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



[[Page 367]]


 
                17.  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. 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.
  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. GDP is a measure of 
the Nation's final output, which excludes intermediate product to avoid 
double counting. Government consumption expenditures and gross 
investment--State and local as well as Federal--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 
(exports minus imports).
  Other government expenditures--transfer payments, grants to State and 
local governments, subsidies, and net interest payments--are not 
purchases of final output and as such are not included in GDP; however, 
these transactions are recorded in the NIPA government receipts and 
expenditure account, together with government consumption expenditures 
and gross investment.
   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 set of transactions 
for all U.S. State and local units of government, treated as a single 
consolidated entity.
---------------------------------------------------------------------------

              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.
   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. 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 
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.

[[Page 368]]



                                                    Table 17-1.  FEDERAL TRANSACTIONS IN THE NATIONAL INCOME AND PRODUCT ACCOUNTS, 1992-2003
                                                                                    (In billions of dollars)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 Actual                                                           Estimate
                         Description                         -----------------------------------------------------------------------------------------------------------------------------------
                                                                 1992       1993       1994       1995       1996       1997       1998       1999       2000       2001       2002       2003
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                      CURRENT RECEIPTS
Personal tax and nontax receipts............................     473.9      500.9      541.2      583.7      654.7      736.3      822.7      878.4      989.7    1,004.7      938.8      987.1
Corporate profits tax accruals..............................     115.6      131.0      152.5      177.8      187.8      198.6      206.4      211.3      237.2      191.6      168.6      194.7
Indirect business tax and nontax accruals...................      80.0       84.1       94.2       93.8       90.3       97.9       97.3       98.2      109.8      111.6      107.4      111.5
Contributions for social insurance..........................     434.9      458.4      487.9      515.8      535.8      566.1      604.2      641.4      695.2      721.1      746.4      786.8
                                                             -----------------------------------------------------------------------------------------------------------------------------------
      Total current receipts................................   1,104.4    1,174.3    1,275.8    1,371.0    1,468.6    1,599.0    1,730.7    1,829.3    2,031.9    2,029.1    1,961.2    2,080.1
                                                             ===================================================================================================================================
                    CURRENT EXPENDITURES
 
Consumption expenditures....................................     442.0      444.8      441.6      441.5      435.8      453.8      452.0      464.8      490.2      520.2      577.7      625.2
  Defense...................................................     314.9      311.1      304.6      299.6      295.5      304.0      300.3      306.1      321.4      336.5      370.2      407.4
  Nondefense................................................     127.1      133.7      137.1      141.9      140.2      149.8      151.7      158.7      168.7      183.6      207.5      217.9
Transfer payments...........................................     548.4      590.2      614.8      646.6      680.4      711.0      727.9      741.6      770.2      827.8      926.3      933.7
  To persons................................................     537.1      573.4      599.3      633.8      668.6      699.9      716.9      730.6      756.4      817.2      911.9      921.1
  To the rest of the world..................................      11.3       16.8       15.5       12.8       11.9       11.2       11.0       10.9       13.8       10.6       14.4       12.5
Grants-in-aid to State and local governments................     145.5      157.7      172.8      184.3      188.4      191.9      207.2      225.2      242.9      268.8      302.1      333.4
Net interest paid...........................................     229.7      228.4      234.0      261.9      272.6      275.4      278.3      267.2      263.0      250.5      221.7      226.3
Subsidies less current surplus of Government enterprises....      28.4       38.6       32.9       34.3       34.4       30.8       31.8       34.6       52.4       56.5       45.7       39.6
Wage disbursements less accruals............................  .........  .........  .........  .........  .........  .........  .........  .........  .........  .........  .........  .........
                                                             -----------------------------------------------------------------------------------------------------------------------------------
      Total current expenditures............................   1,394.1    1,459.7    1,496.0    1,568.6    1,611.6    1,663.0    1,697.1    1,733.3    1,818.6    1,923.8    2,073.5    2,158.2
                                                             ===================================================================================================================================
      Current surplus or deficit (-)........................    -289.7     -285.4     -220.2     -197.5     -143.0      -64.0       33.5       96.0      213.3      105.3     -112.4      -78.1
 
                          ADDENDUM
 
Gross investment............................................      87.5       86.2       82.1       83.0       85.5       80.7       85.0       91.2       96.3      100.8      106.0      113.4
  Defense...................................................      60.5       56.8       55.2       53.7       54.9       47.9       49.6       51.5       52.8       56.2       57.6       60.7
  Nondefense................................................      27.0       29.4       26.9       29.3       30.6       32.9       35.4       39.7       43.5       44.6       48.3       52.7
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* $50 million or less.

   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. When the first of 
a month falls on a weekend, 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, while the Federal 
sector of the NIPA instead excludes current investments but includes a 
depreciation charge on past investments (``consumption of general 
government fixed capital'') as part of ``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 treatment of government pension plan income and outgo creates a 
coverage difference. Where the budget treats employee payments to these 
pension plans as governmental receipts, and employer contributions by 
agencies as offsets to outlays, the NIPA's treat both of these 
components of employee compensation as personal income, in the same way 
as it treats contributions to pension plans in the private (household) 
sector. Likewise, the budget records a government check to a retired 
government employee as a current outlay, but under NIPA concepts, no 
government expenditure occurs at that time; the payment is treated as a 
transfer of income within the household sector.
   Federal investment grants to State and local governments (such as for 
interstate highway construction), investment subsidies to business, and 
forgiveness of

[[Page 369]]

debt owed by foreign governments are included as outlays in the budget 
but excluded from the NIPA's as being capital transfers. Likewise, 
estate and gift taxes, included in budget receipts, are 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, like the budget, 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 17-1 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 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 governmental 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 governmental receipts, while the budget 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 governmental receipts; and (4) the NIPA's impute contributions 
for Federal employees' unemployment insurance and workers' compensation.

                   Federal Sector Current Expenditures

   Table 17-1 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. Gross investment (shown as 
addendum items in Table 17-1) is thus excluded from current expenditures 
in computing the government current surplus or current deficit on a NIPA 
basis, whereas depreciation--charges on federally owned fixed capital 
(``consumption of general government fixed capital'')--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. Investment includes structures, equipment, 
and computer software.
   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. Payment of pension benefits to 
former government employees is not included, as explained previously . 
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, Medicaid, education, and others 
(but capital transfers for construction of highways, airports, waste-
water treatment plants, and mass transit are excluded).

[[Page 370]]



                                          Table 17-2.  RELATIONSHIP OF THE BUDGET TO THE FEDERAL SECTOR, NIPA's
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Actual                                                     Estimate
                                 -----------------------------------------------------------------------------------------------------------------------
                                    1992      1993      1994      1995      1996      1997      1998      1999      2000      2001      2002      2003
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
------------ RECEIPTS-----------------------------------------------------------------------------------------------------------------------------------
 
Budget receipts.................   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   1,991.0   1,946.1   2,048.1
  Contributions to government         -4.8      -4.8      -4.7      -4.6      -4.5      -4.4      -4.3      -4.5      -4.8      -4.7      -4.6      -4.6
   employee retirement plans....
  Capital transfers received....     -11.0     -12.3     -15.1     -14.5     -17.1     -19.7     -23.9     -27.6     -28.8     -28.2     -27.3     -22.8
  Other coverage differences....      -2.0      -2.0      -2.4      -2.5      -3.6      -3.8      -6.2      -7.1      -8.2      -9.2      -9.7     -10.7
  Netting and grossing..........      32.8      37.5      39.2      37.3      37.0      41.6      40.8      41.3      45.3      53.3      53.4      56.3
  Timing differences............      -1.9       1.6       0.1       3.4       3.6       6.0       2.5      -0.2       3.1      26.9       3.3      13.8
 
    NIPA current receipts.......   1,104.4   1,174.3   1,275.8   1,371.0   1,468.6   1,599.0   1,730.7   1,829.3   2,031.9   2,029.1   1,961.2   2,080.1
                                 =======================================================================================================================
          EXPENDITURES
 
Budget outlays..................   1,381.7   1,409.5   1,461.9   1,515.8   1,560.6   1,601.3   1,652.6   1,701.9   1,788.8   1,863.9   2,052.3   2,128.2
  Government employee retirement      32.7      31.7      30.1      29.0      27.0      31.8      31.6      32.4      31.8      32.0      32.1      41.7
   plan transactions............
  Deposit insurance and other         -9.5      20.2       1.5       7.1      -2.0      -8.0      -6.9     -12.1      -4.3      25.7       0.9      -2.6
   financial transactions.......
  Capital transfers paid........     -21.8     -23.2     -24.6     -27.1     -27.6     -28.8     -28.2     -31.3     -35.0     -39.8     -41.9     -41.7
  Net purchases of nonproduced        -0.2      -0.2      -0.2       7.4       0.1      11.0       5.2       1.5      -0.1       0.8       0.3       0.2
   assets.......................
  Net investment................     -12.7      -8.3      -1.4       0.4      -0.5       5.6       2.8      -0.5      -1.0       1.3      -0.1      -2.5
  Other coverage differences....      -5.6      -8.1      -4.8      -3.0       3.0      11.5       0.7       2.0       3.0     -17.0     -18.3     -19.8
  Netting and grossing                32.8      37.5      39.2      37.3      37.0      41.6      40.8      41.3      45.3      53.3      53.4      56.3
   differences..................
  Timing differences............      -3.2       0.6      -5.7       1.7      14.0      -3.0      -1.3      -2.0     -10.1       3.8      -5.2      -1.6
 
    NIPA current expenditures...   1,394.1   1,459.7   1,496.0   1,568.6   1,611.6   1,663.0   1,697.1   1,733.3   1,818.6   1,923.8   2,073.5   2,158.2
 
            ADDENDUM
 
  Budget surplus or deficit (-).    -290.4    -255.1    -203.3    -164.0    -107.5     -22.0      69.2     125.5     236.4     127.1    -106.2     -80.2
  NIPA current surplus or           -289.7    -285.4    -220.2    -197.5    -143.0     -64.0      33.5      96.0     213.3     105.3    -112.4     -78.1
   deficit (-)..................
--------------------------------------------------------------------------------------------------------------------------------------------------------
* $50 million or less.

   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. This is due 
principally to the fact that estate and gift taxes, which they exclude 
(as capital transfers), have exceeded Medicare premiums, which they 
include as a governmental receipt but the budget treats as an offsetting 
receipt. (In the budget, offsetting receipts are netted against the 
outlay total and not included in the governmental receipts total.) 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 benefit 
payments to former government employees.
   Two components of budget outlays, however, 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 made since that time are 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.

[[Page 371]]



                                                       Table 17-3.  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.
                                                                                              -----------                                 -----------                                 ----------
                                                                 2000       2001       2001       2001       2001       2002       2002       2002       2002       2003       2003       2003
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                      CURRENT RECEIPTS
Personal tax and nontax receipts............................   1,040.5    1,051.4    1,060.0      897.2                 947.9      945.9      950.9      963.2      985.7    1,010.2    1,041.6
Corporate profits tax accruals..............................     219.4      205.0      197.3      177.4                 115.9      123.2      132.1      156.1      161.9      170.3      177.9
Indirect business tax and nontax accruals...................     112.7      112.2      112.0      110.2                 109.8      109.8      109.9      112.0      112.8      114.3      116.3
Contributions for social insurance..........................     704.9      718.8      722.2      722.3                 737.3      743.4      750.3      756.6      778.6      786.9      795.9
                                                             -----------------------------------------------------------------------------------------------------------------------------------
      Total current receipts................................   2,077.5    2,087.4    2,091.5    1,907.1               1,910.9    1,922.3    1,943.2    1,987.9    2,039.0    2,081.7    2,131.8
                                                             ===================================================================================================================================
                    CURRENT EXPENDITURES
 
Consumption expenditures....................................     494.1      507.5      510.1      513.7                 554.1      566.0      573.3      582.2      600.8      610.3      617.1
  Defense...................................................     325.3      338.3      339.5      343.1                 368.8      376.5      381.2      390.1      405.2      412.5      416.7
  Nondefense................................................     168.8      169.2      170.6      170.6                 185.3      189.5      192.1      192.0      195.6      197.8      200.4
Transfer payments...........................................     802.9      811.7      823.3      838.6                 899.2      920.1      946.1      939.9      925.9      909.0      894.2
  Domestic (``to persons'').................................     777.4      805.8      816.3      830.9                 887.5      906.8      931.2      914.5      914.9      900.1      885.8
  Foreign...................................................      25.5        5.8        7.1        7.7                  11.7       13.3       14.9       25.4       10.9        8.9        8.4
Grants-in-aid to State and local governments................     250.1      264.0      281.2      266.4                 296.8      309.2      316.9      325.0      331.2      336.4      340.9
Net interest paid...........................................     259.9      253.5      242.5      232.5                 214.4      210.8      210.0      212.0      215.9      219.1      222.2
Subsidies less current surplus of Government enterprises....      48.1       45.4       47.6       69.5                  48.7       45.2       39.0       37.5       38.7       40.6       42.6
Wage disbursements less accruals............................  .........  .........  .........  .........             .........  .........  .........  .........  .........  .........  .........
                                                             -----------------------------------------------------------------------------------------------------------------------------------
      Total current expenditures............................   1,855.0    1,882.1    1,904.7    1,920.7               2,013.2    2,051.3    2,085.4    2,096.5    2,112.5    2,115.4    2,117.0
                                                             ===================================================================================================================================
      Current surplus.......................................     222.5      205.3      186.7      -13.6                -102.3     -129.0     -142.2     -108.6      -73.6      -33.7       14.8
 
                          ADDENDUM
 
Gross investment............................................     100.1       97.8       99.9      102.0                 104.3      106.9      110.2      110.7      113.2      113.6      116.9
  Defense...................................................      57.1       54.6       56.7       56.5                  56.4       57.9       60.0       59.2       60.8       60.2       62.7
  Nondefense................................................      43.0       43.2       43.2       45.5                  47.9       49.0       50.2       51.5       52.5       53.4       54.1
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 Department of Commerce advance estimates for the Oct.-Dec. quarter, released January 30, 2002, were not available in time for inclusion in this table.
* $50 million or less.

   During the period 1975-1992, the budget deficit exceeded the Federal 
current deficit as measured in the NIPA's every year. The largest 
difference, $78.7 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 slightly larger than 
the budget deficit each year. For 1998-2001, the NIPA current account 
surplus was lower than the budget surplus. For 2002 the NIPA current 
account deficit is projected to be larger than the budget deficit, but 
that for 2003, slightly smaller.
   Table 17-1 displays Federal transactions using NIPA concepts with 
actual data for the years 1992-2001 and estimates for 2002 and 2003 
consistent with the Administration's budget proposals. Table 17-2 
summarizes the reasons for differences between the data using budget 
concepts and NIPA concepts. Table 17-3 displays quarterly data using 
NIPA concepts beginning in October 2000. Annual NIPA data for 1960-2003 
are published in Section 14 of a separate budget volume, Historical 
Tables, Budget of the U.S. Government, Fiscal Year 2003.
   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.