[Analytical Perspectives]
[Economic Assumptions and Analyses]
[13. National Income and Product Accounts]
[From the U.S. Government Printing Office, www.gpo.gov]


[[Page 207]]

 
                13. NATIONAL INCOME AND PRODUCT ACCOUNTS

  The National Income and Product Accounts (NIPAs) are an integrated set 
of measures of aggregate U.S. economic activity that are prepared by the 
Department of Commerce. Because the NIPAs include Federal transactions 
and are widely used in economic analysis, it is important to show the 
NIPAs' distinctive presentation of Federal transactions and contrast it 
with that of the budget.
  One of the main purposes of the NIPAs 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. Both government consumption expenditures and government 
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--social benefits, grants to State and 
local governments, subsidies, and 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 current receipts and 
current expenditure account, together with Government consumption 
expenditures (which includes depreciation on Government gross 
investment).
  Federal transactions are included in the NIPAs as part of the 
government sector. \1\ The Federal subsector 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 subsector is not itself a budget, 
because it is not a financial plan for proposing, determining, and 
controlling the fiscal activities of the Government. Also, it covers 
current transactions only, whereas the budget includes transactions that 
the NIPA current account omits from its current receipts and current 
expenditure totals as ``capital transfers.'' NIPA concepts also differ 
in many other ways from budget concepts, and therefore the NIPA 
presentation of Federal finances is significantly different from that of 
the budget.
---------------------------------------------------------------------------
  \1\ The other subsector of the NIPA government sector is a single set 
of transactions for all U.S. State and local units of government, 
treated as a consolidated entity.
---------------------------------------------------------------------------

              Differences Between the NIPAs and the Budget

  Federal transactions in the NIPAs are measured according to NIPA 
accounting concepts in order to be compatible with the purposes of the 
NIPAs and other transactions recorded in the NIPAs. As a result they 
differ from the budget in netting, timing, and coverage. These 
differences cause current receipts and expenditures in the NIPAs to 
differ from total receipts and outlays in the budget, albeit by 
relatively small amounts. \2\ Differences in timing and coverage also 
cause the NIPA net Federal Government saving to differ from the budget 
surplus or deficit. Netting differences have equal effects on receipts 
and expenditures and thus have no effect on net Government saving. 
Besides these differences, the NIPAs combine transactions into different 
categories from those used in the budget.
---------------------------------------------------------------------------
  \2\ Over the period 1994-2003, NIPA current expenditures averaged four 
percent higher than budget outlays, while NIPA current receipts averaged 
two percent higher than budget receipts.
---------------------------------------------------------------------------
  December 2003 NIPA Revisions.--Comprehensive revisions to the NIPAs 
introduced in December 2003 significantly changed the way Federal 
transactions are measured in the NIPAs, and the ways in which the NIPAs 
differ from the budget. The three most important changes were: 1) 
reclassification of nontaxes out of current tax receipts into current 
transfer receipts from persons and from business (net); 2) switching 
several items formerly netted against expenditures to current receipts: 
interest and dividends received by Government, the current surplus of 
Government enterprises, and tax receipts from the rest of the world 
(formerly netted against transfer payments to the rest of the world); 3) 
a new receipts category called ``income receipts on assets'' now 
includes such items as Outer Continental Shelf oil and gas royalties. 
The categories into which Government current expenditures and current 
receipts are broken down in the NIPAs are now significantly different 
from those used in the past. Terminology has changed also; most notably, 
government surpluses or deficits are now referred to as net government 
saving. The effects of these changes are reflected in this chapter.
  Netting differences arise when the budget records certain transactions 
as offsets to outlays while they are recorded as current receipts in the 
NIPAs (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 NIPAs often follow this concept as well, and income to 
Government enterprises such as the Postal Service or the power 
administrations is offset against their expenditures--but the NIPAs now 
treat the net surplus of Government enterprises as a component of 
current receipts. However, the NIPAs have a narrower definition of 
``business-type transactions''. Two classes of receipts, rents and 
royalties, and regulatory or inspection fees, both of which are 
classified as offsets to outlays in the budget, are recorded in the 
NIPAs

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as Government receipts (income receipts on assets and current transfer 
receipts, respectively). The NIPAs 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 so that total outlays and receipts measure transactions with the 
public. Government contributions for Federal employee social insurance 
(such as social security) is an example: the budget offsets these 
payments against outlays. In contrast, the NIPAs 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 NIPAs 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 NIPAs 
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 NIPAs 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. Thus the NIPAs attribute 
corporations' final settlement payments back to the quarter(s) in which 
the profits that gave rise to the tax liability occurred. The delay 
between accrual of liability and Treasury receipt of payment can result 
in significant timing differences between NIPA and budget measures of 
receipts for any given accounting period.
  Timing differences also occur for expenditures. When the first of a 
month falls on a weekend or holiday, 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, giving rise to a timing difference compared to the 
budget.
  Coverage differences also differentiate the budget and the NIPAs. The 
NIPA Federal subsector is a current account and excludes capital 
transfers unrelated to current economic production, which are included 
in the budget. Federal investment grants to State and local governments, 
investment subsidies to business, and forgiveness of debt owed by 
foreign governments are included as outlays in the budget but are 
excluded from NIPA current expenditures as being capital transfers. 
Likewise, estate and gift taxes, included in budget receipts, are 
excluded from NIPA current receipts as being capital transfers. Also 
unlike the budget, the NIPAs exclude transactions with U.S. territories. 
They 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 NIPAs these 
transactions are excluded as an exchange of assets with no current 
production involved.
  A 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 that capital renders; 
i.e., for its contribution to Government output of public services.
  The treatment of Government pension plan income and outgo creates a 
coverage difference. Whereas the budget treats employee payments to 
these pension plans as governmental receipts, and employer contributions 
by agencies as offsets to outlays because they are intragovernmental, 
the NIPAs 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 an outlay, but 
under NIPA concepts, no Government expenditure occurs at that time; the 
payment is treated (like private pension payments) as a transfer of 
income within the household sector.
  Financial transactions such as loan disbursements, loan repayments, 
loan asset sales, and loan guarantees are excluded from the NIPAs on the 
grounds that such transactions simply involve an exchange of assets 
rather than current production, income, or consumption. In contrast, 
under the Federal Credit Reform Act of 1990, 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 NIPAs, neither the subsidies 
nor the loan transactions are included. However, the NIPAs, like the 
budget, include all interest transactions with the public, including 
interest received and paid to the loan financing accounts.

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  Deposit insurance outlays for resolving failed banks and thrift 
institutions are similarly excluded from the NIPAs on the grounds that 
there are no offsetting current income flows from these transactions. In 
1991, this exclusion was the largest difference between the NIPAs and 
the budget and made NIPA net Government saving a significantly smaller 
negative number than the budget deficit that year. In subsequent years, 
as assets acquired from failed financial institutions were sold, these 
collections tended to make the budget deficit a smaller negative figure 
than NIPA net Federal Government saving.

            Table 13-1.  FEDERAL TRANSACTIONS IN THE NATIONAL INCOME AND PRODUCT ACCOUNTS, 2003-2005
                                            (In billions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                                               Estimate
                              Description                                Actual 2003 ---------------------------
                                                                                          2004          2005
----------------------------------------------------------------------------------------------------------------
                           CURRENT RECEIPTS
Current tax receipts..................................................     1,029.8       1,009.2       1,210.1
  Personal current taxes..............................................       781.7         721.0         850.4
  Taxes on production and imports.....................................        90.3          97.4          97.0
  Taxes on corporate income...........................................       151.0         184.1         256.0
  Taxes from the rest of the world....................................         6.8           6.7           6.7
Contributions for Government social insurance.........................       749.8         788.0         846.7
Income receipts on assets.............................................        21.4          23.6          24.0
Current transfer receipts.............................................        26.3          27.7          30.0
Current surplus of Government enterprises.............................         2.9          -0.6          -1.4
                                                                       -----------------------------------------
      Total current receipts..........................................     1,830.2       1,847.9       2,109.5
                                                                       =========================================
                         CURRENT EXPENDITURES
 
Consumption expenditures..............................................       640.3         706.1         712.3
  Defense.............................................................       424.8         471.2         459.8
  Nondefense..........................................................       215.5         234.9         252.4
Current transfer payments.............................................     1,310.5       1,398.8       1,447.2
  Government social benefits..........................................       955.7       1,010.1       1,060.1
  Grants-in-aid to State and local governments........................       333.3         360.6         356.5
  To the rest of the world............................................        21.5          28.1          30.6
Interest payments.....................................................       217.8         218.5         243.8
Subsidies.............................................................        49.3          44.0          44.2
Wage disbursements less accruals......................................  ............  ............  ............
                                                                       -----------------------------------------
      Total current expenditures......................................     2,218.0       2,367.4       2,447.4
                                                                       =========================================
      Net Federal Government saving...................................      -387.8        -519.5        -338.0
 
                               ADDENDUM
 
Capital transfer payments (net).......................................       -23.2         -23.4         -26.7
Gross Government investment:
  Defense.............................................................        58.6          63.8          67.0
  Nondefense..........................................................        37.0          40.8          43.2
----------------------------------------------------------------------------------------------------------------
* $50 million or less.

                     Federal Sector Current Receipts

  Table 13-1 shows Federal current receipts in the five major categories 
and four of the subcategories now used in the NIPAs, which are similar 
to the budget categories but with significant differences.
  Current tax receipts is the largest major category of current 
receipts, and its personal current taxes subcategory-- composed 
primarily of the individual income tax--is the largest single 
subcategory. The NIPAs' taxes on corporate income subcategory differs in 
classification from the corresponding budget category primarily because 
the NIPAs 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 NIPAs and the 
budget is especially large for corporate receipts.) The taxes on 
production and imports subcategory is composed of excise taxes and 
customs duties.
  Contributions for Government social insurance is the second largest 
major category of current receipts. It differs from the corresponding 
budget category primarily because: (1) the NIPAs 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 NIPAs include premiums for 
Part B of Medicare as governmental receipts, while the budget nets them 
against outlays; (3) the NIPAs treat Government employee contributions 
to their pension plans as personal income, while the budget includes 
them in govern

[[Page 210]]

mental receipts; and (4) the NIPAs impute employer contributions for 
Federal employees' unemployment insurance and workers' compensation.
  The income receipts on assets category consists mainly of interest 
payments received on Government direct loans (such as student loans) and 
rents and royalties on Outer Continental Shelf oil leases. The current 
transfer receipts category consists primarily of deposit insurance 
premiums, fees, fines and other receipts from both individuals and 
businesses--virtually all of which are netted against outlays in the 
budget. The current surplus (or deficit) of Government enterprises 
category was formerly netted against subsidies on the expenditure side 
of the accounts. This is the profit or loss 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.

                   Federal Sector Current Expenditures

  Table 13-1 shows current expenditures in five major NIPA categories 
and five subcategories, which are also 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 13-1) is thus excluded from current expenditures 
in computing net Government saving on a NIPA basis, whereas 
depreciation--charges on federally owned fixed capital--(``consumption 
of general government fixed capital'') is included. The NIPAs 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 transfer payments) 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 NIPAs similar to 
that of the private sector. Investment includes structures, equipment, 
and computer software.
  Current transfer payments is the largest expenditure category. 
Transfer payments for Government social benefits consist mainly of 
income security and health programs, such as Social Security and 
Medicare paid to U.S. residents--and to retirees living outside the U.S. 
Payment of pension benefits to former Government employees is not 
included, as explained previously. Grants-in-aid to State and local 
governments help finance a range of programs, including income security, 
Medicaid, and education (but capital transfer payments for construction 
of highways, airports, waste-water treatment plants, and mass transit 
are excluded). ``Current transfer payments to the rest of the world 
(net) consists mainly of grants to foreign governments.
  Interest payments 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). Where the budget nets interest 
received on loans against outlays, the NIPAs now treat it as current 
receipts.
  Subsidies consist of subsidy payments for resident businesses 
(excluding subsidies for investment). 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 NIPAs 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

  From the introduction of the unified budget in January 1968 until the 
early 1990s, NIPA receipts were less than budget receipts in most years. 
This was due principally to the fact that estate and gift taxes, which 
they exclude as capital transfers, 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 capital transfer grants and pension 
benefit payments to former Government employees.
  Two components of budget outlays, however, are sometimes sufficiently 
large in combination to exceed the netting adjustments. These are 
financial transactions and net investment (the difference between gross 
investment and depreciation). 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 NIPAs, 
although, unlike the NIPAs, credit subsidies are recorded as budget 
outlays.

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                      Table 13-2.  RELATIONSHIP OF THE BUDGET TO THE FEDERAL SECTOR, NIPAs
----------------------------------------------------------------------------------------------------------------
                                                                                               Estimate
                                                                         Actual 2003 ---------------------------
                                                                                          2004          2005
----------------------------------------------------------------------------------------------------------------
 
------------------------------- RECEIPTS------------------------------------------------------------------------
 
Budget receipts.......................................................     1,782.3       1,798.1       2,036.3
  Contributions to Government employee retirement plans...............        -4.6          -4.7          -4.7
  Capital transfers received..........................................       -21.8         -23.8         -21.3
  Other coverage differences..........................................        -9.8         -10.8         -10.9
  Netting and grossing................................................        86.1          91.6          98.4
  Timing differences..................................................        -2.0          -2.6          11.8
                                                                       -----------------------------------------
    NIPA current receipts.............................................     1,830.2       1,847.9       2,109.5
                                                                       =========================================
                             EXPENDITURES
 
Budget outlays........................................................     2,157.6       2,318.8       2,399.8
  Government employee retirement plan transactions....................        29.3          31.8          31.5
  Deposit insurance and other financial transactions..................        16.8           7.9          15.2
  Capital transfer payments...........................................       -45.0         -47.2         -48.0
  Net purchases of nonproduced assets.................................        -0.1          -0.1          -0.1
  Net investment......................................................        -5.2         -11.7         -14.4
  Other coverage differences..........................................       -20.1         -27.6         -37.1
  Netting and grossing differences....................................        86.1          91.6          98.4
  Timing differences..................................................        -1.6           3.8           2.0
                                                                       -----------------------------------------
    NIPA current expenditures.........................................     2,218.0       2,367.4       2,447.4
 
                                                                       =========================================
                               ADDENDUM
 
  Budget deficit (-)..................................................      -375.3        -520.7        -363.6
  NIPA net Federal Government saving..................................      -387.8        -519.5        -338.0
----------------------------------------------------------------------------------------------------------------
* $50 million or less.

  During the period 1975-1992, the budget deficit was a larger negative 
number than net Federal Government saving as measured in the NIPAs' 
seasonally adjusted data every year except 1987. The largest difference, 
$72.9 billion, occurred in 1991 as a result of resolving failed 
financial institutions as discussed above; the budget deficit was then 
-$269.3 billion, while the NIPA net Government saving was -$196.5 
billion. In 1993-2003, the NIPA net Federal Government saving were 
larger negative numbers than the budget deficit or lower positive 
numbers than the budget surplus each year. For 2004 and 2005, the NIPA 
net Federal Government saving are projected to be smaller negative 
numbers than the budget deficit.
  Table 13-1 displays Federal transactions using NIPA concepts with 
actual data for the 2003 and estimates for 2004 and 2005 consistent with 
the Administration's budget proposals. Table 13-2 summarizes the reasons 
for differences between the data. Table 13-3 displays quarterly data 
using NIPA concepts beginning in October 2002. Annual NIPA data for 
2003-2005 are published in Section 14 of a separate budget volume, 
Historical Tables, Budget of the U.S. Government, Fiscal Year 2005.
  Detailed estimates of NIPA current receipts and expenditures will be 
published in a forthcoming issue of the Department of Commerce 
publication, Survey of Current Business and on the Bureau of Economic 
Analysis website at http://www.bea.doc.gov/bea/pubs.htm.

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                                                       Table 13-3.  FEDERAL RECEIPTS AND EXPENDITURES IN THE NIPA's, QUARTERLY, 2003-2005
                                                                  (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.
                                                                                              -----------                                 -----------                                 ----------
                                                                 2002       2003       2003       2003       2003       2004       2004       2004       2004       2005       2005       2005
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                      CURRENT RECEIPTS
Current tax receipts........................................   1,072.7    1,060.3    1,057.1      972.1                 978.1    1,008.6    1,042.4    1,080.4    1,186.3    1,222.7    1,256.6
  Personal current taxes....................................     815.4      794.3      794.6      696.3                 681.5      695.3      712.9      734.2      813.4      836.3      857.8
  Taxes on production and imports...........................      89.0       88.3       87.7       86.3                  93.7       97.5       98.1       94.7       93.9       94.9       95.7
  Taxes on corporate income.................................     161.7      171.0      167.9      182.8                 196.3      209.1      224.7      244.9      272.3      284.8      296.4
  Taxes from the rest of the world..........................       6.7        6.8        6.9        6.7                   6.7        6.7        6.7        6.7        6.7        6.7        6.7
Contributions for Government social insurance...............     741.9      755.1      758.5      763.1                 791.6      802.4      815.1      824.5      844.0      854.6      864.4
Income receipts on assets...................................      22.0       22.5       23.6       24.9                  25.6       25.7       25.5       25.5       25.8       26.1       26.5
Current transfer receipts...................................      25.4       26.0       26.3       26.9                  27.6       28.1       28.7       29.5       30.0       30.5       30.8
Current surplus of Government enterprises...................      -2.3       -0.4       -1.6       -2.5                  -5.7       -5.7       -5.7       -5.7       -6.1       -6.2       -6.1
                                                             -----------------------------------------------------------------------------------------------------------------------------------
      Total current receipts................................   1,859.7    1,863.5    1,863.9    1,784.3               1,817.2    1,859.1    1,906.1    1,954.2    2,080.1    2,127.6    2,172.2
                                                             ===================================================================================================================================
                    CURRENT EXPENDITURES
 
Consumption expenditures....................................     620.7      635.9      668.9      672.3                 711.4      723.5      730.2      728.0      724.5      721.2      719.5
  Defense...................................................     404.6      408.6      447.5      443.7                 468.2      475.2      477.6      471.0      462.8      457.3      454.2
  Nondefense................................................     216.1      227.3      221.4      228.5                 243.2      248.3      252.6      257.1      261.7      263.9      265.3
Current transfer payments...................................   1,270.8    1,287.3    1,339.5    1,348.9               1,392.7    1,404.7    1,424.8    1,433.9    1,457.8    1,452.2    1,452.3
  Government social benefits................................     935.4      951.5      969.7      979.7               1,012.3    1,025.1    1,037.4    1,048.9    1,065.4    1,070.6    1,075.4
  Grants-in-aid to State and local governments..............     316.4      310.8      345.5      346.3                 343.7      352.9      360.4      355.4      353.2      352.4      347.2
  To the rest of the world..................................      19.1       25.1       24.3       22.9                  36.8       26.7       27.1       29.5       39.2       29.3       29.7
Interest payments...........................................     227.6      217.7      222.5      215.6                 218.5      222.1      227.3      235.5      242.7      250.1      257.6
Subsidies...................................................      37.0       44.5       56.3       47.0                  41.9       40.0       37.8       38.3       40.3       42.3       43.5
Wage disbursements less accruals............................  .........      -1.4        1.4   .........             .........  .........  .........  .........  .........  .........  .........
                                                             -----------------------------------------------------------------------------------------------------------------------------------
      Total current expenditures............................   2,156.1    2,184.0    2,288.5    2,283.7               2,364.4    2,390.2    2,420.3    2,435.7    2,465.3    2,465.9    2,472.9
                                                             ===================================================================================================================================
      Net Federal Government saving.........................    -296.3     -320.4     -424.7     -499.4                -547.3     -531.1     -514.2     -481.5     -385.3     -338.2     -300.7
 
                          ADDENDUM
 
Capital transfer payments (net).............................     -19.8      -13.8      -28.4      -29.6                 -22.9      -23.9      -23.5      -24.8      -25.7      -26.1      -26.5
Gross Government investment:
  Defense...................................................      56.6       54.7       59.8       63.5                  65.6       65.5       62.4       66.6       67.2       65.9       68.5
  Nondefense................................................      32.7       32.4       36.0       33.8                  34.3       34.7       35.1       35.4       36.3       37.4       38.7
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Department of Commerce advance estimates for the Oct.-Dec. quarter, released January 30, 2004, were not available in time for inclusion in this table.
* $50 million or less.


[[Page 213]]

                                     

                                     



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                         BUDGET REFORM PROPOSALS

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