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

    [[Page i]]

                                                                        TABLE OF CONTENTS

                                                                                                                                                     Page

    List of Charts and Tables..................................................................................................................            v

    Introduction

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

    Performance and Management Assessments

         2.           Performance Improvement Initiative.......................................................................................            9

    Crosscutting Programs

         3.           Homeland Security Funding Analysis.......................................................................................           19

         4.           Strengthening Federal Statistics.........................................................................................           37

         5.           Research and Development.................................................................................................           45

         6.           Federal Investment.......................................................................................................           57

         7.           Credit and Insurance.....................................................................................................           69

         8.           Aid to State and Local Governments.......................................................................................          107

         9.           Integrating Services with Information Technology.........................................................................          157

        10.           Federal Drug Control Funding.............................................................................................          163

        11.           California-Federal Bay-Delta Program Budget Crosscut (CALFED)............................................................          165

    Economic Assumptions and Analyses

        12.           Economic Assumptions.....................................................................................................          169

        13.           Stewardship..............................................................................................................          179

        14.           National Income and Product Accounts.....................................................................................          207

    Budget Reform Proposals

        15.           Budget Reform Proposals..................................................................................................          215

    Federal Borrowing and Debt

        16.           Federal Borrowing and Debt...............................................................................................          229

    [[Page ii]]

    Federal Receipts and Collections

        17.           Federal Receipts.........................................................................................................          245

        18.           User Charges and Other Collections.......................................................................................          271

        19.           Tax Expenditures.........................................................................................................          287

    Dimensions of the Budget

        20.           Comparison of Actual to Estimated Totals.................................................................................          331

        21.           Outlays to the Public, Gross and Net.....................................................................................          339

        22.           Trust Funds and Federal Funds............................................................................................          341

        23.           Off-Budget Federal Entities and Non-Budgetary Activities.................................................................          357

        24.           Federal Employment and Compensation......................................................................................          363

    Current Services Estimates

        25.           Current Services Estimates...............................................................................................          371

    The Budget System and Concepts

        26.           The Budget System and Concepts...........................................................................................          391

    Detailed Functional Tables

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

    Federal Programs by Agency and Account

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

    [DOCID:2009_per_spectoc-2]
    [Analytical Perspectives, Budget of the United States Government,
       Fiscal Year 2009]
    [Page iii-x]
    From the Budget of the U.S., FY 2009 Online via GPO Access
    [wais.access.gpo.gov]

    [[Page iii]]

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

                            LIST OF CHARTS AND TABLES

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

    [[Page v]]

                            LIST OF CHARTS AND TABLES

                                 LIST OF CHARTS

                                                                       Page

       2-1.....  Program Ratings are Improving......................      14
       4-1.....  ICSP Statistical Quality and Program Performance         38
                  Dimensions........................................
       4-2.....  Most Recent PART Summary Ratings for Statistical         40
                  Programs..........................................
       5-1.....  American Competitiveness Initiative Research.......      45
       5-2.....  2008 ACI Research Funding..........................      46
       5-3.....  Scores of R&D PART Assessments.....................      48
       7-1.....  Financial Services Regulatory Systems Top 15 Non-        73
                  U.S. Financial Centers............................
       7-2.....  Fannie Mae and Freddie Mac Combined Retained             79
                  Mortgage Portfolios Year-End 2006.................
       7-3.....  Mortgage Purchases and Securitization by Fannie Mae      80
                  and Freddie Mac and Change in Federal Home Loan
                  Bank Advances as a Share of Single-Family Mortgage
                  Originations, First Three Quarters of 2007........
       7-4.....  Face Value of Federal Credit Outstanding...........      93
       13-1....  The Financial Condition of the Federal Government       181
                  and the Nation....................................
       13-2....  Net Federal Liabilities............................     184
       13-3....  Health Care Cost Alternatives......................     189
       13-4....  Effect of Entitlement Savings......................     189
       13-5....  Alternative Receipts Projections...................     190
       13-6....  Alternative Productivity Assumptions...............     190
       13-7....  Alternative Fertility Assumptions..................     191
       13-8....  Alternative Immigration Assumptions................     191
       13-9....  Alternative Mortality Assumptions..................     192
       13-10...  Sources of the Gross Tax Gap.......................     197
       17-1....  Major Provisions of the Tax Code Under the 2001,        246
                  2003, 2004 and 2006 Enacted Tax Relief............
       20-1....  Illustrative Range of Budget Outcomes..............     337
       24-1....  2009 Budget Executive Branch Civilian FTE..........     366
       26-1....  Relationship of Budget Authority to Outlays for         402
                  2009..............................................

                                 LIST OF TABLES

                                                                     Page

    Crosscutting Programs

      Homeland Security Funding Analysis:
       3-1.....  Homeland Security Funding by Agency............          20
       3-2.....  Policy Estimates--Homeland Security Funding by           21
                  National Strategy Mission Area................
       3-3.....  Intelligence and Warning Funding...............          22
       3-4.....  Border and Transportation Security Funding.....          24
       3-5.....  Domestic Counterterrorism Funding..............          26
       3-6.....  Protecting Critical Infrastructure and Key               27
                  Assets Funding................................
       3-7.....  Defending Against Catastrophic Threats Funding.          28
       3-8.....  Emergency Preparedness and Response Funding....          29
       3-9.....  Discretionary Fee-Funded Homeland Security               32
                  Activities by Agency..........................
       3-10....  Mandatory Homeland Security Funding by Agency..          32
       3-11....  Baseline Estimates--Total Homeland Security              33
                  Funding by Agency.............................
       3-12....  Homeland Security Funding by Budget Function...          34
       3-13....  Baseline Estimates--Homeland Security Funding            35
                  by Budget Function............................

    [[Page vi]]

       ........  Appendix--Homeland Security Mission Funding by       CD-ROM
                  Agency and Budget Account.....................

      Strengthening Federal Statistics:

       4-1.....  2007-2009 Budget Authority for Principal                 43
                  Statistical Agencies..........................

      Research and Development:
       5-1.....  *COM041*Federal Research and Development.......          52
       5-2.....  Federal Science and Technology Budget..........          54
       5-3.....  Agency Detail of Selected Interagency R&D                55
                  Efforts.......................................

      Federal Investment:
       6-1.....  Composition of Federal Investment Outlays......          59
       6-2.....  Federal Investment Budget Authority and                  60
                  Outlays: Grant and Direct Federal Programs....
       6-3.....  Summary of PART Ratings and Scores for Direct            63
                  Federal Investment Programs...................
       6-4.....  Net Stock of Federally Financed Physical                 66
                  Capital.......................................
       6-5.....  Net Stock of Federally Financed Research and             67
                  Development...................................
       6-6.....  Net Stock of Federally Financed Education                68
                  Capital.......................................

      Credit and Insurance:

          Text Tables:
                   Summary of PART Scores.......................          71
                   Regulators of Financial Institutions.........          74
                   Largest Ten Claims Against the PBGC's Single-          89
                  Employer Insurance Program, 1975-2006.........
       7-1.....  Estimated Future Cost of Outstanding Federal             93
                  Credit Programs...............................
       7-2.....  Reestimates of Credit Subsidies on Loans                 95
                  Disbursed Between 1992-2007...................
       7-3.....  Direct Loan Subsidy Rates, Budget Authority,             97
                  and Loan Levels, 2007-2009....................
       7-4.....  Loan Guarantee Subsidy Rates, Budget Authority,          98
                  and Loan Levels, 2007-2009....................
       7-5.....  Summary of Federal Direct Loans and Loan                 99
                  Guarantees....................................
       7-6.....  Direct Loan Write-offs and Guaranteed Loan              100
                  Terminations for Defaults.....................
       7-7.....  Appropriations Acts Limitations on Credit Loan          102
                  Levels........................................
       7-8.....  Face Value of Government-Sponsored Lending.....         103
       7-9.....  Lending and Borrowing By Government-Sponsored           104
                  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................         107
       8-2.....  Summary of PART Ratings and Scores for Grants           111
                  to State and Local Governments................
       8-3.....  Trends in Federal Grants to State and Local             113
                  Governments...................................
       8-4.....  Federal Grants to State and Local Governments--         116
                  Budget Authority and Outlays..................
       8-5.....  Summary of Programs by Agency, Bureau, and              125
                  Program.......................................
       8-6.....  Summary of Programs by State...................         126
       8-7.....  School Breakfast Program.......................         127
       8-8.....  National School Lunch Program..................         128
       8-9.....  Special Supplemental Nutrition Program for              129
                  Women, Infants, and Children (WIC)............
       8-10....  Child and Adult Care Food Program..............         130
       8-11....  State Administrative Matching Grants for Food           131
                  Stamp Program.................................
       8-12....  Title I Grants to Local Educational Agencies...         132
       8-13....  Improving Teacher Quality State Grants.........         133
       8-14....  Special Education--Grants to States............         134
       8-15....  Rehabilitation Services--Vocational                     135
                  Rehabilitation Grants to States...............
       8-16....  State Children's Health Insurance Program......         136
       8-17....  Grants to States for Medicaid..................         137
       8-18....  Temporary Assistance for Needy Families (TANF)--        138
                  Family Assistance Grants......................

    [[Page vii]]

       8-19....  Child Support Enforcement--Federal Share of             139
                  State and Local Administrative Costs and
                  Incentives....................................
       8-20....  Low Income Home Energy Assistance Program......         140
       8-21....  Child Care and Development Block Grant.........         141
       8-22....  Child Care and Development Fund--Mandatory.....         142
       8-23....  Child Care and Development Fund--Matching......         143
       8-24....  Head Start.....................................         144
       8-25....  Foster Care--Title IV-E........................         145
       8-26....  Adoption Assistance............................         146
       8-27....  Social Services Block Grant....................         147
       8-28....  Public Housing Operating Fund..................         148
       8-29....  Section 8 Housing Choice Vouchers..............         149
       8-30....  Public Housing Capital Fund....................         150
       8-31....  Community Development Block Grants.............         151
       8-32....  HOME Investment Partnerships Program...........         152
       8-33....  Airport Improvement Program....................         153
       8-34....  Highway Planning and Construction..............         154
       8-35....  Federal Transit Formula Grants and Research....         155
       8-36....  Universal Service Fund E-Rate..................         156

      Integrating Services with Information Technology:

       9-1.....  Effectiveness of Agencys' IT Management and E-       CD-ROM
                  Gov Processes.................................
       9-2.....  Management Guidance............................      CD-ROM
       9-3.....  Management Watch List for FY 2008..............      CD-ROM
       9-4.....  High Risk IT Project List As of September 30,        CD-ROM
                  2007..........................................
       9-5.....  Agencies with IT Investments on the Management       CD-ROM
                  Watch List....................................
       9-6.....  FY 2009 Exhibit 300 Evaluation Criteria........      CD-ROM
       9-7.....  Comparison of the Management Watch List by           CD-ROM
                  Fiscal Year...................................
       9-8.....  Number of Recurring Investments on the               CD-ROM
                  Management Watch List.........................
       9-9.....  Lines of Business (LoB) Update.................      CD-ROM
       9-10....  Status of E-Government Initiatives.............      CD-ROM

      Federal Drug Control Funding:
       10-1....  Federal Drug Control Funding, FY 2007-2009.....         163

      California-Federal Bay-Delta Program Budget Crosscut (CALFED):

          Text Table:
                     CALFED-Related Federal Funding Budget               165
                  Crosscut......................................
                     CALFED FY 1998-2009 Budget Crosscut              CD-ROM
                  Methodology...................................
                     CALFED Federal Agency Funding--Summary by        CD-ROM
                  Category and Agency Breakout..................
                     CALFED Project Descriptions................      CD-ROM
                     CALFED Fiscal Years 2006-2007 Federal            CD-ROM
                  Funding.......................................
                     CALFED Fiscal Years 2008-2009 Funding Under      CD-ROM
                  New and Old Authority.........................
                     CALFED State Agency Funding................      CD-ROM
                     Department of the Interior Certification of      CD-ROM
                  Budget Numbers................................
    Economic Assumptions and Analyses

      Economic Assumptions:
       12-1....  Economic Assumptions...........................         172
       12-2....  Comparison of Economic Assumptions.............         173
       12-3....  Comparison of Economic Assumptions in the 2008          175
                  and 2009 Budgets..............................
       12-4....  Adjusted Structural Balance....................         175
       12-5....  Sensitivity of the Budget to Economic                   177
                  Assumptions...................................

      Stewardship:
       13-1....  Government Assets and Liabilities..............         185

    [[Page viii]]

       13-2....  Long-Run Budget Projections....................         188
       13-3....  Scheduled Benefits in Excess of Future Taxes            196
                  and Premiums--Actuarial Present Values........
       13-4....  Sources of the Tax Gap from Income                      198
                  Underreporting................................
       13-5....  National Wealth................................         200
       13-6....  Trends in National Wealth......................         201
       13-7....  Economic and Social Indicators.................         202

      National Income and Product Accounts:
       14-1....  Federal Transactions in the National Income and         209
                  Product Accounts, 1998-2009...................
       14-2....  Relationship of the Budget to the Federal               211
                  Sector, NIPA's................................
    Budget Reform Proposals

      Budget Reform Proposals:
       15-1....  Mandatory Proposals Subject to PAYGO...........         215
       15-2....  Discretionary Caps and Adjustments.............         217
       15-3....  Program Integrity Base and Cap Adjustments.....         218
       15-4....  Direct Savings Estimated from 2009 Program              219
                  Integrity Funding.............................
       15-5....  Transportation Category for Highways and Mass           220
                  Transit Spending..............................
    Federal Borrowing and Debt

      Federal Borrowing and Debt:
       16-1....  Trends in Federal Debt Held by the Public......         229
       16-2....  Federal Government Financing and Debt..........         232
       16-3....  Agency Debt....................................         234
       16-4....  Debt Held by Government Accounts...............         236
       16-5....  Federal Funds Financing and Change in Debt              240
                  Subject to Statutory Limit....................
       16-6....  Foreign Holdings of Federal Debt...............         240
    Federal Receipts and Collections

      Federal Receipts:
       17-1....  Receipts by Source--Summary....................         245
       17-2....  Effect on Receipts of Changes in the Social             245
                  Security Taxable Earnings Base................
       17-3....  Effect of Proposals on Receipts................         265
       17-4....  Receipts by Source.............................         268

      User Charges and Other Collections:
       18-1....  Gross Outlays, User Charges, Other Offsetting           271
                  Collections and Receipts from the Public, and
                  Net Outlays...................................
       18-2....  Total User Charge Collections..................         274
       18-3....  User Fee and Other User Charge Proposals.......         276
       18-4....  Offsetting Collections and Receipts from the            282
                  Public........................................
       18-5....  Offsetting Receipts by Type....................         283

      Tax Expenditures:
       19-1....  Estimates of Total Income Tax Expenditures.....         288
       19-2....  Estimates of Tax Expenditures for the Corporate         293
                  and Individual Income Taxes...................
       19-3....  Income Tax Expenditures Ranked by Total 2009-           298
                  2013 Projected Revenue Effect.................
       19-4....  Present Value of Selected Tax Expenditures for          301
                  Activity in Calendar Year 2007................

      Appendix A: Treasury Review of the Tax Expenditure                 315
       Presentation.............................................

        Appendix Tables:

             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

      Appendix B: Performance Measures and the Economic Effects          325
       of Tax Expenditures......................................

    [[Page ix]]

    Dimensions of the Budget

      Comparison of Actual to Estimated Totals:
       20-1....  Comparison of Actual 2007 Receipts with the             331
                  Initial Current Services Estimates............
       20-2....  Comparison of Actual 2007 Outlays with the              332
                  Initial Current Services Estimates............
       20-3....  Comparison of the Actual 2007 Deficit with the          333
                  Initial Current Services Estimate.............
       20-4....  Comparison of Actual and Estimated Outlays for          334
                  Mandatory and Related Programs Under Current
                  Law...........................................
       20-5....  Reconciliation of Final Amounts for 2007.......         335
       20-6....  Comparison of Estimated and Actual Surpluses or         336
                  Deficits Since 1982...........................
       20-7....  Differences Between Estimated and Actual                337
                  Surpluses or Deficits for Five-Year Budget
                  Estimates Since 1982..........................

      Outlays to Public, Gross and Net:
       21-1....  Total Outlays, Gross and Net of Offsetting              340
                  Collections and Receipts from the Public, by
                  Agency, 2007-2009.............................

      Trust Funds and Federal Funds:
       22-1....  Receipts, Outlays, and Surplus or Deficit by            342
                  Fund Group....................................
       22-2....  Income, Outgo, and Balances of Trust Funds              343
                  Group.........................................
       22-3....  Comparison of Total Federal Fund and Trust Fund         344
                  Receipts to Unified Budget Receipts, Fiscal
                  Year 2007.....................................
       22-4....  Income, Outgo, and Balances of Major Trust              346
                  Funds.........................................
       22-5....  Income, Outgo, and Balances of Selected Federal         353
                  Funds.........................................

      Off-Budget Federal Entities and Non-Budgetary Activities:
       23-1....  Comparison of Total, On-Budget, and Off-Budget          358
                  Transactions..................................

      Federal Employment and Compensation:

          Text Table:                                             ..........
         ......    Overseas Staffing Under Chief of Mission              364
                  Authority.....................................
       24-1....  Federal Civilian Employment in the Executive            365
                  Branch........................................
       24-2....  Total Federal Employment (as measured by Full-          367
                  Time Equivalents).............................
       24-3....  Personnel Compensation and Benefits............         368
    Current Service Estimates

      Current Service Estimates:
       25-1....  Baseline Category Totals.......................         371
       25-2....  Impact of Budget Policy........................         372
       25-3....  Alternative Baseline Assumptions...............         374
       25-4....  Summary of Economic Assumptions................         374
       25-5....  Beneficiary Projections for Major Benefit               375
                  Programs......................................
       25-6....  Impact of Regulations, Expiring Authorizations,         376
                  and Other Assumptions in the Baseline.........
       25-7....  Baseline Receipts by Source....................         383
       25-8....  Change in Baseline Outlay Estimates by                  384
                  Category......................................
       25-9....  Current Services Outlays by Function...........         385
       25-10...  Current Services Outlays by Agency.............         386
       25-11...  Current Services Budget Authority by Function..         387
       25-12...  Current Services Budget Authority by Agency....         388
       25-13...  Current Services Budget Authority by Function,       CD-ROM
                  Category and Program..........................
       25-14...  Current Services Outlays by Function, Category       CD-ROM
                  and Program...................................
    The Budget System and Concepts

      The Budget System and Concepts:
       26-1....  Totals for the Budget and the Federal                   395
                  Government....................................
    Detailed Functional Tables

      Detailed Functional Tables:
       27-1....  Budget Authority and Outlays by Function,            CD-ROM
                  Category and Program..........................

    [[Page x]]

    Federal Programs by Agency and Account

      Federal Programs by Agency and Account:
       28-1....  Federal Programs by Agency and Account.........      CD-ROM