[Analytical Perspectives]
[Introduction]
[1. Introduction]
[From the U.S. Government Printing Office, www.gpo.gov]


                         Purpose of This Volume

  The Analytical Perspectives volume presents analyses that highlight 
specific subject areas or provide other significant data that place the 
budget in context. The volume presents crosscutting analyses of 
Government programs and activities from several perspectives.
  Presidential budgets have included separate analytical presentations 
of this kind for many years. The 1947 Budget and subsequent budgets 
included a separate section entitled ``Special Analyses and Tables'' 
that covered four or more topics. For the 1952 Budget, this section was 
expanded to ten analyses, including many subjects still covered today, 
such as receipts, investment, credit programs, and aid to State and 
local governments. With the 1967 Budget this material became a separate 
volume entitled ``Special Analyses,'' and included 13 chapters. The 
material has remained a separate volume since then, with the exception 
of the budgets for 1991-1994, when all of the budget material was 
included in one large volume. Beginning with the 1995 Budget, the volume 
has been named Analytical Perspectives.
  The volume this year continues to reflect an interest in publishing 
more information on program performance, so that Executive agencies, the 
Congress, and the public will become increasingly informed about how 
well programs are performing. Better performance information can help 
managers improve program effectiveness, and can help Executive and 
Congressional policymakers improve the allocation of public resources. 
The performance assessment information is summarized in Chapter 2, 
``Performance and Management Assessments,'' and is discussed in many 
other chapters, especially those in the section, ``Crosscutting 
Programs.'' One-page summaries of each program are on the Analytical 
Perspectives CD ROM (inside back cover).
  The volume includes a new chapter this year on the California Bay-
Delta restoration program (Chapter 11).
  Again this year, several large tables are included as part of the 
Budget on the enclosed Analytical Perspectives CD ROM, along with 
evaluations and analyses of programs and management at Federal 
departments and agencies. A list of the items on the CD ROM is in the 
Table of Contents of this volume.

                        Overview of the Chapters

Introduction

  1. Introduction. This chapter discusses each chapter briefly and 
highlights the emphasis on performance in a crosscutting context.

Performance and Management Assessments

  2. Budget and Performance Integration. This chapter summarizes this 
year's performance and management assessments, based primarily on the 
Program Assessment Rating Tool (PART). The enclosed Analytical 
Perspectives CD ROM includes one-page summaries of the program 
evaluations. Additional details of each of the assessments can be found 
on the OMB web page under ``Budget Documents'' at http://www.budget.gov/
budget/.

Crosscutting Programs

  3. Homeland Security Analysis. This chapter discusses homeland 
security funding and provides information on homeland security program 
requirements, performance, and priorities. Additional detailed 
information is available on the enclosed Analytical Perspectives CD ROM.
  4. Strengthening Federal Statistics. This chapter discusses the 
development of standards that principal statistical programs can use to 
assess their performance and presents highlights of their 2006 Budget 
proposals.
  5. Research and Development. This chapter presents a crosscutting 
review of research and development funding in the budget, including 
discussions about priorities, performance, and coordination across 
agencies.
  6. Federal Investment. This chapter discusses spending across Federal 
agencies that yields long-term benefits, and presents information on 
physical capital, research and development, and education and training. 
The chapter includes material on the PART assessments related to direct 
Federal investment spending. There is also a section on capital stocks.
  7. Credit and Insurance. This chapter provides crosscutting analyses 
of the roles and risks of Federal credit and insurance programs and 
Government-sponsored enterprises (GSEs), as well as criteria for 
evaluation. It covers the categories of Federal credit (housing, 
education, business including farm operations, and international) and 
insurance programs (deposit insurance, pension guarantees, disaster 
insurance, and insurance against security-related risks). Two detailed 
tables, ``Table 7-10. Direct Loan Transactions of the Federal 
Government'' and ``Table 7-11. Guaranteed Loan Transactions of the 
Federal Government'', are on the enclosed Analytical Perspectives CD 
ROM.
  8. Aid to State and Local Governments. This discussion presents 
crosscutting information on Federal grants to State and local 
governments, including highlights of Administration proposals. The 
chapter also includes material on the PART assessments related to 
grants. An Appendix to this chapter includes State-by-State spending 
estimates of major grant programs.

[[Page 4]]

  9. Integrating Services with Information Technology. This chapter 
presents a crosscutting look at investments in information technology 
(IT). The chapter describes various aspects of the Administration's 
information technology agenda, with special emphasis on the performance, 
efficiency, and effectiveness of the Government's IT investments. Three 
detailed tables, ``Table 9-1. Effectiveness of Agency's IT Management 
and E-Gov Processes,'' ``Table 9-2. Management Guidance,'' and ``Table 
9-3. Status of Presidential E-Government Initiatives,'' are on the 
enclosed Analytical Perspectives CD ROM.
  10. Federal Drug Control Funding by Agency. This section presents 
estimated drug control funding for Federal departments and agencies.
  11. California-Federal Bay-Delta Program Budget Crosscut (CALFED). 
This chapter presents information on Federal funding for the California 
Bay-Delta restoration program, in partial fulfillment of the reporting 
requirements for this program. A detailed table, ``CALFED-Related 
Federal Funding'' is on the enclosed Analytical Perspectives CD ROM.

Economic Assumptions and Analyses

  12. Economic Assumptions. This discussion reviews recent economic 
developments; presents the Administration's assessment of the economic 
outlook, including the expected effects of macroeconomic policies; and 
compares the economic assumptions on which the budget is based with the 
assumptions for last year's budget and those of other forecasters. This 
chapter also covers topics related to the effects on the budget of 
changes in economic conditions and assumptions.
  13. Stewardship. This chapter assesses the Government's financial 
condition and sustainability in an integrated framework that includes 
Federal assets and liabilities; 75-year projections of the Federal 
budget under alternative assumptions for discretionary spending, health 
cost, productivity, and demographics; actuarial estimates for the 
shortfalls in Social Security and Medicare; a national balance sheet 
that shows the Federal contribution to national wealth; and a table of 
economic and social indicators. Together these elements serve similar 
analytical functions to a business's accounting statements.
  14. National Income and Product Accounts. This chapter discusses how 
Federal receipts and outlays fit into the framework of the National 
Income and Product Accounts (NIPAs) prepared by the Department of 
Commerce. The NIPA measures are the basis for reporting Federal 
transactions in the gross domestic product (GDP) and for analyzing the 
effect of the budget on aggregate economic activity.

Budget Reform Proposals

  15. Budget Reform Proposals. This chapter is a brief description of 
the Administration's budget reform agenda for addressing the need for 
responsible budgeting and other reforms.

Federal Borrowing and Debt

  16. Federal Borrowing and Debt. This chapter analyzes Federal 
borrowing and debt and explains the budget estimates. It includes 
sections on special topics such as the trends in debt, agency debt, 
investment by Government accounts, and the debt limit.

Federal Receipts and Collections

  17. Federal Receipts. This discussion presents information on receipts 
estimates, enacted tax legislation, and the receipts proposals in the 
budget.
  18. User Charges and Other Collections. This chapter presents 
information on receipts from regulatory fees and on collections from 
market-oriented activities, such as the sale of stamps by the Postal 
Service, which are recorded as offsets to outlays rather than as Federal 
receipts.
  19. Tax Expenditures. This discussion describes and presents estimates 
of tax expenditures, which are defined as revenue losses from special 
exemptions, credits, or other preferences in the tax code. An appendix 
discusses possible alternatives to the current tax expenditure 
baselines. This section is prepared by the Department of the Treasury.

Dimensions of the Budget

  20. Comparison of Actual to Estimated Totals. This chapter compares 
the actual receipts, outlays, and deficit for 2004 with the estimates 
for that year published two years ago in the 2004 Budget. It also 
includes a historical comparison of the differences between receipts, 
outlays, and the deficit as originally proposed with final outcomes.
  21. Outlays to the Public, Net and Gross. This section provides 
information on outlays net and gross of offsetting collections and 
offsetting receipts by agency. Offsetting collections and offsetting 
receipts are netted against outlays and result primarily from the 
Government's business-like activities, such as the sale of stamps by the 
Postal Service.
  22. Trust Funds and Federal Funds. This chapter provides summary 
information on Federal funds and trust funds, which comprise the entire 
budget. For trust funds the information includes income, outgo, and 
balances. Two detailed tables, ``Table 22-4. Income, Outgo, and Balances 
of Major Trust Funds'' and ``Table 22-5. Income, Outgo, and Balances of 
Selected Federal Funds'' are on the enclosed Analytical Perspectives CD 
ROM.
  23. Off-Budget Federal Entities and Non-Budgetary Activities. This 
chapter provides summary information on the off-budget Federal entities 
(Social Security and Postal Service) and non-budgetary activities (such 
as cash flows for credit programs, deposit funds, and regulation).
  24. Federal Employment and Compensation. This chapter provides summary 
data on the level and recent trends in civilian and military employment, 
and personnel compensation and benefits.


[[Page 5]]


Current Services Estimates

  25. Current Services Estimates. This chapter presents estimates, based 
on rules similar to those contained in the Budget Enforcement Act (BEA), 
of what receipts, outlays, and the deficit would be if no changes were 
made to laws already enacted. It discusses the conceptual framework for 
these estimates and describes differences with the BEA requirements. Two 
detailed tables, ``Table 25-12. Current Services Budget Authority by 
Function, Category, and Program'' and ``Table 25-13. Current Services 
Outlays by Function, Category, and Program'' are on the enclosed 
Analytical Perspectives CD ROM.

Budget System and Concepts

  26. The Budget System and Concepts. This is a basic reference to the 
budget process, concepts, laws, and terminology, and includes a glossary 
of budget terms.

0Other

  The following material appears only on the enclosed Analytical 
Perspectives CD ROM:
    Detailed Functional Tables. Table 27-1. ``Budget Authority 
          and Outlays by Function, Category, and Program''.
    Federal Programs by Agency and Account. Table 28-1. 
          ``Federal Programs by Agency and Account''.
    PART Summaries. This section provides one-page summaries of 
          the program assessments and a summary list of all of the 
          assessments with funding, scores, and ratings.