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



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               14.   NATIONAL INCOME AND PRODUCT ACCOUNTS

  The National Income and Product Accounts (NIPAs) are an integrated set 
of statistics prepared by the Department of Commerce that measure 
aggregate U.S. economic activity. Because the NIPAs include Federal 
transactions and are widely used in economic analysis, it is important 
to understand the differences between the NIPAs' distinctive 
presentation of Federal transactions and that of the budget.
  The main purpose 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 excludes intermediate 
product to avoid double counting. Government consumption expenditures 
along with 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).
  Not all government expenditures are counted in GDP. Social benefits, 
grants to State and local governments, subsidies, and interest 
payments--are not purchases of final output and are therefore not 
included in GDP; however, these transactions are recorded in the NIPA 
government account that records current receipts and expenditures 
(including depreciation on government gross investment) because all of 
these affect the government's claim on economic resources.
  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 framework 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. For example, it 
omits from its current receipts and current expenditures certain 
``capital transfers'' that are recorded in the budget. 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 and as a result they differ from the budget in 
netting and grossing, 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 
measure of net Federal Government saving to differ from the budget 
surplus or deficit. Unlike timing and coverage differences, netting and 
grossing differences have equal effects on receipts and expenditures and 
thus have no effect on net Government saving. The NIPAs also combine 
transactions into different categories from those used in the budget.
---------------------------------------------------------------------------
  \2\ Over the period 1994-2007, NIPA current expenditures averaged 3.6 
percent higher than budget outlays, while NIPA current receipts averaged 
2.5 percent higher than budget receipts.
---------------------------------------------------------------------------
   Netting and grossing differences arise because the budget records 
certain transactions as offsets to outlays that are recorded as current 
receipts in the NIPAs (or vice versa). The budget treats as governmental 
receipts all income that comes to the Government due to its sovereign 
powers--mainly, but not exclusively, taxes. The budget offsets against 
outlays any income that arises from voluntary business-type transactions 
with the public. The NIPAs generally follow this concept as well, and 
income to Government revolving accounts (such as the Government Printing 
Office) is offset against their expenditures. However, the NIPAs have a 
narrower definition of ``business-type transactions'' than does the 
budget. Rents and royalties, and some regulatory or inspection fees, 
which are classified as offsets to outlays in the budget, are recorded 
in the NIPAs 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 addition, the NIPAs 
treat the net surplus of Government enterprises as a component of 
current receipts.
  In the budget, any intragovernmental income paid from one account to 
another is offset against outlays rather than being recorded as a 
receipt so that total outlays and receipts measure only transactions 
with the public. For example, Government contributions for Federal 
employee social insurance (such as Social Security) are offset 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 recorded explicitly in the budget. For 
example, unemployment benefits for Federal employees are financed by 
direct appropriations rather than social insurance contributions. The 
NIPAs impute the social insurance contributions to the expenditures of 
employing agencies--again, treating the Federal Government like any 
other employer.

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   Timing differences for receipts occur because the NIPAs generally 
record 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 day of 
a month falls on a weekend or holiday, monthly benefit checks normally 
mailed on the first day 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. As a result, the budget totals occasionally 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 arise 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 NIPA Federal current 
account 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 can be thought of as a proxy for the services that 
capital renders; i.e., for its contribution to Government output of 
public services. The depreciation charge is not a full reflection of 
capital services, however, since it does not include the net return to 
capital that in a private corporation would appear as interest income or 
profit. The NIPAs would need to include an imputed interest charge for 
government capital to assure a fully parallel treatment.
  Certain items in the budget are excluded from the NIPA Federal current 
account because they are related to the acquisition or sale of assets, 
and not linked to current consumption or income. Examples include 
Federal investment grants to State and local governments, investment 
subsidies to business, lump sum payments to amortize the unfunded 
liability of the Uniformed Services Retiree Health Care Fund and the new 
Postal Service Retiree Health Benefits Fund, and forgiveness of debt 
owed by foreign governments. Likewise, estate and gift taxes, included 
in budget receipts, are excluded from NIPA current receipts as being 
capital transfers. 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 from the Federal current 
account as an exchange of assets with no current production involved. 
The NIPAs are not strictly consistent in this interpretation, however, 
since they do include in total revenues the taxation of capital gains. 
Also unlike the budget, the NIPAs exclude transactions with U.S. 
territories.
  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 employer contributions as personal income and employee 
payments as a transfer of income within the household sector, 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 
at the time 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. This treatment recognizes that a 
Federal direct loan is an exchange of assets with equal value after 
allowing for the subsidy to the borrower implied by the terms of the 
loan. It also recognizes the subsidy element in loan guarantees. In the 
NIPAs, these subsidies are not recognized. The NIPAs, like the budget, 
include all interest transactions with the public, including interest 
received by and paid to the loan financing accounts; and both the NIPAs 
and the budget include administrative costs of credit program 
operations.
  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.

                     Federal Sector Current Receipts

  Table 14-1 shows the NIPA classification of Federal current receipts 
in five major categories and four of the subcategories used to measure 
taxes, which are similar to the budget categories but with some 
significant differences.
  Current tax receipts is the largest category of current receipts, and 
its personal current taxes subcategory--

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                                                    Table 14-1.  FEDERAL TRANSACTIONS IN THE NATIONAL INCOME AND PRODUCT ACCOUNTS, 1998-2009
                                                                                    (In billions of dollars)
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                                                                                                                                                                                  Estimate
                      Description                                1998       1999       2000       2001       2002       2003       2004       2005       2006       2007   ---------------------
                                                                                                                                                                               2008       2009
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                      CURRENT RECEIPTS

Current tax receipts........................................   1,105.9    1,165.2    1,305.6    1,266.9    1,089.7    1,065.9    1,113.8    1,328.9    1,515.5    1,644.0    1,555.0    1,701.6
  Personal current taxes....................................     814.1      868.5      987.4      993.8      851.1      781.7      778.7      914.1    1,037.8    1,149.3    1,079.3    1,234.4
  Taxes on production and imports...........................      80.7       82.5       87.8       86.4       86.4       89.1       93.2       98.1       99.0      100.5      102.2      103.0
  Taxes on corporate income.................................     205.9      207.9      223.5      179.5      144.7      186.8      232.7      305.0      367.6      380.5      360.9      351.7
  Taxes from the rest of the world..........................       5.2        6.2        6.8        7.1        7.4        8.3        9.3       11.7       11.1       13.7       12.6       12.6
Contributions for government social insurance...............     604.4      642.2      687.8      713.8      729.6      749.9      795.1      843.4      887.6      937.2      981.0    1,032.8
Income receipts on assets...................................      22.3       20.9       24.3       26.4       21.3       21.4       23.7       24.9       24.3       25.9       26.0       28.3
Current transfer receipts...................................      21.0       21.8       24.9       26.5       25.5       24.7       27.7       11.0       35.0       35.7       37.7       42.4
Current surplus of government enterprises...................        -*        0.3       -1.3       -6.5       -1.1        2.5        0.2       -5.2       -3.7       -1.9       -0.4       -0.2
                                                             -----------------------------------------------------------------------------------------------------------------------------------

      Total current receipts................................   1,753.5    1,850.3    2,041.2    2,027.1    1,865.0    1,864.4    1,960.6    2,203.0    2,458.7    2,641.0    2,599.2    2,805.0

                                                             ===================================================================================================================================
                    CURRENT EXPENDITURES

Consumption expenditures....................................     452.9      469.5      496.0      519.7      575.5      648.0      706.6      757.9      800.3      841.6      912.1     1005.6
  Defense...................................................     301.3      307.2      321.2      335.7      368.4      424.5      470.4      507.8      532.1      568.0      604.7      679.0
  Nondefense................................................     151.6      162.3      174.8      184.0      207.1      223.5      236.2      250.2      268.2      273.6      307.4      326.6
Current transfer payments...................................     940.3      976.3    1,023.2    1,108.0    1,216.6    1,308.9    1,377.5    1,462.8    1,548.4    1,644.1    1,738.2    1,808.8
  Government social benefits................................     716.4      733.0      762.7      823.6      900.9      956.3    1,005.1    1,071.6    1,154.5     1241.0    1,311.5    1,377.3
  Grants-in-aid to State and local governments..............     209.9      227.7      244.1      268.2      296.7      329.3      347.6      359.5      360.8      370.8      390.9      398.2
  Other transfers to the rest of the world..................      14.0       15.7       16.4       16.3       19.0       23.2       24.7       31.7       33.1       32.2       35.9       33.4
Interest payments...........................................     299.7      285.9      283.3      267.9      234.9      214.6      216.8      243.1      284.1      302.8      319.2      338.0
Subsidies...................................................      33.6       36.1       49.6       53.7       37.9       46.1       43.5       55.0       52.7       45.6       52.5       45.9
Wage disbursements less accruals............................  .........  .........  .........  .........  .........  .........  .........  .........  .........  .........  .........  .........
                                                             -----------------------------------------------------------------------------------------------------------------------------------

      Total current expenditures............................   1,726.5    1,767.8    1,852.0    1,949.3    2,064.9    2,217.6    2,344.4    2,518.9    2,685.6    2,834.0    3,022.0    3,198.3

                                                             ===================================================================================================================================
      Net Federal Government saving.........................      27.0       82.4      189.2       77.8     -199.9     -353.2     -383.8     -315.8     -226.9     -193.0     -422.7     -393.3

          ADDENDUM: TOTAL RECEIPTS AND EXPENDITURES

Current receipts............................................   1,753.5    1,850.3    2,041.2    2,027.1    1,865.0    1,864.4    1,960.6    2,203.0    2,458.7    2,641.0    2,599.2    2,805.0
Capital transfer receipts...................................      23.9       27.6       28.8       28.2       26.4       21.7       24.7       24.6       27.7       25.8       26.5       26.1
                                                             -----------------------------------------------------------------------------------------------------------------------------------

      Total receipts........................................   1,777.4    1,877.9    2,070.1    2,055.3    1,891.3    1,886.1    1,985.3    2,227.6    2,486.4    2,666.8    2,625.8    2,831.1

Current expenditures........................................   1,726.5    1,767.9    1,852.0    1,949.3    2,064.9    2,217.6    2,344.4    2,518.9    2,685.6    2,834.0    3,022.0    3,198.3
Net investment:
  Gross government investment:
    Defense.................................................      45.4       46.5       48.5       49.9       54.5       59.0       65.1       72.3       77.2       81.9       94.0       95.5
    Nondefense..............................................      29.7       31.9       32.2       30.3       32.6       33.3       33.6       35.9       40.5       38.4       39.2       39.2
  Less: Consumption of fixed capital:
    Defense.................................................      59.8       59.7       60.2       60.3       60.4       61.4       63.4       67.0       71.2       74.9       78.1       81.3
    Nondefense..............................................      22.9       24.5       26.5       27.7       28.2       28.7       29.3       30.8       32.6       33.4       36.8       39.9
Capital transfer payments...................................      28.2       31.3       39.3       39.8       44.3       62.0       62.9       66.0       69.2       76.7       91.4       95.2
Net purchases of nonproduced assets.........................      -5.3       -1.7       -0.3       -0.9        0.3          *        0.1       -0.7       -0.3      -13.6      -15.5       -2.5
                                                             -----------------------------------------------------------------------------------------------------------------------------------

      Total expenditures....................................   1,741.8    1,791.8    1,885.1    1,980.3    2,108.0    2,281.9    2,413.5    2,594.5    2,768.4    2,909.0    3,116.2    3,304.5

                                                             ===================================================================================================================================
      Net lending or net borrowing (-)......................      35.7       86.1      185.0       75.0     -216.7     -395.8     -428.1     -366.9     -281.9     -242.2     -490.4    -473.5
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* $50 million or less.


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 income 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 
category of current receipts. It differs from the corresponding budget 
category primarily be

[[Page 210]]

cause: (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 Parts B and D of Medicare as governmental 
receipts, while the budget nets them against outlays; (3) the NIPAs 
treat Government employee contributions to their pension plans as a 
transfer of personal income within the household sector (as if the 
pension system were private), while the budget includes them in 
governmental 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, less insurance settlements from the National Flood Insurance 
Program--virtually all of which are netted against outlays in the 
budget. The current surplus (or deficit) of Government enterprises 
category 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 14-1 shows the five major NIPA categories for current 
expenditures and five subcategories, which differ greatly from the 
corresponding budget categories.
  Government consumption expenditures consist of goods and services 
purchased by the Federal Government, including compensation of employees 
and depreciation on fixed capital. Gross investment (shown among the 
addendum items in Table 14-1) is thus excluded from current expenditures 
and does not figure 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, Government gross investment is included in total GDP along 
with current consumption expenditures (including depreciation), which 
makes the treatment of the government sector in the NIPAs similar to 
that of the private sector. Investment includes structures, equipment, 
and computer software.
  The largest expenditure category consists mainly of current transfer 
payments for Government income security and health benefits, such as 
Social Security and Medicare. 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 consist of 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 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, as explained previously loans and guarantees 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

  Since the introduction of the unified budget in January 1968, NIPA 
current receipts have been greater than budget receipts in most years. 
This is due principally to grossing differences and the fact that estate 
and gift taxes, which the NIPAs exclude as capital transfers, have been 
roughly matched by Medicare premiums, which the NIPAs include as a 
governmental receipt but the budget treats as an offsetting receipt. (In 
the budget, offsetting receipts are not included in the governmental 
receipts total but instead are netted against the outlay total.) Since 
1986, 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 usual netting and grossing 
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, the cost of direct loans to the 
public recorded in the budget has been reduced bringing it closer to the 
NIPA treatment. Disbursement and repayment of loans made since that time 
are recorded outside the budget; only credit subsidies are recorded as 
budget outlays, unlike the

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                                                              Table 14-2.  RELATIONSHIP OF THE BUDGET TO THE FEDERAL SECTOR, NIPA's
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                                                                                                                                                                                  Estimate
                      Description                                1998       1999       2000       2001       2002       2003       2004       2005       2006       2007   ---------------------
                                                                                                                                                                               2008       2009
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

                          RECEIPTS

Budget receipts.............................................   1,722.0    1,827.6    2,025.5    1,991.4    1,853.4    1,782.5    1,880.3    2,153.9    2,407.3    2,568.2    2,521.2    2,699.9
  Contributions to government employee retirement plans.....      -4.3       -4.5       -4.8       -4.7       -4.6       -4.6       -4.6       -4.5       -4.4       -4.3       -4.7       -4.8
  Capital transfers received................................     -23.9      -27.6      -28.8      -28.2      -26.3      -21.7      -24.7      -24.6      -27.7      -25.8      -26.5      -26.1
  Other coverage differences................................      -5.8       -7.0       -8.0       -7.9       -8.9       -9.0      -10.4      -11.3      -11.7      -12.3      -13.2      -14.3
  Netting and grossing......................................      64.5       65.7       70.6       69.9       77.0       85.1       89.7       75.0      108.3      117.5      127.9      140.0
  Timing differences........................................       1.1       -3.9      -13.2        6.7      -25.6       32.1       30.3       14.4      -13.0       -2.4       -5.4       10.1

    NIPA current receipts...................................   1,753.5    1,850.3    2,041.2    2,027.1    1,865.0    1,864.4    1,960.6    2,203.0    2,458.7    2,641.0    2,599.2    2,805.0

                                                             ===================================================================================================================================
                        EXPENDITURES

Budget outlays..............................................   1,652.7    1,702.0    1,789.2    1,863.2    2,011.2    2,160.1    2,293.0    2,472.2    2,655.4    2,730.2    2,931.2    3,107.4
  Government employee retirement plan transactions..........      31.3       32.1       31.7       31.5       33.7       33.1       33.5       39.4       42.1       41.1       51.2       55.7
  Deposit insurance and other financial transactions........      -7.1       -6.1       -9.0       -6.2       -6.7        2.1        0.4        7.1       -3.4       12.7       21.7       13.3
  Capital transfer payments.................................     -28.2      -31.3      -35.1      -39.8      -44.1      -45.4      -46.4      -47.7      -51.2      -76.7      -91.4      -95.2
  Net purchases of nonproduced assets.......................       5.3        1.7        0.3        0.9       -0.3         -*       -0.1        0.7        0.3       13.6       15.5        2.5
  Net investment............................................       7.6        5.7        6.0        7.9        1.4       -2.3       -6.1      -10.3      -13.9      -11.8      -18.4      -13.5
  Other coverage differences................................       1.0        2.7        4.0        7.9       -0.6      -13.5      -21.3      -26.5      -38.4       -6.3      -12.5       -7.2
  Netting and grossing differences..........................      64.5       65.7       70.6       69.9       77.0       85.1       89.7       75.0      108.3      117.5      127.9      140.0
  Timing differences........................................      -0.7       -4.7       -5.6       14.3       -6.7       -1.6        1.6        8.9      -13.6       13.7       -3.3       -4.6

    NIPA current expenditures...............................   1,726.5    1,767.8    1,852.0    1,949.3    2,064.9    2,217.6    2,344.4    2,518.9    2,685.6    2,834.0    3,022.0    3,198.3

                          ADDENDUM

  Budget surplus or deficit (-).............................      69.3      125.6      236.2      128.2     -157.8     -377.6     -412.7     -318.3     -248.2     -162.0     -410.0     -407.4
  NIPA net Federal Government saving........................      27.0       82.4      189.2       77.8     -199.9     -353.2     -383.8     -315.8     -226.9     -193.0     -422.7     -393.3
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* $50 million or less.


NIPAs which do not include this element of government expenditure.
  Every year during the period 1975-1992, the budget deficit exceeded in 
absolute value net Federal Government saving as measured in the NIPAs. 
The largest difference, $78.8 billion, occurred in 1991 as a result of 
resolving failed financial institutions as discussed above; the budget 
deficit was then -$269.2 billion, while the NIPA net Government saving 
was -$190.5 billion. In 1993-2002, NIPA net Federal Government saving 
exceeded the budget deficit in absolute value when the budget was in 
deficit and fell short of the budget surplus during the years the budget 
was in surplus. For 2003-2006, and again for 2009, the NIPA net Federal 
Government saving was, or is estimated to be, smaller than the budget 
deficit in absolute value, while for 2007 and 2008 the reverse is the 
case.
  Table 14-1 displays Federal transactions using NIPA concepts with 
actual data for 1998-2007 and estimates for 2008 and 2009 consistent 
with the Administration's budget proposals. Table 14-2 summarizes the 
reasons for differences between the data. Annual NIPA data for 1948-2009 
are published in Section 14 of a separate budget volume, Historical 
Tables, Budget of the U.S. Government, Fiscal Year 2009.
  Detailed estimates of NIPA current receipts and expenditures 
consistent with the budget and including quarterly estimates 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 www.bea.doc.gov/bea/pubs.htm.