenditures and thus have no effect on 
the current surplus/deficit. Besides these differences, the NIPA's 
combine transactions into different categories from those used in the 
budget.
   Comprehensive revisions to the NIPA's introduced in October 1999 
significantly changed the way Federal transactions are measured in the 
NIPA's, and, since the budget did not change correspondingly, changed 
the ways in which the NIPA's differ from the budget. The three most 
important changes were 1) the inclusion of computer software in 
investment (government and private) and in depreciation (capital 
consumption); 2) removal of transactions deemed ``capital transfers'' 
from the NIPA government sectors (which removes estate and gift taxes 
from both Federal and the State and local receipts, and removes Federal 
grants for construction of fixed capital from Federal NIPA 
expenditures); and 3) a revised treatment of government employee pension 
plans that treats their transactions analogously to those of private 
pension plans. Under the revised pension treatment, employer and 
employee contributions to government employee pension plans are now 
personal income (as if paid to a private pension plan in the household 
sector) rather than government receipts (contributions for social 
insurance); and pension benefit payments to former government employees 
are now simply transfers within the household sector rather than 
government expenditures (transfers to persons).
   Netting differences arise when the budget records certain 
transactions as offsets to outlays while they are recorded as receipts 
in the NIPA's (or vice versa). The budget treats all income that comes 
to the Government due to its sovereign powers--mainly, but not 
exclusively, taxes--as governmental receipts. On the other hand, the 
budget offsets against outlays any income that arises from voluntary 
business-type transactions with the public. The NIPA's generally follow 
this concept as well, and all income to government enterprises such as 
the Postal Service or the power administrations is offset against 
expenditures. However, the NIPA's have a narrower definition of 
``business-type transactions''. Rents, royalties, and regulatory or 
inspection fees (offsetting receipts in the budget) are recorded in the 
NIPA's as Government receipts (business nontaxes). The NIPA's include 
Medicare premiums as Government receipts, while the budget classifies 
them as business-type transactions (offsetting receipts).
   In the budget, any intragovernmental income from one account to 
another is offset against outlays rather than being recorded as a 
receipt. Government contributions for Federal employee social insurance 
(such as social security) is an example: the budget offsets these 
payments against outlays. In contrast, the NIPA's treat the Federal 
Government like any other employer and show contributions for Federal 
employee social insurance as expenditures by the employing agencies and

[[Page 318]]

as governmental (rather than offsetting) receipts. The NIPA's also 
impute certain transactions that are not explicit in the budget. For 
example, unemployment benefits for Federal employees are financed by 
direct appropriations rather than social insurance contributions. The 
NIPA's impute social insurance contributions by employing agencies to 
finance these benefits--again, treating the Federal Government like any 
other employer.
   Timing differences for receipts occur because the NIPA's generally 
record personal taxes and social insurance contributions when they are 
paid and business taxes when they accrue, while the budget generally 
records all receipts when they are received. When the NIPA's attribute 
corporations' final settlement payments back to the quarter(s) in which 
the profits that gave rise to the tax liability were generated, 
significant timing differences with the budget arise. Timing differences 
for expenditures arise, for example, when the first of a month falls on 
a weekend and monthly benefit checks normally mailed on the first of the 
month may be mailed out a day or two earlier; the budget then reflects 
two payments in one month and none the next. On occasion, the budget 
totals reflect 13 monthly payments in one year and only 11 the next. 
NIPA expenditure figures always reflect 12 benefit payments per year--
again giving rise to a timing difference compared to the budget.
   The budget and the NIPA's also have coverage differences. The NIPA's 
exclude transactions with U.S. territories. The NIPA's also exclude the 
proceeds from the sales of nonproduced assets such as land. Bonuses paid 
on Outer Continental Shelf oil leases and proceeds from broadcast 
spectrum auctions are shown as offsetting receipts in the budget and are 
deducted from budget outlays. In the NIPA's these transactions are 
excluded as an exchange of assets with no production involved.
   A type of coverage difference arises on the expenditure side because 
of the NIPA treatment of government investment. The budget includes 
outlays for Federal investments as they are paid for, while the Federal 
sector of the NIPA's instead excludes current investments but includes a 
depreciation charge on past investments (``consumption of general 
government fixed capital'') among ``current expenditures.'' The 
inclusion of depreciation on fixed capital (structures, equipment and 
software) in current expenditures is a proxy for the services of 
capital; i.e., for its contribution to government output of public 
services. The October 1999 comprehensive revisions to the NIPA's 
reclassified software as investment, adding to the measured size of both 
investments and capital consumption (government and private).
   The revised treatment of government pension plan income and outgo in 
the 1999 revisions also gave rise to a form of coverage difference. 
Where the budget treats employee payments to these pension plans as 
governmental receipts, and employer contributions as offsets to outlays, 
the NIPA's now treat both as personal income, as if the pension plan 
were in the private (household) sector; the budget records a government 
check to a retired government employee as a current outlay, but under 
the new NIPA concepts, no government expenditure then occurs; the 
payment is treated as a transfer of income within the household sector.
   Also as part of the 1999 comprehensive revisions, Federal investment 
grants to State and local governments (such as for interstate highway 
construction), investment subsidies to business, and forgiveness of debt 
owed by foreign governments are now excluded from the NIPA's as being 
capital transfers. Likewise, estate and gift taxes, included in budget 
receipts, are now excluded from the NIPA's as capital transfers.
   Financial transactions such as loan disbursements, loan repayments, 
loan asset sales, and loan guarantees are excluded from the NIPA's on 
the grounds that such transactions simply involve an exchange of assets. 
In contrast, under the Federal Credit Reform Act of 1990, for direct 
loan obligations and loan guarantee commitments made after 1991, the 
budget records the estimated subsidy cost of the direct loan or loan 
guarantee as an outlay when the loan is disbursed. The cash flows with 
the public are recorded in nonbudgetary accounts as a means of financing 
the budget rather than as budgetary transactions themselves. This 
treatment recognizes that part of a Federal direct loan is an exchange 
of assets with equal value but part is a subsidy to the borrower. It 
also recognizes the subsidy normally granted by loan guarantees. In the 
NIPA's, neither the subsidies nor the loan transactions are included; 
however, the NIPA's include all interest transactions with the public, 
including net interest paid to the financing accounts.
   Deposit insurance outlays for resolving failed banks and thrift 
institutions are similarly excluded from the NIPA's on the grounds that 
there are no offsetting current income flows from these transactions. In 
1991, this exclusion was the largest difference between the NIPA's and 
the budget and tended to make the budget deficit larger than the NIPA 
current deficit. In subsequent years, as assets acquired from failed 
financial institutions were sold, these collections tended to make the 
budget deficit smaller than the NIPA current deficit.

                     Federal Sector Current Receipts

   Table 16-1 shows Federal current receipts in the four major 
categories used in the NIPA's, which are similar to the budget 
categories but with significant differences.

   Personal tax and nontax receipts is the largest category of current 
receipts. It is composed primarily of personal income taxes, but also 
includes fees, fines, and other receipts from persons.
   Corporate profits tax accruals differs in classification from the 
corresponding budget category primarily because the NIPA's include the 
deposit of earnings of the Federal Reserve System as corporate profits 
taxes, while the budget treats these collections as miscellaneous 
receipts. The timing difference between the

[[Page 319]]

                                                    Table 16-1.  FEDERAL TRANSACTIONS IN THE NATIONAL INCOME AND PRODUCT ACCOUNTS, 1991-2002
                                                                                    (In billions of dollars)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 Actual                                                           Estimate
                         Description                         -----------------------------------------------------------------------------------------------------------------------------------
                                                                 1991       1992       1993       1994       1995       1996       1997       1998       1999       2000       2001       2002
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                      CURRENT RECEIPTS
Personal tax and nontax receipts............................     465.7      473.9      500.9      541.2      583.7      654.7      736.3      823.2      875.9      997.0    1,068.9    1,077.3
Corporate profits tax accruals..............................     111.5      115.6      131.0      152.5      177.8      187.8      198.6      210.9      213.5      243.1      233.2      242.1
Indirect business tax and nontax accruals...................      75.4       80.0       84.1       94.2       93.8       90.3       97.9       96.1       98.4      109.7      117.0      119.5
Contributions for social insurance..........................     413.1      434.9      458.4      487.9      515.8      535.8      566.1      603.8      644.6      682.9      717.5      760.8
                                                             -----------------------------------------------------------------------------------------------------------------------------------
      Total current receipts................................   1,065.7    1,104.4    1,174.3    1,275.8    1,371.0    1,468.6    1,599.0    1,734.0    1,832.5    2,032.8    2,136.7    2,199.7
                                                             ===================================================================================================================================
                    CURRENT EXPENDITURES

Consumption expenditures....................................     437.5      442.0      444.8      441.6      441.5      435.8      453.8      451.6      466.2      486.4      508.4      531.0
  Defense...................................................     321.5      314.9      311.1      304.6      299.6      295.5      304.0      300.5      305.5      319.7      324.4      340.1
  Nondefense................................................     116.0      127.1      133.7      137.1      141.9      140.2      149.8      151.2      160.8      166.7      184.1      191.0
Transfer payments...........................................     448.1      548.4      590.2      614.8      646.6      680.4      711.0      728.1      741.9      768.0      828.7      872.0
  To persons................................................     478.1      537.1      573.4      599.3      633.8      668.6      699.9      717.3      730.8      758.1      817.0      860.5
  To the rest of the world..................................     -29.9       11.3       16.8       15.5       12.8       11.9       11.2       10.9       11.1       10.0       11.7       11.5
Grants-in-aid to State and local governments................     125.4      145.5      157.7      172.8      184.3      188.4      191.9      206.5      223.8      243.7      270.4      304.6
Net interest paid...........................................     218.9      229.7      228.4      234.0      261.9      272.6      275.4      278.1      268.9      264.8      248.2      230.1
Subsidies less current surplus of Government enterprises....      26.4       28.4       38.6       32.9       34.3       34.4       30.8       30.6       32.4       50.9       44.8       41.0
Wage disbursements less accruals............................        -*   .........  .........  .........  .........  .........  .........  .........  .........  .........  .........  .........
                                                             -----------------------------------------------------------------------------------------------------------------------------------
      Total current expenditures............................   1,256.3    1,394.1    1,459.7    1,496.0    1,568.6    1,611.6    1,663.0    1,695.0    1,733.2    1,813.8    1,900.5    1,978.7
                                                             ===================================================================================================================================
      Current surplus or deficit (-)........................    -190.7     -289.7     -285.4     -220.2     -197.5     -143.0      -64.0       39.0       99.3      219.0      236.2      221.0

                          ADDENDUM

Gross investment............................................      89.1       87.5       86.2       82.1       83.0       85.5       80.7       85.0       94.0      103.8      117.6      122.7
  Defense...................................................      65.5       60.5       56.8       55.2       53.7       54.9       47.9       49.5       52.4       55.8       63.2       64.5
  Nondefense................................................      23.5       27.0       29.4       26.9       29.3       30.6       32.9       35.5       41.6       48.0       54.4       58.3
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* Less than $50 million.

NIPA's and the budget is especially large for corporate receipts.
   Indirect business tax and nontax accruals is composed of excise 
taxes, customs duties, royalties, fines, and other receipts from 
business.
   Contributions for social insurance differs from the corresponding 
budget category primarily because: (1) the NIPA's include Federal 
employer contributions for social insurance as a Government receipt, 
while the budget offsets these contributions against outlays as 
undistributed offsetting receipts; (2) the NIPA's include premiums for 
Part B of Medicare as Government receipts, while the budget again nets 
them against outlays; (3) the NIPA's treat government employee 
contributions to their pension plans as personal income, while the 
budget includes them in Government receipts; and (4) the NIPA's impute 
contributions for Federal employees' unemployment insurance and workers' 
compensation.

                   Federal Sector Current Expenditures

   Table 16-1 shows current expenditures in the six major NIPA 
categories, which are very different from the budget categories.
   Government consumption expenditures are the goods and services 
purchased by the Federal Government in the current account, including 
compensation of employees and depreciation charges on federally owned 
fixed capital (``consumption of general government fixed capital''). 
Gross investment (shown as addendum items in Table 16-1) is excluded 
from current expenditures in computing the government current surplus or 
current deficit on a NIPA basis, whereas depreciation is included. The 
NIPA's treat State and local investment and capital consumption in the 
same way -- regardless of the extent to which it is financed with 
Federal aid (capital transfers) or from State and local own source 
receipts.
   Although gross investment is not included in government current 
expenditures, both government gross investment and current consumption 
expenditures (including depreciation) are included in total GDP, which 
makes the treatment of the government sectors in the NIPA's similar to 
that of the private sector.
   Transfer payments are the largest expenditure category. Transfer 
payments to persons are mainly for income security and health programs, 
such as Social Security and Medicare. (Since the 1999 NIPA revisions, 
payment of pension benefits to former government employees is no longer 
included in transfer payments to persons.) Transfer payments to the rest 
of the world include grants to foreign governments and payments under 
Social Security and other similar programs to individuals living abroad.
   Grants-in-aid to State and local governments help finance a range of 
programs, including income security,

[[Page 320]]

Medicaid, education, and others (but capital transfers for construction 
of highways, airports, waste-water treatment plants and mass transit are 
now excluded).

   Net interest paid is the interest paid by the Government on its debt 
(excluding debt held by trust funds, other than Federal employee pension 
plans; and other Government accounts), less interest received on its 
loans.
   Subsidies less current surplus of Government enterprises consist of 
two elements: (1) subsidy payments for resident businesses (excluding 
subsidies for investment); and (2) the current surplus (or deficit) of 
``Government enterprises,'' such as the Postal Service, which are 
business-type operations of Government that usually appear in the budget 
as public enterprise revolving funds. Depreciation (consumption of 
enterprise fixed capital) is netted in calculating the current surplus 
of government enterprises.
   NIPA subsidies do not include the imputed credit subsidies estimated 
as budget outlays under credit reform. Rather, loans and guarantees are 
categorized as financial transactions and are excluded from the NIPA's 
except for associated interest and fees.
   Wage disbursements less accruals is an adjustment that is necessary 
to the extent that the wages paid in a period differ from the amount 
earned in the period.

                       Differences in the Estimates

   Since the introduction of the unified budget in January 1968, NIPA 
receipts have been less than budget receipts in most years, due 
principally to the fact that estate and gift taxes, which they exclude 
(as capital transfers) have exceeded Medicare premiums, which they 
include but budget receipts do not. NIPA current expenditures have 
usually been higher than budget outlays (from which the Medicare 
premiums and employer retirement contributions are netted out as 
offsetting receipts), despite the omission from NIPA expenditures of 
grants for capital construction and pension benefits payments to former 
government employees. However, two components of budget outlays are 
sometimes sufficiently large in combination to match the netting 
adjustments. These are financial transactions and payments to U.S. 
territories. Large outlays associated with resolving the failed savings 
and loan associations and banks in 1990 and 1991 caused those year's 
budget outlays to exceed NIPA current expenditures. With the change in 
budgetary treatment of direct loans in 1992 under credit reform, one 
type of financial transaction--direct loans to the public--has been 
recorded in the budget in a way that is closer to the NIPA treatment. 
Disbursement and repayment of loans are now recorded outside the budget 
as in the Federal sector of the NIPA's, although, unlike the NIPA's, 
credit subsidies are recorded as budget outlays.

                                          Table 16-2.  RELATIONSHIP OF THE BUDGET TO THE FEDERAL SECTOR, NIPA's
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Actual                                                     Estimate
                                 -----------------------------------------------------------------------------------------------------------------------
                                    1991      1992      1993      1994      1995      1996      1997      1998      1999      2000      2001      2002
--------------------------------------------------------------------------------------------------------------------------------------------------------

------------ RECEIPTS-----------------------------------------------------------------------------------------------------------------------------------

Budget receipts.................   1,055.0   1,091.3   1,154.4   1,258.6   1,351.8   1,453.1   1,579.3   1,721.8   1,827.5   2,025.2   2,136.9   2,191.7
  Contributions to government         -4.6      -4.8      -4.8      -4.7      -4.6      -4.5      -4.4      -4.3      -4.5      -4.8      -4.6      -4.3
   employee retirement plans....
  Capital transfers received....     -11.0     -11.0     -12.3     -15.1     -14.5     -17.1     -19.7     -23.9     -27.6     -28.8     -30.9     -28.5
  Other coverage differences....      -1.9      -2.0      -2.0      -2.4      -2.5      -3.6      -3.8      -5.7      -6.9      -8.2      -9.6      -9.8
  Netting and grossing..........      27.3      32.8      37.5      39.2      37.3      37.0      41.6      40.5      41.1      45.8      52.1      54.8
  Timing differences............       0.8      -1.9       1.6       0.1       3.4       3.6       6.0       5.7       3.0       3.5      -7.2      -4.2

    NIPA current receipts.......   1,065.7   1,104.4   1,174.3   1,275.8   1,371.0   1,468.6   1,599.0   1,734.0   1,832.5   2,032.8   2,136.7   2,199.7
                                 =======================================================================================================================
          EXPENDITURES

Budget outlays..................   1,324.4   1,381.7   1,409.5   1,461.9   1,515.8   1,560.6   1,601.3   1,652.6   1,702.9   1,788.8   1,856.2   1,960.6
  Government employee retirement      30.8      32.7      31.7      30.1      29.0      27.0      31.8      31.4      32.3      31.6      31.6      32.3
   plan transactions............
  Deposit insurance and other        -80.1      -9.5      20.2       1.5       7.1      -2.0      -8.0      -6.7     -12.5       1.7      26.8       1.4
   financial transactions.......
  Capital transfers paid........     -21.4     -21.8     -23.2     -24.6     -27.1     -27.6     -28.8     -28.2     -31.3     -35.1     -38.3     -41.6
  Net purchases of nonproduced        -0.2      -0.2      -0.2      -0.2       7.4       0.1      11.0       5.2       1.6        -*       1.0       1.2
   assets.......................
  Net investment................     -16.9     -12.7      -8.3      -1.4       0.4      -0.5       5.6       2.9      -2.6      -5.8     -13.4     -13.8
  Other coverage differences....      -6.8      -5.6      -8.1      -4.8      -3.0       3.0      11.5       0.8       2.4     -13.6     -17.8     -16.9
  Netting and grossing                27.3      32.8      37.5      39.2      37.3      37.0      41.6      40.5      41.1      45.8      52.1      54.8
   differences..................
  Timing differences............      -0.7      -3.2       0.6      -5.7       1.7      14.0      -3.0      -3.7      -0.8       0.3       2.3       0.7

    NIPA current expenditures...   1,256.3   1,394.1   1,459.7   1,496.0   1,568.6   1,611.6   1,663.0   1,695.0   1,733.2   1,813.8   1,900.5   1,978.7

            ADDENDUM

  Budget surplus or deficit (-).    -269.4    -290.4    -255.1    -203.3    -164.0    -107.5     -22.0      69.2     124.6     236.4     280.7     231.2
  NIPA current surplus or           -190.7    -289.7    -285.4    -220.2    -197.5    -143.0     -64.0      39.0      99.3     219.0     236.2     221.0
   deficit (-)..................
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Less than $50 million.

[[Page 321]]

   During the period 1975-1992, the budget deficit exceeded the Federal 
current deficit as measured in the NIPA's every year. The largest 
difference, $78.8 billion, occurred in 1991 as a result of resolving 
failed financial institutions as discussed above; the budget deficit was 
then $269.4 billion, while the NIPA current deficit was $190.7 billion. 
In 1993-1997, the NIPA current account deficit was above the budget 
deficit, while for 1998-2002, the NIPA current account surplus is 
projected to be lower than the budget surplus.
   Table 16-1 displays Federal transactions using NIPA concepts with 
actual data for the years 1991-2000 and estimates for 2001 and 2002 
consistent with the Administration's budget proposals. Table 16-2 
summarizes the reasons for differences between the data using budget 
concepts and NIPA concepts. Table 16-3 displays quarterly data using 
NIPA concepts beginning in October 1999. Annual NIPA data for 1960-2002 
are published in Section 14 of a separate budget volume, Historical 
Tables, Budget of the U.S. Government, Fiscal Year 2002.
   Additional detailed estimates of receipts and current expenditures 
will be published in a forthcoming issue of the Department of Commerce 
publication, Survey of Current Business.

                                                       Table 16-3.  FEDERAL RECEIPTS AND EXPENDITURES IN THE NIPA's, QUARTERLY, 2000-2002
                                                                  (In billions of dollars; seasonally adjusted at annual rates)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                      Actual                                                           Estimate
                                                             -----------------------------------------------------------------------------------------------------------------------------------
                                                              Oct.-Dec.  Jan.-Mar.  Apr.-June    July-    Oct.-Dec.  Jan.-Mar.  Apr.-June    July-    Oct.-Dec.  Jan.-Mar.  Apr.-June    July-
                         Description                         ---------------------------------   Sept.   ---------------------------------   Sept.   ---------------------------------   Sept.
                                                                                              -----------                                 -----------                                 ----------
                                                                 1999       2000       2000       2000       2000       2001       2001       2001       2001       2002       2002       2002
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                      CURRENT RECEIPTS
Personal tax and nontax receipts............................     938.2      978.0    1,003.6    1,030.9    1,058.2    1,084.1    1,097.0    1,108.7    1,118.6    1,090.1    1,102.7    1,115.3
Corporate profits tax accruals..............................     232.3      245.7      250.5      249.4         NA      230.3      232.0      237.3      241.6      241.0      242.5      243.3
Indirect business tax and nontax accruals...................     103.9      106.8      108.9      108.9      109.0      109.2      110.7      112.1      112.1      113.0      113.8      114.6
Contributions for social insurance..........................     666.6      681.5      691.8      700.2      708.8      722.8      731.4      740.2      748.8      765.6      774.4      783.4
                                                             -----------------------------------------------------------------------------------------------------------------------------------
      Total current receipts................................   1,941.0    2,011.9    2,054.8    2,089.4         NA    2,146.4    2,171.0    2,198.3    2,221.1    2,209.7    2,233.4    2,256.7
                                                             ===================================================================================================================================
                    CURRENT EXPENDITURES

Consumption expenditures....................................     487.0      478.7      499.0      489.9      489.0      497.2      503.7      502.3      507.3      518.9      525.6      529.9
  Defense...................................................     324.7      311.2      325.7      319.6      322.4      324.3      327.8      324.8      330.8      338.8      344.6      348.2
  Nondefense................................................     162.3      167.5      173.3      170.3      166.7      172.9      175.9      177.5      176.5      180.1      181.0      181.7
Transfer payments...........................................     757.7      763.2      779.0      785.2      802.1      820.1      834.2      841.7      854.2      866.3      873.7      876.7
  Domestic (``to persons'').................................     738.8      754.9      769.9      773.8      778.4      808.5      828.1      836.4      839.0      857.0      863.4      865.4
  Foreign...................................................      18.9        8.3        9.1       11.4       23.6       11.6        6.1        5.4       15.1        9.3       10.3       11.3
Grants-in-aid to State and local governments................     238.8      235.0      240.9      251.2      251.2      264.1      278.9      287.5      297.3      302.4      306.4      312.0
Net interest paid...........................................     261.8      265.0      260.3      257.2      254.6      249.7      244.9      240.3      236.7      232.0      226.9      221.5
Subsidies less current surplus of Government enterprises....      52.3       34.1       34.6       52.4       32.4       30.8       30.7       30.5       30.1       29.6       29.2       28.9
Wage disbursements less accruals............................  .........  .........  .........  .........  .........  .........  .........  .........  .........  .........  .........  .........
                                                             -----------------------------------------------------------------------------------------------------------------------------------
      Total current expenditures............................   1,797.7    1,776.0    1,813.9    1,836.0    1,829.3    1,862.0    1,892.4    1,902.3    1,925.6    1,949.1    1,961.8    1,969.1
                                                             ===================================================================================================================================
      Current surplus.......................................     143.3      235.8      240.9      253.3         NA      284.5      278.6      296.0      295.5      260.6      271.6      287.5

                          ADDENDUM

Gross investment............................................     104.5      101.3      105.5      104.3      112.8      114.9      115.4      119.6      118.3      120.7      121.8      123.8
  Defense...................................................      56.1       55.4       56.2       55.4       61.9       62.9       62.4       65.5       63.2       64.5       64.6       65.6
  Nondefense................................................      48.5       46.0       49.3       48.9       50.9       52.0       53.0       54.1       55.1       56.2       57.2       58.2
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NA = Not available; actual data shown for the Oct.-Dec. 2000 quarter are Department of Commerce preliminary estimates published February 28, 2001.
* Less than $50 million.