    [Analytical Perspectives]
    [Dimensions of the Budget]
    [21. Outlays to the Public, Net and Gross]
    [From the U.S. Government Printing Office, www.gpo.gov]

    [[Page 369]]

                    21.  OUTLAYS TO THE PUBLIC, NET AND GROSS

      Table 21-1 shows net and gross outlays, and the relationship between
    them, for all major agencies. Outlays are the measure of Government
    spending. The budget records outlays when the Government makes payment
    for such things as Federal employee salaries, the purchase of supplies
    and equipment, grants to state and local government, and benefits to
    individuals. The Government's gross outlays are the sum of all these
    payments.
      The outlay totals in the budget, however, whether for the Government
    as a whole or for agencies, programs, and functions (such as national
    defense), are net outlays, unless otherwise specified. Gross outlays, as
    the table shows, equal the net outlays plus offsetting receipts and
    collections from the public. Offsetting receipts and collections
    constitute the income the Government receives from its business-like
    enterprises and other market activities with the public, such as the
    proceeds from selling postage stamps, the fees charged for admittance to
    recreational areas, and the proceeds from selling land or natural
    resources. The budget refers to them as ``offsetting,'' because they are
    subtracted from gross outlays rather than added to taxes and other
    collections from the public resulting from the exercise of the
    Government's sovereign or governmental powers to levy or impose taxes,
    fees, fines, and the like. The table shows that offsetting receipts and
    collections are relatively much more important for some agencies than
    for others.
      The budget focuses on net outlay totals in order to show outlays and
    receipts that measure governmental activity rather than a combination of
    governmental and market activity. As a result, the budget totals
    represent the amount of resources allocated and distributed by political
    decision making rather than by private choice and the market mechanism.
    The surplus or deficit is calculated by subtracting total outlays from
    total receipts. It would be exactly the same if offsetting collections
    and receipts were to be included in total receipts and not subtracted
    from gross outlays.
      In this table, negative net outlays occur when collections exceed
    payments. The amounts for ``Allowances'' cover certain transactions that
    are expected to increase or decrease outlays but are not, for various
    reasons, attributed to any specific agency. The amounts labeled
    ``undistributed offsetting receipts'' are deducted from the Government-
    wide outlay totals but not from any specific agency. Offsetting
    collections and receipts are discussed in more detail in chapter 18 of
    this volume, ``User Charges and Other Collections,'' and chapter 26,
    ``The Budget System and Concepts.''

                     Table 21-1.  TOTAL OUTLAYS, NET AND GROSS OF OFFSETTING COLLECTIONS AND RECEIPTS FROM THE PUBLIC, BY AGENCY, 2004-2006
                                                                    (In millions of dollars)
    --------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            2004                                  2005                                  2006
                                           -----------------------------------------------------------------------------------------------------------------
                                                                       Outlays                               Outlays                               Outlays
                                                         Offsetting    Gross of                Offsetting    Gross of                Offsetting    Gross of
           Department or Other Unit                     Collections  Collections              Collections  Collections              Collections  Collections
                                                Net         and          and          Net         and          and          Net         and          and
                                              Outlays     Receipts     Receipts     Outlays     Receipts     Receipts     Outlays     Receipts     Receipts
                                                          from the     from the                 from the     from the                 from the     from the
                                                           Public       Public                   Public       Public                   Public       Public
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    Legislative Branch....................       3,885           74        3,959       4,083           64        4,147       4,356           66        4,422
    Judicial Branch.......................       5,392           38        5,430       5,741           44        5,785       6,145           48        6,193
    Executive Branch
      Department of Agriculture...........      71,769       19,474       91,243      94,912       23,753      118,665      94,590       22,103      116,693
      Department of Commerce..............       5,850        2,177        8,027       6,278        1,781        8,059       6,500        1,912        8,412
      Department of Defense--Military.....     437,116       11,492      448,608     444,068       11,511      455,579     426,315       11,643      437,958
      Department of Education.............      62,816          961       63,777      70,953        1,394       72,347      64,272        2,123       66,395
      Department of Energy................      19,972        5,770       25,742      22,178        6,649       28,827      21,969        6,554       28,523
      Department of Health and Human           543,389       34,789      578,178     585,772       40,350      626,122     643,886       57,937      701,823
       Services...........................
      Department of Homeland Security.....      26,537        7,351       33,888      33,259        8,790       42,049      33,284       11,044       44,328
      Department of Housing and Urban           45,019        2,596       47,615      42,614        1,699       44,313      40,185        1,385       41,570
       Development........................
      Department of the Interior..........       8,914        4,654       13,568       9,433        6,726       16,159       9,812        6,401       16,213
      Department of Justice...............      28,954          834       29,788      21,171          747       21,918      23,380          923       24,303
      Department of Labor.................      56,706        2,291       58,997      50,034        4,063       54,097      51,713        7,548       59,261
      Department of State.................      10,934        2,199       13,133      11,934          938       12,872      14,109        1,051       15,160
      Department of Transportation........      54,547          440       54,987      58,215          316       58,531      60,585          176       60,761
      Department of the Treasury..........     374,817       16,233      391,050     402,972       17,233      420,205     441,198       17,721      458,919
      Department of Veterans Affairs......      59,554        6,110       65,664      68,046        5,280       73,326      68,281        4,769       73,050
      Corps of Engineers-Civil Works......       4,838        1,257        6,095       4,891        1,001        5,892       4,643        1,215        5,858
      Other Defense Civil Programs........      41,730           38       41,768      43,460           19       43,479      44,489           21       44,510

    [[Page 370]]

      Environmental Protection Agency.....       8,334          223        8,557       7,862          124        7,986       8,202          170        8,372
      Executive Office of the President...       3,308  ...........        3,308       5,765  ...........        5,765       7,192  ...........        7,192
      General Services Administration.....        -403          286         -117         459          288          747          54          280          334
      International Assistance Programs...      13,737       13,367       27,104      14,754       12,676       27,430      17,022       12,085       29,107
      National Aeronautics and Space            15,189          -19       15,170      15,719          119       15,838      15,744           79       15,823
       Administration.....................
      National Science Foundation.........       5,118  ...........        5,118       5,641  ...........        5,641       5,666  ...........        5,666
      Office of Personnel Management......      56,535        9,738       66,273      60,964       10,661       71,625      64,259       11,439       75,698
      Small Business Administration.......       4,075          336        4,411       3,036          615        3,651         790           56          846
      Social Security Administration......     530,205        6,879      537,084     559,048        7,072      566,120     583,492        7,394      590,886
      Export-Import Bank of the United          -1,903        2,640          737        -376        1,271          895         183          271          454
       States.............................
      Federal Deposit Insurance                 -1,555          763         -792         214          666          880        -395          908          513
       Corporation........................
      Postal Service......................      -4,070       68,001       63,931        -442       67,538       67,096       4,125       67,628       71,753
      Railroad Retirement Board...........       2,569        3,005        5,574       4,079        1,825        5,904       4,967        1,223        6,190
      Other Independent Agencies..........      10,863       20,498       31,361      16,196       11,868       28,064      13,727       12,359       26,086
    Allowances............................  ..........  ...........  ...........      34,899  ...........       34,899      24,168  ...........       24,168
    Undistributed Offsetting Receipts.....    -212,526        5,106     -207,420    -228,428        5,986     -222,442    -241,291        7,231     -234,060
                                           -----------------------------------------------------------------------------------------------------------------
    Totals:...............................   2,292,215      249,601    2,541,816   2,479,404      253,067    2,732,471   2,567,617      275,763    2,843,380
    --------------------------------------------------------------------------------------------------------------------------------------------------------