    [Analytical Perspectives]
    [Table of Contents]
    [From the U.S. Government Printing Office, www.gpo.gov]

                                                                        TABLE OF CONTENTS

                                                                                                                                                     Page

    List of Charts and Tables..................................................................................................................          iii

    Introduction

         1.           Introduction.............................................................................................................            3

    Performance and Management Assessments

         2.           Budget and Performance Integration and the Program Assessment Rating Tool (PART).........................................            9

    Crosscutting Programs

         3.           Homeland Security Funding Analysis.......................................................................................           25

         4.           Strengthening Federal Statistics.........................................................................................           41

         5.           Research and Development.................................................................................................           47

         6.           Federal Investment.......................................................................................................           63

         7.           Credit and Insurance.....................................................................................................           75

         8.           Aid to State and Local Governments.......................................................................................          113

         9.           Integrating Services with Information Technology.........................................................................          159

        10.           Federal Drug Control Funding.............................................................................................          165

    Economic Assumptions and Analyses

        11.           Economic Assumptions.....................................................................................................          169

        12.           Stewardship..............................................................................................................          181

        13.           National Income and Product Accounts.....................................................................................          207

    Budget Reform Proposals

        14.           Budget Reform Proposals..................................................................................................          215

    Federal Borrowing and Debt

        15.           Federal Borrowing and Debt...............................................................................................          223

    [[Page ii]]

    Federal Receipts and Collections

        16.           Federal Receipts.........................................................................................................          239

        17.           User Charges and Other Collections.......................................................................................          271

        18.           Tax Expenditures.........................................................................................................          285

    Dimensions of the Budget

        19.           Comparison of Actual to Estimated Totals.................................................................................          329

        20.           Outlays to the Public, Net and Gross.....................................................................................          337

        21.           Trust Funds and Federal Funds............................................................................................          339

        22.           Off-Budget Federal Entities and Non-Budgetary Activities.................................................................          345

        23.           Federal Employment and Compensation......................................................................................          349

    Current Services Estimates

        24.           Current Services Estimates...............................................................................................          357

    The Budget System and Concepts

        25.           The Budget System and Concepts...........................................................................................          375

    Detailed Functional Table

        26.           Detailed Functional Table................................................................................................       CD-ROM

    Federal Programs by Agency and Account

        27.           Federal Programs by Agency and Account...................................................................................       CD-ROM

    Program Assessment Rating Tool (PART), Program Summaries

        28.           PART Summaries...........................................................................................................       CD-ROM

    [[Page iii]]

    ......................................................................

                            LIST OF CHARTS AND TABLES

    ......................................................................

    [[Page v]]

                            LIST OF CHARTS AND TABLES

                                 LIST OF CHARTS

                                                                       Page

       5-1.....  Federal R&D Spending...............................      47
       5-2.....  PART Assessments of 58 R&D Programs................      50
       5-3.....  Funding for Academic Earmarks......................      52
       7-1.....  Face Value of Federal Credit Outstanding...........      98
       12-1....  A Presentation of the Federal Government's              183
                  Financial Condition...............................
       12-2....  Net Federal Liabilities............................     189
       12-3....  Health Care Cost Alternatives......................     192
       12-4....  Alternative Discretionary Spending Assumptions.....     193
       12-5....  Alternative Productivity Assumptions...............     194
       12-6....  Alternative Fertility Assumptions..................     195
       12-7....  Alternative Mortality Assumptions..................     195
       12-8....  Alternative Immigration Assumptions................     196
       16-1....  Major Provisions of the Tax Code Under the 2001 and     240
                  2003 Tax Cuts.....................................
       19-1....  Illustrative Range of Budget Outcomes..............     335
       25-1....  Relationship of Budget Authority to Outlays for         386
                  2005..............................................

                                 LIST OF TABLES

                                                                      Page

    Performance and Management Assessments

      Budget and Performance Integration and the Program
       Assessment Rating Tool:
       2-1.....  The PART in Sections............................         10
       2-2.....  The PART Questionnaire..........................         11
       2-3.....  The PART, By Category...........................         12
       2-4.....  Program Assessment Rating Tool (PART)...........         13
    Crosscutting Programs

      Homeland Security Funding Analysis:
       3-1.....  Homeland Security Funding By Agency.............         26
       3-2.....  Homeland Security Funding By National Strategy           27
                  Mission Area...................................
       3-3.....  Intelligence and Warning Funding................         27
       3-4.....  Border and Transportation Security Funding......         28
       3-5.....  Domestic Counterterrorism Funding...............         30
       3-6.....  Protecting Critical Infrastructure and Key               31
                  Assets Funding.................................
       3-7.....  Defending Catastrophic Threats Funding..........         32
       3-8.....  Emergency Preparedness and Response Funding.....         33
       3-9.....  Estimates of Non-Federal Homeland Security               36
                  Expenditures...................................
       3-10....  Discretionary Fee-funded Homeland Security               36
                  Activities by Agency...........................
       3-11....  Mandatory Homeland Security Funding by Agency...         37
       3-12....  Baseline Estimates--Total Homeland Security              37
                  Funding by Agency..............................
       3-13....  Homeland Security Funding by Budget Function....         38
       3-14....  Baseline Estimates--Homeland Security Funding by         38
                  Budget Function................................
      Appendix.  Homeland Security Mission Funding by Agency and      CD-ROM
                  Budget Account.................................

    [[Page vi]]

      Strengthening Federal Statistics:
       4-1.....  2003-2005 Budget Authority for Principal                 46
                  Statistical Agencies...........................

      Research and Development:
       5-1.....  Permanent Extension of the Research and                  58
                  Experimentation Tax Credit.....................
       5-2.....  Federal Research and Development Spending.......         59
       5-3.....  Federal Science and Technology Budget...........         61
       5-4.....  Agency Detail of Selected Interagency R&D                62
                  Efforts........................................

      Federal Investment:
       6-1.....  Composition of Federal Investment Outlays.......         65
       6-2.....  Federal Investment Budget Authority and Outlays:         66
                  Grant and Direct Federal Programs..............
       6-3.....  Summary of PART Ratings and Scores for Direct            69
                  Federal Investment Programs....................
       6-4.....  Net Stock of Federally Financed Physical Capital         72
       6-5.....  Net Stock of Federally Financed Research and             73
                  Development....................................
       6-6.....  Net Stock of Federally Financed Education                74
                  Capital........................................

      Credit and Insurance:

          Text Tables:
                 Summary of PART Scores..........................         78
                 Growth of GSEs in the Last Decade...............         81
                 Capital Held by the GSEs and 10 of the Largest           84
                  U.S. Financial Institutions....................
       7-1.....  Estimated Future Cost of Outstanding Federal             99
                  Credit Programs................................
       7-2.....  Reestimates of Credit Subsidies on Loans                100
                  Disbursed Between 1992-2003....................
       7-3.....  Direct Loan Subsidy Rates, Budget Authority, and        102
                  Loan Levels, 2003-2005.........................
       7-4.....  Loan Guarantee Subsidy Rates, Budget Authority,         103
                  and Loan Levels 2003-2005......................
       7-5.....  Summary of Federal Direct Loans and Loan                104
                  Guarantees.....................................
       7-6.....  Direct Loan Write-Offs and Guaranteed Loan              105
                  Terminations for Defaults......................
       7-7.....  Appropriations Acts Limitations on Credit Loan          107
                  Levels.........................................
       7-8.....  Face Value of Government-Sponsored Enterprise           109
                  Lending........................................
       7-9.....  Lending and Borrowing By Government-Sponsored           110
                  Enterprises (GSEs).............................
       7-10....  Direct Loan Transactions of the Federal              CD-ROM
                  Government.....................................
       7-11....  Guaranteed Loan Transactions of the Federal          CD-ROM
                  Government.....................................

      Aid to State and Local Governments:
       8-1.....  Federal Grant Outlays by Agency.................        113
       8-2.....  Summary of PART Ratings and Scores for Grants to        119
                  State and Local Governments....................
       8-3.....  Trends in Federal Grants to State and Local             120
                  Governments....................................
       8-4.....  Federal Grants to State and Local Government's          123
                  Budget Authority and Outlays...................
       8-5.....  Summary of Programs by Agency, Bureau, and              131
                  Program........................................
       8-6.....  Summary of Programs by State....................        132
       8-7.....  National School Lunch Program...................        133
       8-8.....  Special Supplemental Nutrition Program for              134
                  Women, Infants, and Children...................
       8-9.....  State Administrative Matching Grants for Food           135
                  Stamp Program..................................
       8-10....  Title I Grants to Local Educational Agencies....        136
       8-11....  Special Education--Grants to States.............        137
       8-12....  Rehabilitation Services--Vocational                     138
                  Rehabilitation Grants to States................
       8-13....  State Children's Health Insurance Program.......        139
       8-14....  Grants to States for Medicaid...................        140
       8-15....  Temporary Assistance for Needy Families (TANF)--        141
                  Family Assistance Grants.......................
       8-16....  Child Support Enforcement--Federal Share of             142
                  State and Local Administrative Costs and
                  Incentives.....................................
       8-17....  Low Income Home Energy Assistance Program.......        143
       8-18....  Child Care and Development Block Grant..........        144
       8-19....  Child Care and Development Fund--Mandatory......        145

    [[Page vii]]

       8-20....  Child Care and Development Fund--Matching.......        146
       8-21....  Head Start......................................        147
       8-22....  Foster Care--Title IV-E.........................        148
       8-23....  Public Housing Operating Fund...................        149
       8-24....  Housing Choice Vouchers.........................        150
       8-25....  Public Housing Capital Fund.....................        151
       8-26....  Community Development Block Grants--Entitlement         152
                  Grants.........................................
       8-27....  Community Development Block Grants--State and           153
                  Small Cities Programs..........................
       8-28....  Airport Improvement Program.....................        154
       8-29....  Highway Planning and Construction...............        155
       8-30....  Federal Transit Capital Investment Grants (Fixed        156
                  Guideway Modernization)........................
       8-31....  Federal Transit Urbanized Area--Formula Grants          157
                  (Section 5307).................................
       8-32....  Federal Transit Formula and Research Grants.....        158

      Integrating Services with Information Technology:
       9-1.....  Effectiveness of Agency's IT Management and E-       CD-ROM
                  Gov Processes..................................
       9-2.....  Status of Presidential E-Government Initiatives.     CD-ROM

      Federal Drug Control Funding:
       10-1....  Federal Drug Control Funding, FY 2003-2005......        165
    Economic and Accounting Analyses

      Economic Assumptions and Analyses:
       11-1....  Economic Assumptions............................        173
       11-2....  Comparison of Economic Assumptions..............        175
       11-3....  Comparison of Economic Assumptions in the 2004          176
                  and 2005 Budgets...............................
       11-4....  Sources of Change in Budget Totals..............        177
       11-5....  Adjusted Structural Balance.....................        178
       11-6....  Sensitivity of the Budget to Economic                   180
                  Assumptions....................................
      Stewardship:

       12-1....  Government Assets and Liabilities...............        188
       12-2....  Long-Run Budget Projections of 2005 Budget              191
                  Policy.........................................
       12-3....  Actuarial Present Values Over a 75-Year                 199
                  Projection Period..............................
       12-4....  National Wealth.................................        201
       12-5....  Economic and Social Indicators..................        203

       National Income and Product Accounts:

       13-1....  Federal Transactions in the National Income and         209
                  Product Accounts, 2003-2005....................
       13-2....  Relationship of the Budget to the Federal               211
                  Sector, NIPAs..................................
       13-3....  Federal Receipts and Expenditures in the NIPAs,         212
                  Quarterly, 2003-2005...........................
    Budget Reform Proposals

      Budget Reform Proposals:
       14-1....  General Purpose Discretionary Caps and                  215
                  Adjustments....................................
       14-2....  Transportation Guarantee for Highways and Mass          216
                  Transit Spending...............................
       14-3....  PAYGO Proposals.................................        216
    Federal Borrowing and Debt

      Federal Borrowing and Debt:
       15-1....  Trends in Federal Debt Held by the Public.......        223
       15-2....  Federal Government Financing and Debt...........        225
       15-3....  Agency Debt.....................................        229
       15-4....  Debt Held by Government Accounts................        230
       15-5....  Federal Funds Financing and Change in Debt              233
                  Subject to Statutory Limit.....................
       15-6....  Foreign Holdings of Federal Debt................        235

    [[Page viii]]

    Federal Receipts and Collections

      Federal Receipts:
       16-1....  Receipts by Source-Summary......................        239
       16-2....  Effect on Receipts of Changes in the Social             230
                  Security Taxable Earnings Base.................
       16-3....  Effect of Proposals on Receipts.................        265
       16-4....  Receipts by Source..............................        269

      User Charges and Other Collections:
       17-1....  Gross Outlays, User Charges, Other Offsetting           271
                  Collections and Receipts from the Public, and
                  Net Outlays....................................
       17-2....  Total User Charge Collections...................        274
       17-3....  User Charge Proposals...........................        275
       17-4....  Offsetting Collections and Receipts from the            281
                  Public.........................................
       17-5....  Offsetting Receipts by Type.....................        282

      Tax Expenditures:
       18-1....  Estimates of Total Income Tax Expenditures......        287
       18-2....  Estimates of Tax Expenditures for the Corporate         290
                  and Individual Income Taxes....................
       18-3....  Income Tax Expenditures Ranked by Total 2005-           294
                  2009 Projected Revenue Effect..................
       18-4....  Present Value of Selected Tax Expenditures for          296
                  Activity in Calendar Year 2003.................
       18-5....  Outlay Equivalent Estimates for Tax Expenditures        296

        Appendix:

             1.  Comparison of Current Tax Expenditures with             324
                  Those Implied by a Comprehensive Income Tax....
          2....  Comparison of Current Tax Expenditures with             325
                  Those Implied by a Comprehensive Consumption
                  Tax............................................
          3....  Revised Tax Expenditure Estimates...............        325
    Dimensions of the Budget

       Comparison of Actual to Estimated Totals:.................
       19-1....  Comparison of Actual 2003 Receipts with the             329
                  Initial Current Services Estimates.............
       19-2....  Comparison of Actual 2003 Outlays with the              330
                  Initial Current Services Estimates.............
       19-3....  Comparison of the Actual 2003 Deficit with the          331
                  Initial Current Services Estimate..............
       19-4....  Comparison of Actual and Estimated Outlays for          332
                  Mandatory and Related Programs Under Current
                  Law............................................
       19-5....  Reconciliation of Final Amounts for 2003........        333
       19-6....  Comparison of Actual and Estimated Surpluses or         334
                  Deficits Since 1982............................
       19-7....  Differences Between Estimated and Actual                335
                  Surpluses or Deficits for Five-year Budget
                  Estimates Since 1982...........................

      Outlays to Public, Net and Gross:
       20-1....  Total Outlays, Net and Gross of Offsetting              337
                  Collections and Receipts from the Public, by
                  Agency, 2003-2005..............................
       Trust Funds and Federal Funds:.......................................
       21-1....  Receipts, Outlays, and Surplus or Deficit by            339
                  Fund Group.....................................
       21-2....  Income, Outgo, and Balances of Trust Funds Group        341
       21-3....  Relationship of Total Federal Fund and Trust            342
                  Fund Receipts to Unified Budget Receipts,
                  Fiscal Year 2003...............................
       21-4....  Income, Outgo, and Balances of Major Trust Funds     CD-ROM
       21-5....  Income, Outgo, and Balances of Selected Federal      CD-ROM
                  Funds..........................................

      Off-Budget Federal Entities and Non-Budgetary Activities:
       22-1....  Comparison of Total, On-Budget, and Off-Budget          345
                  Transactions...................................

      Federal Employment and Compensation:
       23-1....  Federal Employment in the Executive Branch......        350
       23-2....  Total Federal Employment (Total Positions               351
                  Filled)........................................

    [[Page ix]]

       23-3....  Total Federal Employment (Full-Time Equivalents)        352
       23-4....  Personnel Compensation and Benefits.............        353
    Current Service Estimates

      Current Service Estimates:
       24-1....  Baseline Category Totals........................        357
       24-2....  Alternative Baseline Assumptions................        359
       24-3....  Summary of Economic Assumptions.................        360
       24-4....  Beneficiary Projections for Major Benefit               361
                  Programs.......................................
       24-5....  Impact of Regulations, Expiring Authorizations,         362
                  and Other Assumptions in the Baseline..........
       24-6....  Baseline Receipts by Source.....................        366
       24-7....  Change in Baseline Outlay Estimates by Category.        367
       24-8....  Current Services Outlays by Function............        368
       24-9....  Current Services Outlays by Agency..............        369
       24-10...  Current Services Budget Authority by Function...        370
       24-11...  Current Services Budget Authority by Agency.....        371
       24-12...  Current Services Budget Authority by Function,       CD-ROM
                  Category and Program...........................
       24-13...  Current Services Outlays by Function, Category       CD-ROM
                  and Program....................................

    Budget System and Concepts and Glossary

      The Budget System and Concepts:
       25-1....  Totals for the Budget and the Federal Government        379

    Detailed Functional Tables

      Detailed Functional Tables:

       26-1....  Budget Authority and Outlays by Function,            CD-ROM
                  Category and Program...........................

    Federal Programs by Agency and Account

      Federal Programs by Agency and Account:

       27-1....  The Budget for Fiscal Year 2005 by Agency and        CD-ROM
                  Account........................................

    Program Rating Assessment Tool (PART), Program Summaries

      PART Summaries:

       ........  PART Summary File...............................     CD-ROM
       ........  PART Data File--Funding, Scores, and Ratings....     CD-ROM