Budget Object Classification: Origins and Recent Trends (Letter Report,
09/13/94, GAO/AIMD-94-147).

Object classification, one of several ways to present budgetary
information, is concerned with the personal and contractual service
obtained, capital assets acquired, and other charges and payments made
by government. This report provides information on budget object
classes. Specifically, GAO defines object classifications; discusses
their origins, development, and use; presents historical trend data; and
comments on recent actual and proposed uses of object class data to
lower federal administrative costs.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  AIMD-94-147
     TITLE:  Budget Object Classification: Origins and Recent Trends
      DATE:  09/13/94
   SUBJECT:  Administrative costs
             Budget administration
             Public administration
             Cost control
             Budget obligations
             Budget outlays
             Oversight by Congress
             Object classifications
             Appropriation acts
             Budget authority

             
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Cover
================================================================ COVER


Report to the Ranking Minority Member, Committee on Budget, U.S. 
Senate

September 1994

BUDGET OBJECT CLASSIFICATION -
ORIGINS AND RECENT TRENDS

GAO/AIMD-94-147

Budget Object Classification


Abbreviations
=============================================================== ABBREV

  DOD - Department of Defense
  GAO - General Accounting Office
  GDP - gross domestic product
  OMB - Office of Management and Budget

Letter
=============================================================== LETTER


B-257650

September 13, 1994

The Honorable Pete V.  Domenici
Ranking Minority Member
Committee on Budget
United States Senate

Dear Senator Domenici: 

This report responds to your request for background information on
budget object classes.  Specifically, as agreed with your office, we
define object classifications; discuss their origins, development,
and use; present historical trend data; and comment on recent actual
and proposed uses of object class data to reduce federal
administrative costs. 

The budgetary information presented in this report was developed from
an automated system used by the Office of Management and Budget (OMB)
to collect and process information for the President's annual budget
request.  Although these data were not verified at the individual
budget account level, we did summarize and reconcile fiscal year
obligations by object class to published sources.  Appendix I
provides additional details on our scope and methodology. 


   RESULTS IN BRIEF
------------------------------------------------------------ Letter :1

Object classification, one of several ways to present budgetary
information, is concerned with the personal and contractual services
obtained, capital assets acquired, and other charges and payments
made by government--that is, the means of public programs.  During
the federal government's first century, object-of-expenditure
appropriations, one of several actions initiated by the Congress
during this period to control executive actions, became the
predominant means to provide budgetary authority.  However, by the
early twentieth century, due to the institution of other less direct
means of control and to the increasing complexity of the federal
government, objects of expenditure gradually gave way to
appropriations based on programs, projects, and activities and became
supplementary, rather than defining, data within the federal budget
process. 

During fiscal years 1971 through 1993, object class obligation trends
have mirrored the better known trends exhibited by federal outlays.\1
For example, gross obligations for interest charges and "transfer
payments," such as grants and social and health insurance, have grown
at about twice the rate of U.S.  gross domestic product (GDP). 
Correspondingly, gross obligations for what remains--the "operating
costs" of the federal government--represent a declining share of
total obligations, growing at less than one-half the pace of overall
economic growth.  In fact within this category of obligations, only a
few object classes--personnel benefits; rent, communications, and
utilities; consulting and other services; and equipment--have shown
real growth rates greater than one percent over the 23-year trend
period. 

In 1993, the administration, in Executive Order 12837, sought to
reduce federal administrative costs by reducing obligations for
certain object classes presumed to be administrative in nature. 
Several bills were also introduced in the Congress designed to
achieve similar results.  However, using the object classification
structure as a means to achieve administrative cost savings presents
definitional problems because object classes do not distinguish
between administrative and program costs.  Moreover, the object
classes targeted for reduction have experienced very low or even
negative average annual growth rates since 1976. 


--------------------
\1 Obligations are binding agreements--orders placed, contracts
awarded, services received, etc.--that will result in outlays,
immediately or in the future.  Budgetary resources must be available
before obligations legally can be incurred.  Outlays are payments to
liquidate obligations. 


   WHAT ARE OBJECT CLASSES? 
------------------------------------------------------------ Letter :2

Object classification is one of several ways to array financial data
in budget presentations.  This classification approach emphasizes the
objects, rather than the results of government expenditure.  Object
classes are used to report obligations

     "...according to the nature of the services or articles
     procured....Obligations are classified by the initial purpose
     for which they are incurred, rather than for the end product or
     service provided."\2

All budget classification schemes--organization, object, function,
project/activity, and program--provide information that is intended
to be useful to financial decision-making.  Each approach is
concerned, to varying degrees, with control, management, and
planning.  Historically, object classification is the second most
common scheme for presenting budgetary information, following only
organizational classifications, and is largely used for control
purposes.\3

Currently, in the federal budget process, object class data are
required for all expenditure accounts, except credit financing
accounts, and are unique in that they are the only budget
presentation based solely on obligations, rather than budget
authority or outlays.  OMB provides detailed definitions for, and
instructions on recording obligations by object class in Circular No. 
A-11, Preparation and Submission of Budget Estimates, and Circular
No.  A-34, Instructions on Budget Execution.  Table 1 displays the
object series and classes used within the federal budget process. 



                           Table 1
           
               Object Classification Structure

Object
class     Standard title  Examples of obligations
--------  --------------  ----------------------------------
Series 10 Personal
Services and Benefits
------------------------------------------------------------
11.0      Personnel       Gross compensation for personal
          compensation    services rendered to the
                          government by federal civilian,
                          military, and nonfederal personnel

12.0      Personnel       Benefits for currently employed
          benefits        federal civilian, military, and
                          certain nonfederal personnel

13.0      Benefits for    Retirement benefits, severance pay
          former          and other benefits due to former
          personnel       employees or their survivors


Series 20 Contractual
Services and Supplies
------------------------------------------------------------
21.0      Travel and      Transportation, subsistence and
          transportation  other expenses incident to
          of persons      authorized travel, paid either
                          directly by the government or by
                          reimbursing the traveler

22.0      Transportation  Contractual obligations for, care
          of things       during, and other services
                          incident to the transport of
                          things

23.0      Rent,           Charges for the possession and use
          communications  of land, structures, or equipment
          , and           owned by others, and for
          utilities       communication and utility services

24.0      Printing and    Charges for contractual printing
          reproduction    and reproduction, and related
                          composition and binding expenses

25.0      Consulting and  Contractual obligations for
          other services  consulting (advisory and
                          assistance) and other services;
                          purchase of goods and services
                          from other federal agencies and
                          accounts; operations of
                          government-owned, contractor-
                          operated facilities; research and
                          development contracts

26.0      Supplies and    Charges for consumable commodities
          materials


Series 30 Acquisition of
Capital Assets
------------------------------------------------------------
31.0      Equipment       Charges for the purchase of
                          personal property expected to have
                          a period of service of a year or
                          more (e.g., furniture, tools and
                          instruments, machinery, data
                          processing and telecommunications
                          equipment, and armaments)

32.0      Land and        Charges for purchase of land,
          structures      buildings and other structures,
                          and nonstructural improvements;
                          also includes payments from credit
                          liquidating accounts which result
                          in the acquisition of a physical
                          asset rather than a loan asset

33.0      Investments     Obligations for the purchase of
          and loans       stocks, bonds, debentures, and
                          other securities; payments from
                          credit liquidating accounts
                          resulting in the government
                          acquiring title to a note rather
                          than physical assets


Series 40 Grants and
Fixed Charges
------------------------------------------------------------
41.0      Grants,         Cash payments to foreign
          subsidies, and  countries, states, other political
          contributions   jurisdictions, corporations,
                          associations and individuals;
                          credit program subsidies; taxes
                          and payments in lieu of taxes

42.0      Insurance       Benefit payments from social
          claims and      insurance and retirement trust
          indemnities     funds; payments for losses,
                          claims, and judgments; payments
                          from credit liquidating accounts
                          where no asset is received

43.0      Interest and    Payments to creditors for the use
          dividends       of moneys loaned, deposited,
                          overpaid, or otherwise made
                          available and distribution of
                          earnings to owners of trust or
                          other funds

44.0      Refunds         Payments to refund amounts
                          previously received by the
                          government to correct computation
                          errors, erroneous billings, or
                          other factors


Series 90 Other Charges
------------------------------------------------------------
91.0      Unvouchered     Charges that may be incurred
                          lawfully for confidential
                          purposes, not subject to detailed
                          vouchering or reporting

92.0      Undistributed   Charges that can't be distributed
                          to above classes, including
                          obligations relating to transfers
                          between federal and trust funds
                          resulting from appropriation or
                          general transfer authority

93.0      Limitations on  Obligations made by revolving and
          expenses        trust funds which have annual
                          limitations on administrative or
                          nonadministrative expenses
------------------------------------------------------------
Source:  OMB Circular No.  A-11, Preparation and Submission of Budget
Estimates

Despite the apparent precision of the object classification
structure, object class data can be easily misunderstood.  Problems
occur when assumptions are made about the nature and extent of
results achieved based on a particular pattern of object class
obligations.  Because object classes group obligations according to
the "articles procured...rather than...the...service provided," any
conclusion about end results can be misleading.  For example,
recorded equipment obligations (object class 31) do not necessarily
represent total equipment purchases within a budget account; an
agency could obtain similar items as "contractor-furnished equipment"
under an existing contract and properly record the obligation against
object class 25.  Similarly, contractual obligations (object class
25) for consulting services may not capture the full extent of expert
consultant services within an account.  Agencies could also obtain an
expert consultant through a term appointment, with the obligation
properly recorded as personnel compensation (object class 11), or
through a grant, with the consultant subsequently hired by the
grantee (object class 41).  Thus, using object class data to draw
conclusions about the results achieved can be problematic. 


--------------------
\2 U.  S.  Office of Management and Budget, Preparation and
Submission of Budget Estimates, Circular A-11, August 4, 1993
(revised), Section 35.1, p.  125. 

\3 Lee, Robert D., and Ronald W.  Johnson, Public Budgeting Systems
(Baltimore, Md:  University Park Press, 1973), pp.  238-248. 


   HISTORY AND DEVELOPMENT OF
   OBJECT CLASSES
------------------------------------------------------------ Letter :3

The object-of-expenditure perspective can be traced to the
development of the accounting discipline, with its insistence on
vouchers detailing the item purchased.  In this country, the concept
of a budget developed in local governments from this initial emphasis
on the approval of vouchers.  Budgets were intended to be financial
and accounting devices, in which detailed estimates of the items
needed to operate a governmental unit became the focus for both
review and disbursement.\4 The principal objective of the budget was
to "promote 'accountability' by preventing public funds from being
stolen, used for unauthorized purposes, or spent at uncontrolled
rates."\5

At the national level--notwithstanding the control orientation of the
constitutional requirement that "no money shall be drawn from the
Treasury but in consequence of appropriations made by law"\6 -- the
earliest federal appropriation acts did not emphasize objects of
expenditure.  For example, the general appropriation act of 1789 was
about 150 words in length and provided only four broad
authorizations.\7 In fact, the lack of specificity was the most
notable characteristic of early appropriation acts and laid the
foundation for a long-standing debate over the proper balance between
legislative control and executive flexibility.\8

During the federal government's first century, a variety of laws were
enacted to better define the Congress' exclusive "power of the
purse." Generally, these laws were reactions to real or perceived
abuses by the executive branch and were intended to "restore
executive respect for...appropriation laws."\9 Some of the most
notable examples include: 

  the requirement for specific appropriations, 31 U.S.C.  1301(a),
     originally passed in 1809, which stated that appropriations
     shall be applied only to the objects for which the
     appropriations were made;

  the prohibition of transfers between accounts, 31 U.S.C.  1532,
     originally passed in 1868, which ended commingling of current
     appropriations and diverting unexpended balances to different
     purposes;

  the cancellation of unexpended balances, 31 U.S.C.  1551,
     originally passed in 1874, which specified time periods after
     which unexpended balances were "covered into the Treasury"
     (i.e., lapsed); and, perhaps most importantly,

  the prohibition of "coercive deficiencies," 31 U.S.C.  1341,
     originally passed in 1870 and strengthened via amendments in
     1905 and 1906, which banned spending or commitments to spend in
     advance or in excess of appropriations.\10

This first century of appropriation law dealt not only with broad
questions of authority but also with more specific and basic
questions of control.  "Distrustful of the administration, (the
Congress) sought to leave as little as possible to executive
decision."\11 Object classifications, so well suited to a control
perspective, became the predominant approach to provide and define
budgetary authority.  Appropriation laws reflected greater and
greater detail to ensure that the executive branch did not spend
needlessly to achieve defined purposes.\12

The first comprehensive argument against object-of-expenditure
appropriations came in 1912 from President William Howard Taft's
Commission on Economy and Efficiency.  The Commission argued that the
Congress

     "...has not only assumed to settle questions of policy, but also
     through...minuteness of detail...has deprived the executive
     branch...of the exercise of discretion....While the purpose has
     been to prevent the misuse of power, the effect has been to
     relieve administrative officials of responsibility."\13

The Taft Commission opposed object-of-expenditure appropriations and
recommended a national budget process in which actual and estimated
expenditures would be supported by "the greatest detail in showing
what is the actual or prospective cost of things bought or to be
bought," but that "none of this class of items will appear in the
appropriations."\14

During the 1920s, two major pieces of legislation, when coupled with
the earlier reforms which had helped to curb administrative abuses,
allowed the Congress to begin to move away from object-of-expenditure
appropriations.  First, the Budget and Accounting Act of 1921--the
direct if somewhat belated result of the Taft Commission and commonly
considered the genesis of federal budgeting--required that the
President prepare and submit a budget covering the executive branch
and independent agencies.  This law also

  provided the statutory basis for "lump-sum
     appropriations...accompanied by statements showing, in such
     detail and form as may be necessary to inform Congress, the
     manner of expenditure of such appropriations;"

  created the Bureau of the Budget with the "authority to assemble,
     correlate, revise, reduce or increase the estimates of the
     several departments;" and

  created the General Accounting Office by consolidating the auditing
     and settlement functions of several Treasury Department
     offices.\15

Second, the Classification Act of 1923 provided the first systematic
personnel classification scheme for the federal government.\16 This
act required that positions be classified and graded according to
their duties and responsibilities, and that a standard pay schedule
be established for each class and grade, regardless of department. 
Through this legislation, the Congress eliminated the need to specify
individual positions and pay levels in separate appropriation acts. 

The effect of these changes, during the 1930s and thereafter, was not
only to reduce detail in appropriation acts, but also, gradually, to
free appropriations from their focus on specific items of
expenditure.  These reforms provided both "before-the-fact" control,
through centralized processes and standards, and "after-the-fact"
control, through independent reviews and audits of executive
expenditures.  Thus, the need for the Congress to control executive
actions directly via object-of-expenditure appropriations--coupled
with the practical difficulty of doing so given the rapid growth of
the federal government during this period--was lessened. 

This does not mean that object class data disappeared with
object-of-expenditure appropriations.\17 Although appropriations
began to reflect an organizational, functional, and project/activity
perspective, object class data were retained as subsidiary schedules
in budget presentations, providing the Congress with comparative
information on the "means" of public programs--the how, in addition
to the how much.\18

The Congress formally expressed its desire for "a budget based on
functions, activities and projects," rather than objects of
expenditure, with the passage of the Budget and Accounting Procedures
Act on September 12, 1950.\19

This act, the first substantive revision of the 1921 Budget and
Accounting Act, was intended to implement the budgetary
recommendations of the 1949 Hoover Commission, including specifically
the recommendation to enact "performance budgets." The Commission
believed that performance budgets "...would focus attention upon the
general character and relative importance of the work to be done, or
upon the service to be rendered, rather than upon the things to be
acquired...  (which) are, after all, only the means to an end."\20

Commenting on the intent of this legislation, the Chairman of the
Senate Committee on Expenditures in the Executive Departments said
that

     "The performance budget is essential to sound congressional
     action on appropriation requests....This does not mean that
     Congress should not examine carefully how much personal
     services, supplies, and equipment are needed, but emphasizes
     that Congress wants to know what work or service is to be
     accomplished and what that work or service will cost."\21

During consideration of this legislation, members of the House
Appropriations Committee proposed an amendment specifically designed
to ensure continued access to object-of-expenditure information,
which they believed was necessary for review and oversight of budget
requests.  This amendment was enacted as Section 102(c) of the act
and is codified at 31 U.S.C.  1104.  In defining the President's
authority to "prepare budgets of the United States Government," the
law states: 

     "The President shall include with the budget and proposed
     appropriations information on personnel and other objects of
     expenditure in the way that information was included in the
     budget for fiscal year 1950."\22

Thus, the 1950 Budget and Accounting Procedures Act not only
expressed the Congress' intent that, "The Budget shall set forth in
such form and detail as the President may determine...the functions
and activities of the Government"--in the idiom of the time, a
"performance budget"--but also formally enacted the requirement that
object-of-expenditure information be included in "the budget and
proposed appropriations."

Although this law has remained unchanged since 1950, the Congress
recently has reaffirmed its commitment to performance-based oversight
of the executive branch.  In the Chief Financial Officers Act of 1990
and the Government Performance and Results Act of 1993, the Congress
has provided a legislative foundation for developing reliable cost
information and performance data.  The former has already achieved
improvements in the accuracy and utility of financial data, while the
latter will use a building-block approach and pilot projects to
establish links between budgeted levels and performance.  The
implication of these initiatives on the need for and use of
object-based information within the federal budget process remains an
open question. 


--------------------
\4 Emmerich, Herbert and Joseph E.  McLean, "Symposium on Budget
Theory," in Government Budgeting:  Theory, Process, Politics, ed. 
Albert C.  Hyde and Jay M.  Shafritz (Oak Park, Il.:  Moore
Publishing Company, 1978), pp.  33-35; and Alan Walter Steiss, Public
Budgeting and Management (Lexington, Ma.:  Lexington Books, 1972), p. 
150. 

\5 Gross, Bertram M., "The New Systems Budgeting," in Government
Budgeting:  Theory, Process, Politics, op.  cit., p.  147. 

\6 Article I, section 9, clause 7, typically referred to as the
Appropriations Clause. 

\7 1 Stat.  95. 

\8 For discussions of the history of line item and lump sum budgets,
see Wilmerding, Lucius, Jr., The Spending Power:  A History of the
Efforts of Congress to Control Expenditures (New Haven, CT.:  Yale
University Press, 1943), and Louis Fisher, Presidential Spending
Power (Princeton, NJ:  Princeton University Press, 1975), pp.  59-74. 

\9 Wilmerding, op.  cit., p.  149. 

\10 For discussions of the history and implications of these actions
see Wilmerding, op.cit., pp.  73-76, 118-131, and 144-148; and also
Principles of Appropriation Law - Volume I, (GAO/OGC-91-5, July 1991)
pp.  2-20ff, 4-2ff, and 5-57ff; and Volume II, (GAO/OGC-92-13,
December 1992), pp.  6-9ff. 

\11 Wilmerding, op.cit., p.  149. 

\12 An example of such detail is contained in the 1920 appropriations
act for the Department of Agriculture.  Just within the Office of the
Secretary, 103 positions are specified--including eight different pay
grades for law clerks, 33 messenger boys, and "one tinner's helper."
(41 Stat.  235). 

\13 Commission on Economy and Efficiency, The Need for a National
Budget, U.S.  House of Representatives, 62d Congress, 2d session,
Document No.  854 (Washington, DC, 1912), p.72. 

\14 Ibid., p.211-212.  This call for change may have provoked the
first statutory requirement for object of expenditure information
within budget submissions.  The 1915 appropriation for the "civil
expenses of the Government" (38 Stat.  680, August 1, 1914)--the
forerunner to today's Treasury, Postal Service, and General
Government appropriations acts--contained the original general
provision which required statements of estimated and actual
expenditures "for each other object or class of expenditure" within
any general or lump sum appropriation request. 

\15 42 Stat.  20. 

\16 42 Stat.  1488. 

\17 In fact, the control focus merely shifted.  During the 1920s and
1930s, the Bureau of the Budget developed elaborate review processes
based on object-of-expenditure data to control (i.e., reduce) agency
budget requests.  See, for example, Allen Schick, "The Road to PBB: 
The Stages of Budget Reform," Public Administration Review (December,
1966). 

\18 For additional discussion on the use of object class data in
congressional budget and oversight processes, see Schick, Allen,
Budget Innovation in the States, (Washington, DC:  The Brookings
Institution, 1971), pp.  180-185; and Silverman, Eli B., "Public
Budgeting and Public Administration:  Enter the Legislature," in
Government Budgeting:  Theory, Process, Politics, op.  cit., pp. 
340-342. 

\19 64 Stat.  833. 

\20 Commission on Organization of the Executive Branch of the
Government, Budgeting and Accounting, February, 1949, p.  8. 

\21 Statement by Senator John L.  McClellan, 64 Cong.  Rec.  12245,
August 9, 1950. 

\22 31 U.S.C.  1104(b). 


   OBJECT CLASS EXPENDITURE TRENDS
------------------------------------------------------------ Letter :4

Included as appendixes to this letter are a variety of trend analyses
based on object class data.  After discussions with your office, we
focused on two questions. 

  Which object classes are growing, both in real terms and also as a
     share of total federal obligations? 

  Which departments and agencies, and which budget accounts, are
     responsible for the majority of fiscal year 1993 obligations
     within each object class? 

Since fiscal year 1971, all object series, but not all object
classes, have shown real growth.  Appendix II provides information on
the average annual growth rates and changing relative shares for
gross obligations within object series and classes. 

  As expected, object series 40 obligations, covering interest costs
     and "transfer payments," have steadily grown as a share of total
     federal obligations and at nearly twice (5.05 percent) the rate
     of growth for the U.S.  economy, as measured by the GDP (2.58
     percent).  All object classes within series 40, including
     obligations for grants, insurance, interest and refunds, have
     shown comparably high growth rates. 

  For object series 10, 20, and 30, representing what could be
     considered the federal government's "operating expenses,"
     overall real growth was less than half (1.09 percent) the rate
     of increase in U.S.  GDP (2.58 percent).  Specifically,
     obligations for personal services and benefits grew at an
     average annual rate of 1.25 percent; contractual services and
     supplies, 1.24 percent; and acquisition of capital assets, only
     0.41 percent.  Within these series, several object classes
     experienced very low or even negative real growth during this
     period, including personnel compensation (0.35 percent), travel
     and transportation of persons (0.14 percent), transportation of
     things (-1.55 percent), printing and reproduction (0.32
     percent), supplies and materials (-2.21 percent), land and
     structures (0.66 percent), and investments and loans (-1.86
     percent). 

Appendix III provides detail on those budget accounts, by object
class and major department, which obligated $100 million or more in
fiscal year 1993.  Although this threshold might appear to be
restrictive, it allowed identification of budget accounts which
collectively were responsible for 90 percent or more of gross
obligations in all object classes except three:  rent,
communications, and utilities (79 percent); travel and transportation
of persons (62 percent); and printing and reproduction (43 percent). 


   REDUCING ADMINISTRATIVE
   EXPENSES THROUGH OBJECT CLASS
   LIMITATIONS
------------------------------------------------------------ Letter :5

In 1993, the administration used, and some members of the Congress
proposed using, object class data as a means to reduce federal
administrative costs.  In Executive Order 12837, the administration
specified a subset of object class data as a means to determine an
"administrative expense base" for each department and agency, which
was then subject to required percentage reductions.  In several bills
introduced in the last session of the Congress, specific object
classes were defined as "administrative" or "overhead" expenses and
targeted for reductions.\23

These initiatives raise various issues, including the following. 

  Using object classifications as a proxy for administrative expenses
     poses serious definitional problems.  Object class data only
     address the things bought, not the reasons for the expenditures. 
     Thus, travel costs may be incurred for training sessions or
     field studies by nuclear facility inspectors; contractors may be
     employed for janitorial services or to operate a tracking
     facility for manned space missions; and equipment purchased
     might include postage machines or battleships.  In any practical
     sense, distinguishing mission from overhead costs through object
     classifications is highly problematic.\24

  Both the Executive Order and the congressional proposals specified
     a subset of object classes which, at least in recent years, have
     shown low growth and represent a declining share of total
     federal obligations.  As described in appendix IV, if the
     affected object classes are reconstructed using fiscal year 1976
     obligations as a base year, each proposal shows, subject to
     certain data limitations, a low, and in one case negative,
     average annual growth rate.  Also, as shown in appendix II,
     because the targeted object classes account for a declining
     share of total federal obligations, the effect of any reduction
     on total spending is minimized. 

  Lastly, there are uncertainties associated with using object class
     obligation limits to achieve net outlay effects.  As discussed
     above, controlling obligations in a specific object class does
     not necessarily prevent obligations being recorded against a
     different object class to achieve essentially the same result. 
     Also, as discussed in appendix I, object classes present gross
     obligations--that is, the separate obligations made by each
     appropriation account, including the "reobligation" of amounts
     received as reimbursements from other federal agencies. 
     Although the Executive Order and one of the congressional
     proposals attempted to control for this "double-counting," the
     difficulty of translating gross obligation limitations into
     lower net outlays remains. 


--------------------
\23 S.  1004, introduced by Senator Brown, "to limit amounts expended
by certain government entities for overhead expenses;" and S.  1524,
introduced by Senator Hutchison, and H.R.  3250, introduced by
Representative Lamar Smith, "to reduce administrative expenses."

\24 For a discussion of this and other definitional questions, see
Budget Issues:  Assessing Executive Order 12837 on Reducing
Administrative Expenses (GAO/AIMD-94-15, November 17, 1993). 


---------------------------------------------------------- Letter :5.1

We are sending copies of this report to the Chairman, Senate
Committee on Budget, the Chairman and Ranking Minority Member of the
House Committee on the Budget, and to other interested Members of the
Congress.  We will also make copies available to others upon request. 

If you have any questions, I can be reached at (202)512-9573.  Major
contributors to this report are listed in appendix V. 

Sincerely yours,

Paul L.  Posner
Director, Budget Issues


SCOPE AND METHODOLOGY
=========================================================== Appendix I

Information on the historical development and use of object
classifications was developed primarily through a literature search. 
For trend and budget account information presented in the appendixes
to this report, we obtained automated data from OMB.\1

We accumulated these data at the budget account level beginning with
the fiscal year 1973 budget submission, containing fiscal year 1971
actual object class obligation data.  We then aggregated these data
into an object class trendfile.  Although we did not verify these
data at the individual budget account level, we summarized and
reconciled total obligations within the trendfile--by fiscal year and
by object class--to published sources. 

It is important to note that object class data reflect reported gross
federal obligations.  For each budget account, departments and
agencies report total obligations, including obligations made to
other departments and agencies, which are then "reobligated" by the
receiving account.  For example, one agency may obligate funds to
another to obtain specific services (object class 25); the receiving
agency, in providing the services, may reobligate those funds for
salaries and equipment (object classes 11 and 31).  From a net
federal outlays perspective, this "double-counting" is eliminated by
recording intragovernmental transactions as offsets or deductions to
outlays.  However, from an object-of-expense perspective, recording
gross obligations more accurately reflects the types of objects
bought by each budget account and, by extension, the federal
government.  In fact, from the perspective of identifying the objects
bought by government, "net" object class obligations would be both
inappropriate and incomplete. 

For appendix II, we extracted from the trendfile actual year
obligations by account and summarized by object series and class. 
These data were converted to constant dollars using the GDP implicit
deflator reported in the OMB Historical Tables.  Although actual
inflation experienced by specific object classes may vary from that
calculated using the GDP deflator, the absence of relevant deflators
for each object class necessitated use of this general deflator.  A
general deflator does indicate how much spending has increased--in
terms of dollars of a given year--but not necessarily the amount of
goods and services bought or obtained.  Average annual growth rates
were calculated for each object series and class. 

For appendix III, we extracted from the trendfile actual fiscal year
1993 obligations by account and summarized by object class.  To
determine the largest obligating accounts by object class, we used an
arbitrary threshold of $100 million.  Any account with less than $100
million in obligations was excluded from the object class summary;
any account with more than $100 million in obligations was included
in the appropriate appendix III table.  Object series 10, personal
services and benefits, was excluded from this process; by definition,
the largest obligating accounts are those supporting the largest
number of federal employees. 

For appendix IV, we extracted from the trendfile the specific object
class data associated with each proposal to reduce federal
administrative costs.  We deleted obligations from certain
departments and agencies excluded by each proposal and, where
possible, also deleted other types or classes of obligations which
the proposals excluded.  However, as described in appendix IV, we
were not able to completely or reliably reconstruct the object class
base for any of the proposals over the entire trend period.  Some of
the exclusions included in the specific proposals--such as those for
certain obligations for "foreign assistance," research and
development contracts, or "program-related" costs--could not be
extracted from the trendfile due to data limitations. 


--------------------
\1 As part of their annual budget submission to OMB, departments and
agencies are required to report object class obligations.  OMB
collects and processes this information through the MAX budget system
(formerly called the Budget Preparation System), which is used to
prepare the President's annual budget request. 


FEDERAL GOVERNMENT OBLIGATIONS: 
FISCAL YEARS 1971-1993
========================================================== Appendix II

Trends in gross federal obligations, as expected, mirror better known
trends in net federal outlays.  Figure II.1 displays over the trend
period the shift in gross federal obligations toward object series
40--grants, insurance, interest, and refunds--and away from the other
object series--compensation and benefits, contractual services and
supplies, and capital acquisition.  This shift toward "transfer
payments" and away from the "operating expenses" of the federal
government has been well documented.  (See, for example, Budget
Policy:  Prompt Action Necessary to Avert Long-Term Damage to the
Economy (GAO/OCG-92-2, June 5, 1992).) Figure II.1 also shows the
significant but transient effect of object series 90 (object class
92) obligations associated with the resolution of insolvent thrift
institutions between fiscal years 1990 and 1992. 

   Figure II.1:  Share of
   Obligations by Object Series: 
   Fiscal Years 1971-1993

   (See figure in printed
   edition.)

Although relative shares have clearly changed over this period, a
somewhat different perspective is presented by the average annual
growth rates for the separate series and classes, as shown in table
II.1. 



                          Table II.1
           
              Object Class Average Annual Growth
                Rates: Fiscal Years 1971-1993

                                                        Real
                                                      growth
                                                        rate
Object                                              (Percent
class     Standard title                                   )
--------  ----------------------------------------  --------
Series    Personal Services and Benefits                1.25
 10
11.0      Personnel compensation                        0.35
12.0      Personnel benefits                            4.29
13.0      Benefits for former personnel                 2.98
Series    Contractual Services and Supplies             1.24
 20
21.0      Travel and transportation of persons          0.14
22.0      Transportation of things                     -1.55
23.0      Rent, communications and utilities            3.20
24.0      Printing and reproduction                     0.32
25.0      Consulting and other services                 2.98
26.0      Supplies and materials                       -2.21
Series    Acquisition of Capital Assets                 0.41
 30
31.0      Equipment                                     1.71
32.0      Land and structures                           0.66
33.0      Investments and loans                        -1.86
============================================================
          Subtotal: "Operating Expenses"                1.09
           (Object Series 10/20/30)
Series    Grants and Fixed Charges                      5.05
 40
41.0      Grants, subsidies and contributions           4.46
42.0      Insurance claims and indemnities              4.67
43.0      Interest and dividends                        6.62
44.0      Refunds                                      10.47
Series    Other Charges                                 7.29
 90
91.0      Unvouchered                                   2.02
92.0      Undistributed                                10.90
============================================================
          All Object Classes                            3.28
          U.S. Gross Domestic Product                   2.58
------------------------------------------------------------
Source:  OMB MAX budget system and the Economic Report of the
President

As shown in table II.1, all object series have shown some real growth
during this period, but object series 40 has experienced a
significantly higher growth rate over this period, 5.05 percent, than
the other object series.  Real growth in object series 10, 20, and 30
has been a relatively modest 1.25 percent, 1.24 percent, and 0.41
percent, respectively.  Overall, from 1971 through 1993, average
annual growth for these "operating expenses" of the federal
government has been 1.09 percent--less than one-half the growth rate
for the U.S.  economy (2.58 percent), as measured by the GDP.  Within
the separate object classes, the picture is equally varied, with some
"operating expenses" experiencing very low or even negative growth
rates (e.g., supplies and materials, investments and loans,
transportation of things, travel, printing, and personnel
compensation). 


   Figure II.2:  Share of
   Obligations for Object Series
   40:  Grants and Fixed Charges

   (See figure in printed
   edition.)


Figure II.2 displays the relative change in obligations for object
classes within series 40, with the most consistent and highest growth
associated with federal interest payments.  However, as shown in
table II.1, all series 40 object classes have experienced growth
substantially greater than that for the U.S.  economy in general. 

(See also appendix III, tables III.10 through III.13, for a listing
of fiscal year 1993 budget accounts obligating $100 million or more
in series 40 object classes.)


   Figure II.3:  Share of
   Obligations for Object Series
   10:  Personal Compensation and
   Benefits

   (See figure in printed
   edition.)


Obligations for object series 10 have steadily fallen as a share of
total federal obligations during this period (figure II.1), but have
shown an overall growth rate of 1.25 percent (table II.1).  Two
components of series 10, benefits for current and former personnel
(object classes 12 and 13), have principally accounted for this
growth--4.29 percent and 2.98 percent, respectively.  As figure II.3
shows, personnel compensation obligations have fallen during this
period from 80 percent of series 10 obligations to about 66 percent. 
Average annual growth for personnel compensation was only 0.35
percent during this period. 

The change in relative shares within this object series is
attributable to several factors, but most notably the 1985 decision
to finance on a full accrual basis military retirement benefits and,
in 1986, civilian employee benefits for those hired after 1983.  This
effectively increased agencies' current year obligations to the
employee retirement trust funds.  The unusual trendline which occurs
between 1980 and 1981 is due to changing conventions concerning the
object class recording of payments to the civil service retirement
and disability fund. 


   Figure II.4:  Share of
   Obligations for Object Series
   20:  Contractual Services and
   Supplies

   (See figure in printed
   edition.)


Some of the most significant changes in federal spending patterns
during this period have occurred in object series 20.  The shift
toward increased use of contractors (object class 25), for such
activities as management and professional support services and for
analytical, evaluative, engineering, and technical services, reflects
both the changing role of the federal government and the need to meet
this change through other than direct federal employment.  The
decline in obligations for supplies and materials is also related, as
more of these needs are fulfilled under contracts. 

As shown in table II.1, other object classes within this series show
negative or very low average growth rates, with the exception of
object class 23.  Obligations within this object class are spread
across many accounts and growth reflects both general increases in
rental and utility costs but also the impact of modern communications
capabilities and requirements. 

(See also appendix III, tables III.1 through III.6, for a listing of
fiscal year 1993 budget accounts obligating $100 million or more in
series 20 object classes.)


   Figure II.5:  Share of
   Obligations for Object Series
   30:  Acquisition of Capital
   Assets

   (See figure in printed
   edition.)


Object series 30 obligations show highly varying patterns over this
period.  Obligations for the purchase of land, buildings, and other
structures have been relatively constant, with an average annual
growth rate of only 0.66 percent (table II.1).  However, equipment
obligations by the Department of Defense (DOD) decreased following
the Vietnam War, then sharply increased from fiscal years 1981
through 1990, before falling off again.  Non-DOD equipment
obligations were rather stable during most of this period, with the
increase in fiscal year 1991 and thereafter due to higher obligations
by the foreign military sales trust fund.  Overall, equipment
acquisition has shown an average annual growth rate of 1.71 percent
during this period, or about two-thirds the rate of increase in the
gross domestic product. 

Since the mid-1970s, object class 33 obligations for stocks, bonds,
and other securities steadily fell, both as a share of object series
30 obligations and in real terms (-1.86 percent).  The upturn in
fiscal year 1993 obligations for these investments and loans was due
to (1) an increase of nearly $10 billion in the U.S.  quota reserve
with the International Monetary Fund, but which resulted in no net
budget outlays, and (2) a $3 billion increase over fiscal year 1992
in loan obligations from the Commodity Credit Corporation Fund. 

(See also appendix III, tables III.7 through III.9, for a listing of
fiscal year 1993 budget accounts obligating $100 million or more in
series 30 object classes.)


FISCAL YEAR 1993 BUDGET ACCOUNTS
OBLIGATING $100 MILLION OR MORE IN
SPECIFIC OBJECT CLASSES
========================================================= Appendix III

In this appendix, we present, by department and agency and by object
class, those budget accounts reporting actual fiscal year 1993 gross
obligations of $100 million or more.  This appendix was developed to
give some indication of which accounts were principally responsible
for federal spending within each object class in that fiscal year. 

The $100 million threshold was arbitrarily selected to limit the
number of accounts included in this appendix.  However, it proved not
to be restrictive with respect to identifying the "drivers" of each
object class.  As shown at the end of each table, the selected
accounts were collectively responsible for 90 percent or more of the
obligations within each object class in all cases except three: 
object class 23, rent, communications and utilities (table III.3, 79
percent); object class 21, travel and transportation of persons
(table III.1, 62 percent); and object class 26, printing and
reproduction (table III.6, 43 percent). 

A separate table is presented for each class except object series 10,
personal services and benefits.  Those object classes were excluded
because, by definition, the largest obligating accounts are those
supporting the largest number of employees.  For all other classes,
each appendix table lists the selected budget accounts in the order
in which they appear in the president's budget submission.  At the
end of each table, we summarize the amount of obligations included in
the table, the total fiscal year 1993 obligations for the object
class, and the percent of total obligations represented by the
accounts included in the table. 



                         Table III.1
           
                 Object Class 21: Travel and
                  Transportation of Persons

                    (Dollars in thousands)

Bureau/Agency/Fund      Account title            Obligations
----------------------  ----------------------  ------------
Department of Defense--Military
------------------------------------------------------------
Military Personnel      Military personnel,         $309,532
                         Air Force
Military Personnel      Military personnel,          359,572
                         Army
Military Personnel      Military personnel,          180,535
                         Navy
Military Personnel      National Guard               142,748
                         personnel, Army
Military Personnel      Reserve personnel,           132,495
                         Army
Military Personnel      Reserve personnel,           130,763
                         Navy
Operation and           Defense health program       132,380
 Maintenance
Operation and           Operation and                545,925
 Maintenance             maintenance, Air
                         Force
Operation and           Operation and                792,161
 Maintenance             maintenance, Army
Operation and           Operation and                347,498
 Maintenance             maintenance,
                         Defensewide
Operation and           Operation and                374,828
 Maintenance             maintenance, Navy
Research, Development,  Research, development,       144,600
 Test, and Evaluation    test, and evaluation,
                         Air Force
Research, Development,  Research, development,       106,887
 Test, and Evaluation    test, and evaluation,
                         Army
Revolving and           Defense business             579,796
 Management Funds        operations fund
============================================================
Total                                              4,279,720

Department of Transportation
------------------------------------------------------------
Federal Aviation        Operations                   106,090
 Administration

Department of Veterans Affairs
------------------------------------------------------------
Veterans Health         Medical care                 142,584
 Administration

Other Independent Agencies
------------------------------------------------------------
Postal Service          Postal Service fund          129,626
============================================================
Subtotal: Obligations                              4,658,020
 listed in table III.1
============================================================
Total fiscal year 1993                            $7,473,638
 obligations, object
 class 21, all
 accounts
Percent of total                                        62.3
 fiscal year 1993
 object class 21
 obligations
------------------------------------------------------------
Source:  OMB MAX budget system



                         Table III.2
           
              Object Class 22: Transportation of
                            Things

                    (Dollars in thousands)

Bureau/Agency/Fund      Account title            Obligations
----------------------  ----------------------  ------------
Department of Agriculture
------------------------------------------------------------
Farm Service Agency     Commodity Credit            $873,812
                         Corporation fund

Department of Defense--Military
------------------------------------------------------------
Military Personnel      Military personnel,          578,104
                         Air Force
Military Personnel      Military personnel,          785,140
                         Army
Military Personnel      Military personnel,          112,963
                         Marine Corps
Military Personnel      Military personnel,          408,841
                         Navy
Operation and           Operation and                423,416
 Maintenance             maintenance, Air
                         Force
Operation and           Operation and                763,958
 Maintenance             maintenance, Army
Operation and           Operation and                376,510
 Maintenance             maintenance,
                         Defensewide
Operation and           Operation and                290,221
 Maintenance             maintenance, Navy
Revolving and           Defense business           1,136,727
 Management Funds        operations fund
Revolving and           Navy management fund         598,772
 Management Funds
============================================================
Total                                              5,474,652

Department of State
------------------------------------------------------------
Administration of       Diplomatic and               112,215
 Foreign Affairs         consular programs

Other Independent Agencies
------------------------------------------------------------
Postal Service          Postal Service fund        3,658,819
Tennessee Valley        Tennessee Valley             121,294
 Authority               Authority fund
                         (Energy supply)
============================================================
Total                                              3,780,113
============================================================
Subtotal: Obligations                             10,240,792
 listed in table III.2
============================================================
Total fiscal year 1993                           $11,193,879
 obligations, object
 class 22, all
 accounts
Percent of total                                        91.5
 fiscal year 1993
 object class 22
 obligations
------------------------------------------------------------
Source:  OMB MAX budget system



                         Table III.3
           
            Object Class 23: Rent, Communications,
                        and Utilities

                    (Dollars in thousands)

Bureau/Agency/Fund      Account title            Obligations
----------------------  ----------------------  ------------
Department of Commerce
------------------------------------------------------------
National Oceanic and    Operations, research,       $109,461
 Atmospheric             and facilities
 Administration

Department of Defense--Military
------------------------------------------------------------
Family Housing          Family housing, Air          191,653
                         Force
Family Housing          Family housing, Army         279,584
Family Housing          Family housing, Navy         186,239
                         and Marine Corps
Operation and           Defense health program       143,075
 Maintenance
Operation and           Operation and              1,084,197
 Maintenance             maintenance, Air
                         Force
Operation and           Operation and              1,954,953
 Maintenance             maintenance, Army
Operation and           Operation and                416,316
 Maintenance             maintenance,
                         Defensewide
Operation and           Operation and                172,177
 Maintenance             maintenance, Marine
                         Corps
Operation and           Operation and                914,507
 Maintenance             maintenance, Navy
Revolving and           Defense business           2,286,726
 Management Funds        operations fund
============================================================
Total                                              7,629,427

Department of Energy
------------------------------------------------------------
Energy Programs         Uranium supply and           400,471
                         enrichment activities

Department of Health and Human Services, Social Security
------------------------------------------------------------
Social Security         Federal disability           532,820
                         insurance trust fund

Department of Justice
------------------------------------------------------------
Drug Enforcement        Salaries and expenses        127,087
 Administration
Federal Bureau of       Salaries and expenses        224,863
 Investigation           (Defense-related
                         activities)
General Administration  Working capital fund         288,384
Immigration and         Salaries and expenses        126,230
 Naturalization
 Service
Legal Activities        Salaries and expenses,       121,543
                         United States
                         Attorneys
============================================================
Total                                                888,107

Department of Labor
------------------------------------------------------------
Employment and          State unemployment           144,373
 Training                insurance and
 Administration          employment service
                         operations

Department of State
------------------------------------------------------------
Administration of       Acquisition and              168,604
 Foreign Affairs         maintenance of
                         buildings abroad
Administration of       Diplomatic and               217,460
 Foreign Affairs         consular programs
============================================================
Total                                                386,064

Department of Transportation
------------------------------------------------------------
Coast Guard             Operating expenses           154,873
                         (Defense-related
                         activities)
Federal Aviation        Operations                   431,713
 Administration
Office of the           Rental payments              133,470
 Secretary
============================================================
Total                                                720,056

Department of Veterans Affairs
------------------------------------------------------------
Departmental            General operating            161,342
 Administration          expenses
Veterans Health         Medical care                 467,459
 Administration
============================================================
Total                                                628,801

Department of the Treasury
------------------------------------------------------------
Departmental Offices    Working capital fund         108,751
Financial Management    Salaries and expenses        134,386
 Service
Internal Revenue        Information systems          248,752
 Service
Internal Revenue        Processing tax returns       238,310
 Service                 and assistance
Internal Revenue        Tax law enforcement          370,637
 Service
United States Customs   Salaries and expenses        167,257
 Service
============================================================
Total                                              1,268,093

Environmental Protection Agency
------------------------------------------------------------
Environmental           Abatement, control,          130,622
 Protection Agency       and compliance

General Services Administration
------------------------------------------------------------
Real Property           Federal buildings fund     2,257,198
 Activities

National Aeronautics and Space Administration
------------------------------------------------------------
National Aeronautics    Research and                 174,367
 and Space               development (Space
 Administration          flight, research, and
                         supporting
                         activities)

Other Independent Agencies
------------------------------------------------------------
Postal Service          Postal Service fund        1,138,337
Tennessee Valley        Tennessee Valley             107,708
 Authority               Authority fund
                         (Energy supply)
United States           United States                104,033
 Enrichment              Enrichment
 Corporation Fund        Corporation fund
United States           Salaries and expenses        106,898
 Information Agency
============================================================
Total                                              1,456,976

The Judiciary
------------------------------------------------------------
Courts of Appeals,      Salaries and expenses        432,598
 District Courts, and
 other Judicial
 Services
============================================================
Subtotal: Obligations                             17,159,434
 listed in table III.3
============================================================
Total fiscal year 1993                           $21,638,950
 obligations, object
 class 23, all
 accounts
Percent of total                                        79.3
 fiscal year 1993
 object class 23
 obligations
------------------------------------------------------------
Source:  OMB MAX budget system



                         Table III.4
           
                Object Class 24: Printing and
                         Reproduction

                    (Dollars in thousands)

Bureau/Agency/Fund      Account title            Obligations
----------------------  ----------------------  ------------
Department of Defense--Military
------------------------------------------------------------
Revolving and           Defense business            $222,961
 Management Funds        operations fund

Legislative Branch
------------------------------------------------------------
Government Printing     Government Printing          537,696
 Office                  Office revolving fund
============================================================
Subtotal: Obligations                                760,657
 listed in table III.4
============================================================
Total fiscal year 1993                            $1,786,014
 obligations, object
 class 24, all
 accounts
Percent of fiscal year                                  42.6
 1993 object class 24
 obligations
------------------------------------------------------------
Source:  OMB MAX budget system



                         Table III.5
           
            Object Class 25: Consulting and Other
                           Services

                    (Dollars in thousands)

Bureau/Agency/Fund      Account title            Obligations
----------------------  ----------------------  ------------
Department of Agriculture
------------------------------------------------------------
Agricultural Research   Agricultural Research       $160,681
 Service                 Service
Farm Service Agency     Administrative and           254,790
                         operating expenses
Farm Service Agency     Agricultural credit          227,097
                         insurance program
                         account
Farm Service Agency     Commodity Credit           1,336,008
                         Corporation fund
Forest Service          Forest and rangeland         114,911
                         protection
Forest Service          National forest system       391,672
Natural Resources       Watershed and flood          156,786
 Conservation Service    prevention operations
Rural Housing and       Rural housing                401,637
 Community Development   insurance fund
 Service                 program account
============================================================
Total                                              3,043,582

Department of Commerce
------------------------------------------------------------
National Oceanic and    Operations, research         604,311
 Atmospheric             and facilities
 Administration
Patent and Trademark    Salaries and expenses        102,189
 Office
============================================================
Total                                                706,500

Department of Defense--Civil
------------------------------------------------------------
Corps of Engineers--    Construction, general        607,430
 Civil
Corps of Engineers--    Flood control and            236,533
 Civil                   coastal emergencies
Corps of Engineers--    Flood control,               123,785
 Civil                   Mississippi River and
                         tributaries
Corps of Engineers--    Harbor maintenance           446,434
 Civil                   trust fund
Corps of Engineers--    Operation and                562,562
 Civil                   maintenance, general
Corps of Engineers--    Revolving fund             2,256,779
 Civil
Education Benefits      Education benefits           182,358
                         fund
============================================================
Total                                              4,415,881

Department of Defense--Military
------------------------------------------------------------
Family Housing          Family housing, Air          436,665
                         Force
Family Housing          Family housing, Army       1,012,947
Family Housing          Family housing, Navy         479,084
                         and Marine Corps
Military Construction   Base realignment and       1,534,701
                         closure account
Military Construction   Military construction,       766,745
                         Army
Operation and           Defense health program    11,779,125
 Maintenance
Operation and           Defense reinvestment         247,786
 Maintenance             for economic growth
Operation and           Humanitarian                 147,170
 Maintenance             assistance
Operation and           Operation and             10,261,406
 Maintenance             maintenance, Air
                         Force
Operation and           Operation and                287,527
 Maintenance             maintenance, Air
                         Force Reserve
Operation and           Operation and                603,497
 Maintenance             maintenance, Air
                         National Guard
Operation and           Operation and              9,944,770
 Maintenance             maintenance, Army
Operation and           Operation and                460,053
 Maintenance             maintenance, Army
                         National Guard
Operation and           Operation and                296,103
 Maintenance             maintenance, Army
                         Reserve
Operation and           Operation and              4,125,321
 Maintenance             maintenance,
                         Defensewide
Operation and           Operation and                774,334
 Maintenance             maintenance, Marine
                         Corps
Operation and           Operation and             13,766,717
 Maintenance             maintenance, Navy
Operation and           Operation and                334,071
 Maintenance             maintenance, Navy
                         Reserve
Operation and           Real property              1,552,046
 Maintenance             maintenance, Defense
Procurement             Aircraft procurement,        917,186
                         Army
Procurement             Aircraft procurement,        120,662
                         Navy
Procurement             Chemical agents and          362,950
                         munitions
                         destruction, Army
Procurement             Missile procurement,         654,390
                         Army
Procurement             Other procurement,         1,050,454
                         Army
Procurement             Other procurement,           241,405
                         Navy
Procurement             Procurement of               450,077
                         ammunition, Army
Procurement             Procurement of weapons       686,060
                         and tracked combat
                         vehicles, Army
Procurement             Shipbuilding and             374,761
                         conversion, Navy
Procurement             Weapons procurement,         121,625
                         Air Force
Procurement             Weapons procurement,         233,401
                         Navy
Research, Development,  Developmental test and       265,288
 Test, and Evaluation    evaluation, Defense
Research, Development,  Research, development,    13,581,496
 Test, and Evaluation    test, and evaluation,
                         Air Force
Research, Development,  Research, development,     5,570,287
 Test, and Evaluation    test, and evaluation,
                         Army
Research, Development,  Research, development,     9,253,821
 Test, and Evaluation    test, and evaluation,
                         Defensewide
Research, Development,  Research, development,     8,614,519
 Test, and Evaluation    test, and evaluation,
                         Navy
Revolving and           Army conventional            302,345
 Management Funds        ammunition working
                         capital fund
Revolving and           Defense business          19,454,017
 Management Funds        operations fund
Revolving and           National defense             455,181
 Management Funds        sealift fund
============================================================
Total                                            121,519,993

Department of Education
------------------------------------------------------------
Departmental            Program administration       127,331
 Management
Office of Educational   Education research,          123,178
 Research and            statistics, and
 Improvement             improvement
Office of               Federal family               151,705
 Postsecondary           education loan
 Education               liquidating account
============================================================
Total                                                402,214

Department of Energy
------------------------------------------------------------
Atomic Energy Defense   Defense environmental      3,876,042
 Activities              restoration and waste
                         management
Atomic Energy Defense   Defense nuclear waste        100,000
 Activities              disposal
Atomic Energy Defense   Materials support and      2,347,594
 Activities              other Defense
                         programs
Atomic Energy Defense   Weapons activities         5,375,465
 Activities              (atomic energy
                         defense activities)
Departmental            Departmental                 180,707
 Administration          administration
Energy Programs         Energy conservation          291,098
Energy Programs         Energy supply,             2,532,997
                         research and
                         development
                         activities
Energy Programs         Fossil energy research       366,212
                         and development
Energy Programs         General science and          625,528
                         research activities
Energy Programs         Naval petroleum and          234,130
                         oil shale reserves
Energy Programs         Nuclear waste disposal       232,741
                         fund
Energy Programs         SPR petroleum account        253,421
                         (Defense-related
                         activities)
Energy Programs         Strategic petroleum          176,129
                         reserve (Defense-
                         related activities)
Energy Programs         Uranium supply and           605,450
                         enrichment activities
Power Marketing         Bonneville Power           2,786,119
 Administration          Administration fund
Power Marketing         Construction,                236,508
 Administration          rehabilitation,
                         operation, and
                         maintenance, Western
                         Area Power
                         Administration
============================================================
Total                                             20,220,141

Department of Health and Human Services, except Social
Security
------------------------------------------------------------
Assistant Secretary     Service, supply, and         244,748
 for Health              other funds
Centers for Disease     Disease control,             214,198
 Control and             research, and
 Prevention              training
Food and Drug           Salaries and expenses        133,347
 Administration
Health Care Financing   Program management         1,797,315
 Administration
Health Resources and    Health resources and         154,215
 Services                services
 Administration
National Institutes of  National Institutes of     1,901,028
 Health                  Health
Office of the           General departmental         120,320
 Secretary               management
Substance Abuse and     Substance abuse and          144,424
 Mental Health           mental health
 Services                services
 Administration
============================================================
Total                                              4,709,595

Department of Health and Human Services, Social Security
------------------------------------------------------------
Social Security         Federal disability         1,413,164
                         insurance trust fund

Department of Housing and Urban Development
------------------------------------------------------------
Housing Programs        FHA mutual mortgage          255,645
                         insurance program
                         account
Housing Programs        General and special          187,000
                         risk program account
Management and          Salaries and expenses,       119,216
 Administration          including transfer of
                         funds (community
                         development)
============================================================
Total                                                561,861

Department of Justice
------------------------------------------------------------
Drug Enforcement        Salaries and expenses        208,561
 Administration
Federal Bureau of       Salaries and expenses        234,575
 Investigation           (Defense-related
                         activities)
Federal Prison System   Buildings and                428,185
                         facilities
Federal Prison System   Salaries and expenses        274,397
Immigration and         Immigration                  299,795
 Naturalization          examinations fee
 Service
Immigration and         Immigration user fee         227,101
 Naturalization
 Service
Immigration and         Salaries and expenses        258,971
 Naturalization
 Service
Interagency Law         Organized crime drug         385,204
 Enforcement             enforcement
Legal Activities        Assets forfeiture fund       470,474
Legal Activities        Salaries and expenses,       112,124
                         general legal
                         activities
Legal Activities        Support of United            268,653
                         States prisoners
Radiation Exposure      Payment to radiation         170,750
 Compensation            exposure compensation
                         fund
============================================================
Total                                              3,338,790

Department of Labor
------------------------------------------------------------
Bureau of Labor         Salaries and expenses        103,484
 Statistics
Employment and          Unemployment trust           171,644
 Training                fund (Training and
 Administration          employment)
============================================================
Total                                                275,128

Department of State
------------------------------------------------------------
Administration of       Acquisition and              253,441
 Foreign Affairs         maintenance of
                         buildings abroad
Administration of       Diplomatic and               705,626
 Foreign Affairs         consular programs
============================================================
Total                                                959,067

Department of the Interior
------------------------------------------------------------
Bureau of Indian        Operation of Indian          554,826
 Affairs                 programs
                         (conservation and
                         land management)
Bureau of Land          Management of public         171,984
 Management              lands and resources
Bureau of Reclamation   Lower Colorado River         112,184
                         Basin development
                         fund
Bureau of Reclamation   Operation and                134,857
                         maintenance
Geological Survey       Surveys,                     123,323
                         investigations, and
                         research
National Park Service   Construction                 198,895
National Park Service   Operation of the             154,794
                         national park system
============================================================
Total                                              1,450,863

Department of Treasury
------------------------------------------------------------
Bureau of the Public    Administering the            168,563
 Debt                    public debt
Internal Revenue        Information systems          357,711
 Service
Internal Revenue        Tax law enforcement          112,838
 Service
United States Customs   Salaries and expenses        232,946
 Service
============================================================
Total                                                872,058

Department of Transportation
------------------------------------------------------------
Coast Guard             Operating expenses           543,113
                         (Defense-related
                         activities)
Federal Aviation        Facilities and             1,348,055
 Administration          equipment (airport
                         and airway trust
                         fund)
Federal Aviation        Operations                   438,023
 Administration
Federal Aviation        Research, engineering        143,553
 Administration          and development
                         (airport and airway
                         trust fund)
Federal Highway         Federal-aid highways         304,901
 Administration
Federal Transit         Trust fund share of        1,134,150
 Administration          expenses
Maritime                Ready reserve force          337,353
 Administration
Maritime                Vessel operations            130,076
 Administration          revolving fund
Research and Special    Working capital fund,        166,915
 Programs                Volpe National
 Administration          Transportation
                         Systems Center
============================================================
Total                                              4,546,139

Department of Veterans Affairs
------------------------------------------------------------
Veterans Health         Medical care               1,605,766
 Administration

Funds Appropriated to the President
------------------------------------------------------------
Agency for              Functional development       264,864
 International           assistance program
 Development
International           Assistance for the new       186,569
 Peacekeeping,           independent States of
 Regional Security and   the former Soviet
 Democracy Programs      Union
International           Assistance to Central        102,369
 Peacekeeping,           and Eastern Europe
 Regional Security and   and other
 Democracy Programs
Military Sales          Foreign military sales     3,082,167
 Programs                trust fund
============================================================
Total                                              3,635,969

General Services Administration
------------------------------------------------------------
Information Resources   Information technology     1,070,827
 Management Service      fund
Personal Property       General supply fund          146,926
 Activities
Real Property           Federal buildings fund     1,884,710
 Activities
============================================================
Total                                              3,102,463

Legislative Branch
------------------------------------------------------------
House of                Salaries and expenses        670,127
 Representatives
Senate                  Senators' official           193,754
                         personnel and office
                         expense account
============================================================
Total                                                863,881

National Aeronautics and Space Administration
------------------------------------------------------------
National Aeronautics    Research and               6,822,391
 and Space               development (Space
 Administration          flight, research, and
                         supporting
                         activities)
National Aeronautics    Space flight, control,     5,001,073
 and Space               and data
 Administration          communications
============================================================
Total                                             11,823,464

Office of Personnel Management
------------------------------------------------------------
Office of Personnel     Employees health          14,546,364
 Management              benefits fund
Office of Personnel     Employees life             1,308,958
 Management              insurance fund
============================================================
Total                                             15,855,322

Other Independent Agencies
------------------------------------------------------------
Federal Emergency       Disaster relief              508,454
 Management Agency
Federal Emergency       Emergency management         137,919
 Management Agency       planning and
                         assistance (Defense-
                         related activities)
Federal Emergency       National flood               279,646
 Management Agency       insurance fund
National Science        Research and related         246,603
 Foundation              activities (Defense-
                         related activities)
Nuclear Regulatory      Salaries and expenses        212,527
 Commission
Postal Service          Postal Service fund        1,091,716
Resolution Trust        RTC revolving fund           908,169
 Corporation
Tennessee Valley        Tennessee Valley           1,649,662
 Authority               Authority fund
                         (Energy supply)
United States           United States                460,706
 Enrichment              Enrichment
 Corporation Fund        Corporation fund
United States           Salaries and expenses        100,106
 Information Agency
============================================================
Total                                              5,595,508

Small Business Administration
------------------------------------------------------------
Small Business          Business loan program        116,965
 Administration          account
Small Business          Disaster loan program        168,000
 Administration          account
============================================================
Total                                                284,965

The Judiciary
------------------------------------------------------------
Courts of Appeals,      Defender services            136,086
 District Courts, and
 Other Judicial
 Services
Courts of Appeals,      Salaries and expenses        173,386
 District Courts, and
 Other Judicial
 Services
============================================================
Total                                                309,472
============================================================
Subtotal: Obligations                            213,494,797
 listed in table III.5
============================================================
Total fiscal year 1993                          $222,425,817
 obligations, object
 class 25, all
 accounts
Percent of total                                        96.0
 fiscal year 1993
 object class 25
 obligations
------------------------------------------------------------
Source:  OMB MAX budget system



                         Table III.6
           
           Object Class 26: Supplies and Materials

                    (Dollars in thousands)

Bureau/Agency/Fund      Account title            Obligations
----------------------  ----------------------  ------------
Department of Agriculture
------------------------------------------------------------
Agricultural Marketing  Funds for                   $505,808
 Service                 strengthening
                         markets, income, and
                         supply (section 32)
Farm Service Agency     Commodity Credit           2,378,534
                         Corporation fund
Food and Consumer       Emergency food               120,000
 Service                 assistance program
Food and Consumer       State child nutrition        228,209
 Service                 programs
============================================================
Total                                              3,232,551

Department of Defense--Military
------------------------------------------------------------
Military Personnel      National Guard               122,717
                         personnel, Army
Operation and           Defense health program     1,310,306
 Maintenance
Operation and           Operation and              4,075,616
 Maintenance             maintenance, Air
                         Force
Operation and           Operation and                293,231
 Maintenance             maintenance, Air
                         Force Reserve
Operation and           Operation and                753,176
 Maintenance             maintenance, Air
                         National Guard
Operation and           Operation and              3,746,116
 Maintenance             maintenance, Army
Operation and           Operation and                696,238
 Maintenance             maintenance, Army
                         National Guard
Operation and           Operation and                142,025
 Maintenance             maintenance, Army
                         Reserve
Operation and           Operation and                405,960
 Maintenance             maintenance,
                         Defensewide
Operation and           Operation and                713,268
 Maintenance             maintenance, Marine
                         Corps
Operation and           Operation and              3,902,360
 Maintenance             maintenance, Navy
Operation and           Operation and                254,451
 Maintenance             maintenance, Navy
                         Reserve
Procurement             Aircraft procurement,      1,004,705
                         Navy
Procurement             Missile procurement,         575,834
                         Army
Procurement             Other procurement,         1,697,953
                         Navy
Procurement             Procurement of               518,912
                         ammunition, Army
Procurement             Procurement of weapons       126,429
                         and tracked combat
                         vehicles, Army
Procurement             Procurement, Marine          250,000
                         Corps
Procurement             Weapons procurement,       1,388,586
                         Navy
Research, Development,  Research, development,       230,400
 Test, and Evaluation    test, and evaluation,
                         Air Force
Research, Development,  Research, development,       211,595
 Test, and Evaluation    test, and evaluation,
                         Army
Revolving and           Army conventional          1,370,397
 Management Funds        ammunition working
                         capital fund
Revolving and           Defense business          15,759,012
 Management Funds        operations fund
============================================================
Total                                             39,549,287

Department of Health and Human Services, except Social
Security
------------------------------------------------------------
Assistant Secretary     Service, supply, and         130,924
 for Health              other funds
Centers for Disease     Disease control,             204,095
 Control and             research, and
 Prevention              training
Indian Health Services  Indian Health Services       110,539
National Institutes of  National Institutes of       121,980
 Health                  Health
============================================================
Total                                                567,538

Department of Justice
------------------------------------------------------------
Federal Prison System   Federal Prison               227,552
                         Industries,
                         Incorporated
Federal Prison System   Salaries and expenses        196,119
============================================================
Total                                                423,671

Department of Transportation
------------------------------------------------------------
Coast Guard             Operating expenses           384,394
                         (Defense-related
                         activities)

Department of Veterans Affairs
------------------------------------------------------------
Departmental            Supply fund                  498,196
 Administration
Veterans Health         Canteen service              133,067
 Administration          revolving fund
Veterans Health         Medical care               2,074,628
 Administration
============================================================
Total                                              2,705,891

Department of the Treasury
------------------------------------------------------------
Department of the       Bureau of Engraving          116,023
 Treasury                and Printing fund
United States Mint      Numismatic public            311,491
                         enterprise fund
============================================================
Total                                                427,514

Funds Appropriated to the President
------------------------------------------------------------
Military Sales          Foreign military sales     1,499,353
 Programs                trust fund

General Services Administration
------------------------------------------------------------
Personal Property       General supply fund        1,997,309
 Activities

National Aeronautics and Space Administration
------------------------------------------------------------
National Aeronautics    Research and                 185,363
 and Space               development (space
 Administration          flight, research, and
                         supporting
                         activities)

Other Independent Agencies
------------------------------------------------------------
Postal Service          Postal Service fund          993,150
Tennessee Valley        Tennessee Valley           1,543,434
 Authority               Authority fund
                         (energy supply)
United States           United States                125,789
 Enrichment              Enrichment
 Corporation Fund        Corporation fund
============================================================
Total                                              2,662,373
============================================================
Subtotal: Obligations                             53,635,244
 listed in table III.6
============================================================
Total fiscal year 1993                           $57,144,073
 obligations, object
 class 26, all
 accounts
Percent of total                                        93.9
 fiscal year 1993
 object class 26
 obligations
------------------------------------------------------------
Source:  OMB MAX budget system



                         Table III.7
           
                  Object Class 31: Equipment

                    (Dollars in thousands)

Bureau/Agency/Fund      Account title            Obligations
----------------------  ----------------------  ------------
Department of Commerce
------------------------------------------------------------
National Oceanic and    Operations, research,       $109,855
 Atmospheric             and facilities
 Administration

Department of Defense--Military
------------------------------------------------------------
Operation and           Defense health program       350,525
 Maintenance
Operation and           Operation and                503,060
 Maintenance             maintenance, Air
                         Force
Operation and           Operation and                266,581
 Maintenance             maintenance, Army
Operation and           Operation and                168,255
 Maintenance             maintenance,
                         Defensewide
Operation and           Operation and              1,701,562
 Maintenance             maintenance, Navy
Operation and           Operation and                119,432
 Maintenance             maintenance, Navy
                         Reserve
Procurement             Aircraft procurement,      9,609,440
                         Air Force
Procurement             Aircraft procurement,        848,626
                         Army
Procurement             Aircraft procurement,      4,935,226
                         Navy
Procurement             Missile procurement,         356,328
                         Army
Procurement             National guard and         2,146,605
                         reserve equipment
Procurement             Other procurement, Air     8,430,922
                         Force
Procurement             Other procurement,         2,198,545
                         Army
Procurement             Other procurement,         3,419,713
                         Navy
Procurement             Procurement of weapons       497,103
                         and tracked combat
                         vehicles, Army
Procurement             Procurement,               2,474,738
                         Defensewide
Procurement             Procurement, Marine          665,745
                         Corps
Procurement             Shipbuilding and           8,112,493
                         conversion, Navy
Procurement             Weapons procurement,       4,270,718
                         Air Force
Procurement             Weapons procurement,       2,208,503
                         Navy
Research, Development,  Research, development,       152,855
 Test, and Evaluation    test, and evaluation,
                         Army
Research, Development,  Research, development,       245,624
 Test, and Evaluation    test, and evaluation,
                         Defensewide
Revolving and           Defense business           1,104,467
 Management Funds        operations fund
Revolving and           National defense           2,463,532
 Management Funds        sealift fund
============================================================
Total                                             57,250,598

Department of Energy
------------------------------------------------------------
Atomic Energy Defense   Defense environmental        133,001
 Activities              restoration and waste
                         management
Atomic Energy Defense   Materials support and        142,345
 Activities              other Defense
                         programs
Atomic Energy Defense   Weapons activities           174,879
 Activities              (atomic energy
                         defense activities)
Energy Programs         General science and          119,885
                         research activities
============================================================
Total                                                570,110

Department of Justice
------------------------------------------------------------
Federal Bureau of       Salaries and expenses        286,842
 Investigation           (Defense-related
                         activities)

Department of the Treasury
------------------------------------------------------------
Internal Revenue        Information systems          280,202
 Service

Department of Transportation
------------------------------------------------------------
Coast Guard             Acquisition,                 130,788
                         construction, and
                         improvements
                         (Defense-related
                         activities)
Federal Aviation        Facilities and               623,936
 Administration          equipment (airport
                         and airway trust
                         fund)
Maritime                Ready reserve force          264,163
 Administration
============================================================
Total                                              1,018,887

Department of Veterans Affairs
------------------------------------------------------------
Departmental            Supply fund                  183,513
 Administration
Veterans Health         Medical care                 530,959
 Administration
============================================================
Total                                                714,472

Funds Appropriated to the President
------------------------------------------------------------
Military Sales          Foreign military sales     8,684,000
 Programs                trust fund
Military Sales          Special defense              222,686
 Programs                acquisition fund
============================================================
Total                                              8,906,686

General Services Administration
------------------------------------------------------------
Personal Property       General supply fund          370,756
 Activities

National Aeronautics and Space Administration
------------------------------------------------------------
National Aeronautics    Research and                 182,876
 and Space               development (Space
 Administration          flight, research, and
                         supporting activities

Other Independent Agencies
------------------------------------------------------------
Postal Service          Postal Service fund          795,942
Tennessee Valley        Tennessee Valley           2,507,085
 Authority               Authority fund
                         (Energy supply)
============================================================
Total                                              3,303,027
============================================================
Subtotal: Obligations                             72,994,311
 listed in table III.7
============================================================
Total fiscal year 1993                           $76,640,152
 obligations, object
 class 31, all
 accounts
Percent of total                                        95.2
 fiscal year 1993
 object class 31
 obligations
------------------------------------------------------------
Source:  OMB MAX budget system



                         Table III.8
           
             Object Class 32: Land and Structures

                    (Dollars in thousands)

Bureau/Agency/Fund      Account title            Obligations
----------------------  ----------------------  ------------
Department of Defense--Civil
------------------------------------------------------------
Corps of Engineers--    Construction, general       $508,695
 Civil
Corps of Engineers--    Operation and                184,842
 Civil                   maintenance, general
============================================================
Total                                                693,537

Department of Defense--Military
------------------------------------------------------------
Family Housing          Family housing, Air          494,027
                         Force
Family Housing          Family housing, Army         132,785
Family Housing          Family housing, Navy         148,929
                         and Marine Corps
Military Construction   Military construction,     1,010,450
                         Air Force
Military Construction   Military construction,       169,809
                         Air National Guard
Military Construction   Military construction,     1,429,282
                         Army
Military Construction   Military construction,       193,914
                         Army National Guard
Military Construction   Military construction,       442,133
                         Defensewide
Military Construction   Military construction,       631,772
                         Navy
Military Construction   North Atlantic Treaty        129,748
                         Organization
                         infrastructure
Operation and           Operation and                152,575
 Maintenance             maintenance, Army
============================================================
Total                                              4,935,424

Department of Energy
------------------------------------------------------------
Atomic Energy Defense   Defense environmental        539,978
 Activities              restoration and waste
                         management
Atomic Energy Defense   Materials support and        121,793
 Activities              other Defense
                         programs
Atomic Energy Defense   Weapons activities           204,263
 Activities              (atomic energy
                         defense activities)
Energy Programs         Energy supply, R&D           305,836
                         activities
Energy Programs         General science and          511,796
                         research activities
============================================================
Total                                              1,683,666

Department of Health and Human Services, except Social
Security
------------------------------------------------------------
Indian Health Services  Indian health                113,845
                         facilities

Department of Housing and Urban Development
------------------------------------------------------------
Housing Programs        FHA general and              669,301
                         special risk
                         insurance funds
                         liquidating account
Housing Programs        FHA mutual mortgage        3,897,932
                         and cooperative
                         housing insurance
                         funds liquidating
                         account
============================================================
Total                                              4,567,233

Department of Justice
------------------------------------------------------------
Federal Bureau of       Salaries and expenses        103,408
 Investigation           (Defense-related
                         activities)

Department of Transportation
------------------------------------------------------------
Federal Aviation        Facilities and               276,156
 Administration          equipment (airport
                         and airway trust
                         fund)
Federal Highway         Federal-aid highways         190,100
 Administration
============================================================
Total                                                466,256

Department of Veterans Affairs
------------------------------------------------------------
Construction            Construction, major          414,160
                         projects
Construction            Construction, minor          130,674
                         projects
Veterans Health         Medical care                 211,138
 Administration
============================================================
Total                                                755,972

Department of the Interior
------------------------------------------------------------
Bureau of Reclamation   Construction program         104,724

General Services Administration
------------------------------------------------------------
Real Property           Federal buildings fund       398,694
 Activities

National Aeronautics and Space Administration
------------------------------------------------------------
National Aeronautics    Construction of              374,219
 and Space               facilities (space
 Administration          flight, research, and
                         supporting
                         activities)

Other Independent Agencies
------------------------------------------------------------
Postal Service          Postal Service fund          378,111
============================================================
Subtotal: Obligations                             14,575,089
 listed in table III.8
============================================================
Total fiscal year 1993                           $16,126,465
 obligations, object
 class 32, all
 accounts
Percent of total                                        90.4
 fiscal year 1993
 object class 32
 obligations
------------------------------------------------------------
Source:  OMB MAX budget system



                         Table III.9
           
            Object Class 33: Investments and Loans

                    (Dollars in thousands)

Bureau/Agency/Fund      Account title            Obligations
----------------------  ----------------------  ------------
Department of Agriculture
------------------------------------------------------------
Farm Service Agency     Commodity Credit          $9,089,941
                         Corporation fund
Farm Service Agency     Commodity Credit             793,391
                         Corporation
                         guaranteed loans
                         liquidating account
Rural Utilities         Rural Telephone Bank         177,395
 Service                 liquidating account
============================================================
Total                                             10,060,727

Department of Housing and Urban Development
------------------------------------------------------------
Government National     Guarantees of                651,062
 Mortgage Association    mortgage-backed
                         securities
                         liquidating account
Housing Programs        FHA general and            1,005,061
                         special risk
                         insurance funds
                         liquidating account
Housing Programs        FHA mutual mortgage          926,052
                         and cooperative
                         housing insurance
                         funds liquidating
                         account
============================================================
Total                                              2,582,175

Department of Veterans Affairs
------------------------------------------------------------
Veterans Benefits       Guaranty and indemnity       404,588
 Administration          fund liquidating
                         account
Veterans Benefits       Loan guaranty              1,827,733
 Administration          revolving fund
                         liquidating account
============================================================
Total                                              2,232,321

Funds Appropriated to the President
------------------------------------------------------------
International Monetary  Maintenance of value         754,212
 Programs                adjustments,
                         International
                         Monetary Fund
International Monetary  United States quota,      10,806,081
 Programs                International
                         Monetary Fund
Multilateral            Contribution to the          103,893
 Assistance              African Development
                         Fund
Multilateral            Contribution to the        1,124,462
 Assistance              International
                         Development
                         Association
============================================================
Total                                             12,788,648

Other Independent Agencies
------------------------------------------------------------
Export-Import Bank of   Export-Import Bank of        429,061
 the United States       the United States
                         liquidating account
National Credit Union   Central liquidity            124,364
 Administration          facility
National Credit Union   Credit union share           159,574
 Administration          insurance fund
============================================================
Total                                                712,999

Small Business Administration
------------------------------------------------------------
Small Business          Business loan fund           616,743
 Administration          liquidating account
============================================================
Subtotal: Obligations                             28,993,613
 listed in table III.9
============================================================
Total fiscal year 1993                           $30,083,856
 obligations, object
 class 33, all
 accounts
Percent of total                                        96.4
 fiscal year 1993
 object class 33
 obligations
------------------------------------------------------------
Source:  OMB MAX budget system



                         Table III.10
           
           Object Class 41: Grants, Subsidies, and
                        Contributions

                    (Dollars in thousands)

Bureau/Agency/Fund      Account title            Obligations
----------------------  ----------------------  ------------
Department of Agriculture
------------------------------------------------------------
Cooperative State       Cooperative state           $429,900
 Research Service        research service
Extension Service       Extension service            425,526
Farm Service Agency     Agricultural credit          176,686
                         insurance program
                         account
Farm Service Agency     Commodity Credit           9,258,927
                         Corporation fund
Farm Service Agency     Commodity Credit             535,680
                         Corporation loans
                         program account
Farm Service Agency     Conservation reserve       1,683,295
                         program
Farm Service Agency     Salaries and expenses        582,766
Food and Consumer       Food donations               160,728
 Service                 programs for selected
                         groups
Food and Consumer       Food Stamp program        23,629,296
 Service
Food and Consumer       Nutrition assistance       1,040,175
 Service                 for Puerto Rico
Food and Consumer       Special supplemental       2,923,492
 Service                 food program for
                         women, infants, and
                         children
Food and Consumer       State child nutrition      6,565,206
 Service                 programs
Forest Service          Forest Service               308,549
                         permanent
                         appropriations
International           Public Law 480 Grants      1,188,874
 Agricultural Trade      -Titles I, II, and
 Service                 III
International           Public Law 480 Title I       377,690
 Agricultural Trade      Food for Progress
 Service                 Credits, program
                         account
International           Public Law 480 program       361,196
 Agricultural Trade      account
 Service
Natural Resources       Agricultural                 191,779
 Conservation Service    conservation program
Rural Housing and       Rental assistance            404,110
 Community Development   grants
 Service
Rural Housing and       Rural housing                638,557
 Community Development   insurance fund
 Service                 program account
Rural Utilities         Rural development            103,440
 Service                 insurance fund
                         program account
Rural Utilities         Rural electrification        210,262
 Service                 and telephone loans
                         program account
Rural Utilities         Rural water and waste        423,865
 Service                 disposal grants
============================================================
Total                                             51,619,999

Department of Commerce
------------------------------------------------------------
Economic Development    Economic development         304,247
 Administration          assistance programs
National Oceanic and    Operations, research,        236,885
 Atmospheric             and facilities
 Administration
 Total                                           541,132

Department of Defense--Military
------------------------------------------------------------
Operation and           Operation and                112,467
 Maintenance             maintenance,
                         Defensewide
Research, Development,  Research, development,       256,301
 Test, and Evaluation    test, and evaluation,
                         Navy
============================================================
Total                                                368,768

Department of Education
------------------------------------------------------------
Office of Bilingual     Bilingual and                211,880
 Education and           immigrant education
 Minority Languages
 Affairs
Office of Educational   Education research,          155,570
 Research and            statistics, and
 Improvement             improvement
Office of Educational   Libraries                    144,058
 Research and
 Improvement
Office of Elementary    Education for the          6,620,859
 and Secondary           disadvantaged
 Education
Office of Elementary    Impact aid                   754,323
 and Secondary
 Education
Office of Elementary    School improvement         1,548,117
 and Secondary           programs
 Education
Office of               Federal family             1,211,805
 Postsecondary           education loan
 Education               liquidating account
Office of               Federal family             2,709,750
 Postsecondary           education loan
 Education               program account
Office of               Higher education             851,261
 Postsecondary
 Education
Office of               Howard University            195,604
 Postsecondary
 Education
Office of               Student financial          7,573,457
 Postsecondary           assistance
 Education
Office of Special       Rehabilitation             2,178,424
 Education and           services and
 Rehabilitative          disability research
 Services
Office of Special       Special education          2,549,121
 Education and
 Rehabilitative
 Services
Office of Vocational    Vocational and adult       1,563,796
 and Adult Education     education
============================================================
Total                                             28,268,025

Department of Energy
------------------------------------------------------------
Energy Programs         Clean coal technology        196,450
Energy Programs         Energy conservation          229,789
Energy Programs         Energy supply,               361,113
                         research and
                         development
                         activities
Energy Programs         General science and          136,915
                         research activities
============================================================
Total                                                924,267

Department of Health and Human Services, except Social
Security
------------------------------------------------------------
Administration for      Children and families      3,434,630
 Children and Families   services programs
Administration for      Community services           440,979
 Children and Families   block grant
Administration for      Family support            15,641,418
 Children and Families   payments to states
Administration for      Interim assistance to        323,572
 Children and Families   states for
                         legalization
Administration for      Low income home energy     1,345,550
 Children and Families   assistance
Administration for      Payments to states for       823,211
 Children and Families   Aid to Families with
                         Dependent Children
                         work programs
Administration for      Payments to states for       890,619
 Children and Families   child care assistance
Administration for      Payments to states for     2,875,782
 Children and Families   foster care and
                         adoption assistance
Administration for      Refugee and entrant          375,420
 Children and Families   assistance
Administration for      Social services block      2,805,197
 Children and Families   grant
Administration on       Aging services               819,930
 Aging                   programs
Centers for Disease     Disease control,             909,543
 Control and             research, and
 Prevention              training
Health Care Financing   Federal hospital             507,738
 Administration          insurance trust fund
Health Care Financing   Grants to states for      77,367,060
 Administration          Medicaid
Health Care Financing   Payments to health        44,226,521
 Administration          care trust funds
Health Resources and    Health resources and       2,352,713
 Services                services
 Administration
Indian Health Services  Indian health services       818,969
Indian Health Services  Indian health                109,234
                         facilities
National Institutes of  National Institutes of     7,676,778
 Health                  Health
Social Security         Supplemental security     24,327,986
 Administration          income program
Substance Abuse and     Substance abuse and        1,876,868
 Mental Health           mental health
 Services                services
 Administration
============================================================
Total                                            189,949,718

Department of Housing and Urban Development
------------------------------------------------------------
Community Planning and  Community development      3,967,148
 Development             grants
Community Planning and  Home investment            1,153,077
 Development             partnerships program
                         (community
                         development)
Community Planning and  Supportive housing           192,260
 Development             program
Housing Programs        Assistance for the         7,566,860
                         renewal of expiring
                         Section 8 subsidy
                         contracts
Housing Programs        Flexible subsidy fund        113,483
Housing Programs        General and special          153,308
                         risk program account
Housing Programs        Homeownership and            143,526
                         opportunity for
                         people everywhere
                         grants
Housing Programs        Housing programs          13,316,014
                         annual contributions
                         for assisted housing
Housing Programs        Other assisted housing       266,226
                         programs (community
                         development)
Public and Indian       Community Partnerships       296,499
 Housing Programs        Against Crime
Public and Indian       Payments for operation     2,532,436
 Housing Programs        of low income housing
                         projects
============================================================
Total                                             29,700,837

Department of Justice
------------------------------------------------------------
Legal Activities        Civil liberties public       499,974
                         education fund
Office of Justice       Crime victims fund           148,839
 Programs
Office of Justice       Justice assistance           607,417
 Programs
============================================================
Total                                              1,256,230

Department of Labor
------------------------------------------------------------
Employment and          Community service            396,060
 Training                employment for older
 Administration          Americans
Employment and          Federal unemployment         177,055
 Training                benefits and
 Administration          allowances
Employment and          Payments to the            7,532,296
 Training                unemployment trust
 Administration          fund
Employment and          State unemployment         3,289,707
 Training                insurance and
 Administration          employment service
                         operations
Employment and          Training and               4,227,692
 Training                employment services
 Administration
Employment and          Unemployment trust         3,615,862
 Training                fund (training and
 Administration          employment)
============================================================
Total                                             19,238,672

Department of State
------------------------------------------------------------
International           Contributions for            460,315
 Organizations and       international
 Conferences             peacekeeping
                         activities
International           Contributions to             909,106
 Organizations and       international
 Conferences             organizations
Other                   Migration and refugee        609,537
                         assistance
============================================================
Total                                              1,978,958

Department of Transportation
------------------------------------------------------------
Federal Aviation        Grants-in-aid for          1,805,102
 Administration          airports (airport and
                         airway trust fund)
Federal Highway         Federal-aid highways      16,743,927
 Administration
Federal Highway         Miscellaneous                240,981
 Administration          appropriations
Federal Highway         Miscellaneous highway        127,161
 Administration          trust funds
Federal Railroad        Grants to National           465,000
 Administration          Railroad Passenger
                         Corporation
Federal Railroad        Mandatory passenger          146,000
 Administration          rail service payments
Federal Railroad        Northeast corridor           203,307
 Administration          improvement program
Federal Transit         Discretionary grants       1,833,747
 Administration          (trust fund)
Federal Transit         Formula grants             1,855,784
 Administration
Federal Transit         Washington metro             171,079
 Administration
National Highway        Highway traffic safety       135,607
 Traffic Safety          grants
 Administration
============================================================
Total                                             23,727,695

Department of Veterans Affairs
------------------------------------------------------------
Construction            Grants for                   109,013
                         construction of state
                         extended care
                         facilities
Veterans Benefits       Guaranty and indemnity       861,244
 Administration          program account
Veterans Benefits       Loan guaranty program        119,456
 Administration          account
Veterans Benefits       Readjustment benefits      1,114,997
 Administration
Veterans Benefits       Servicemen's group           444,929
 Administration          life insurance fund
Veterans Health         Medical care                 128,840
 Administration
============================================================
Total                                              2,778,479

Department of the Interior
------------------------------------------------------------
Bureau of Indian        Operation of Indian          300,879
 Affairs                 programs
                         (conservation and
                         land management)
Bureau of Land          Payments in lieu of          103,523
 Management              taxes
Minerals Management     Mineral leasing and          462,531
 Service                 associated payments
Office of Surface       Abandoned mine               204,931
 Mining Reclamation      reclamation fund
 and Enforcement         (conservation and
                         land management)
Territorial and         Compact of free              180,096
 International Affairs   association
United States Fish and  Miscellaneous                163,557
 Wildlife Service        permanent
                         appropriations
United States Fish and  Sport fish restoration       225,212
 Wildlife Service
============================================================
Total                                              1,640,729

Department of the Treasury
------------------------------------------------------------
Bureau of Alcohol,      Internal revenue             197,472
 Tobacco and Firearms    collections for
                         Puerto Rico
Financial Management    Payment to the             2,328,306
 Service                 Resolution Funding
                         Corporation
United States Customs   Miscellaneous                100,016
 Service                 permanent
                         appropriations
============================================================
Total                                              2,625,794

Environmental Protection Agency
------------------------------------------------------------
Environmental           Abatement, control,          688,792
 Protection Agency       and compliance
Environmental           Hazardous substance          264,400
 Protection Agency       superfund
Environmental           Research and                 132,644
 Protection Agency       development
Environmental           Water infrastructure       2,567,157
 Protection Agency       financing
============================================================
Total                                              3,652,993

Funds Appropriated to the President
------------------------------------------------------------
Agency for              Functional development     1,194,024
 International           assistance program
 Development
Agency for              Sub-Saharan Africa           732,217
 International           development
 Development             assistance
International           Assistance for the new       188,620
 Peacekeeping,           independent states of
 Regional Security,      the former Soviet
 and Democracy           Union
 Programs
International           Assistance to Central        174,986
 Peacekeeping,           and Eastern Europe
 Regional Security,
 and Democracy
 Programs
Multilateral            International                320,000
 Assistance              organizations and
                         programs
Regional Peace,         Economic support fund      2,824,923
 Security, and Defense
 Cooperation
Regional Peace,         Foreign military           3,246,345
 Security, and Defense   financing grants
 Cooperation
Regional Peace,         Regional peace and           136,746
 Security, and Defense   security program
 Cooperation             account
============================================================
Total                                              8,817,861

National Aeronautics and Space Administration
------------------------------------------------------------
National Aeronautics    Research and                 137,198
 and Space               development (space
 Administration          flight, research, and
                         supporting
                         activities)

Other Independent Agencies
------------------------------------------------------------
Appalachian Regional    Appalachian regional         180,869
 Commission              development programs
Board for               Grants and expenses          218,125
 International
 Broadcasting
Commission on National  Salaries and expenses        152,027
 and Community Service
Corporation for         Domestic volunteer           133,086
 National and            service programs,
 Community Service       operating expenses
Corporation for Public  Public broadcasting          318,636
 Broadcasting            fund
District of Columbia    Federal payment to the       698,000
                         District of Columbia
Export-Import Bank of   Export Import Bank           635,649
 the United States       loans program account
Federal Emergency       Disaster relief            2,045,450
 Management Agency
Federal Emergency       Emergency food and           128,992
 Management Agency       shelter program
Federal Emergency       Emergency management         177,583
 Management Agency       planning and
                         assistance (Defense-
                         related activities)
Legal Services          Payment to the Legal         357,900
 Corporation             Services Corporation
National Endowment for  National endowment for       147,624
 the Arts                the arts: grants and
                         administration
National Endowment for  National endowment for       159,840
 the Humanities          the humanities:
                         grants and
                         administration
National Science        Education and human          491,712
 Foundation              resources
National Science        Research and related       1,933,281
 Foundation              activities (Defense-
                         related activities)
Postal Service          Payment to the Postal        150,947
                         Service fund
Railroad Retirement     Federal windfall             289,155
 Board                   subsidy
Tennessee Valley        Tennessee Valley             236,987
 Authority               Authority fund
                         (energy supply)
United States           Educational and              274,329
 Information Agency      cultural exchange
                         programs
============================================================
Total                                              8,730,192

Small Business Administration
------------------------------------------------------------
Small Business          Business loan program        369,965
 Administration          account
Small Business          Disaster loan program        291,941
 Administration          account
Small Business          Salaries and expenses        133,784
 Administration
============================================================
Total                                                795,690
============================================================
Subtotal: Obligations                            376,753,237
 listed in table
 III.10
============================================================
Total fiscal year 1993                          $381,427,705
 obligations, object
 class 41, all
 accounts
Percent of total                                        98.8
 fiscal year 1993
 object class 41
 obligations
------------------------------------------------------------
Source:  OMB MAX budget system



                         Table III.11
           
            Object Class 42: Insurance Claims and
                         Indemnities

                    (Dollars in thousands)

Bureau/Agency/Fund      Account title            Obligations
----------------------  ----------------------  ------------
Department of Agriculture
------------------------------------------------------------
Farm Service Agency     Federal Crop Insurance    $1,051,529
                         Corporation fund

Department of Defense--Civil
------------------------------------------------------------
Military Retirement     Military retirement       25,858,996
                         fund

Department of Defense--Military
------------------------------------------------------------
Operation and           Operation and                179,907
 Maintenance             maintenance, Air
                         Force

Department of Education
------------------------------------------------------------
Office of               Federal family             2,868,989
 Postsecondary           education loan
 Education               liquidating account

Department of Health and Human Services, Social Security
------------------------------------------------------------
Social Security         Federal disability        33,999,793
                         insurance trust fund
Social Security         Federal old-age and      265,898,207
                         survivors insurance
                         trust fund
============================================================
Total                                            299,898,000

Department of Health and Human Services, except Social
Security
------------------------------------------------------------
Health Care Financing   Federal hospital          87,459,071
 Administration          insurance trust fund
Health Care Financing   Federal supplementary     47,985,920
 Administration          medical insurance
                         trust fund
Health Care Financing   Payments to health           377,116
 Administration          care trust funds
Health Resources and    Vaccine injury               110,443
 Services                compensation
 Administration
Social Security         Payments to Social         6,228,082
 Administration          Security trust funds
Social Security         Special benefits for         799,333
 Administration          disabled coal miners
============================================================
Total                                            142,959,965

Department of Labor
------------------------------------------------------------
Employment Standards    Black lung disability        555,132
 Administration          trust fund
Employment Standards    Special benefits           1,826,128
 Administration
Employment Standards    Special workers'             111,464
 Administration          compensation expenses
Employment and          Unemployment trust        35,980,241
 Training                fund (training and
 Administration          employment)
Pension Benefit         Pension Benefit              696,049
 Guaranty Corporation    Guaranty Corporation
                         fund
============================================================
Total                                             39,169,014

Department of State
------------------------------------------------------------
Administration of       Foreign Service              396,673
 Foreign Affairs         retirement and
                         disability fund
Administration of       Payment to the Foreign       273,382
 Foreign Affairs         Service retirement
                         and disability fund
============================================================
Total                                                670,055

Department of Veterans Affairs
------------------------------------------------------------
Veterans Benefits       Compensation              13,486,612
 Administration
Veterans Benefits       National Service Life        855,445
 Administration          Insurance fund
Veterans Benefits       Pensions                   3,476,871
 Administration
============================================================
Total                                             17,818,928

Department of the Treasury
------------------------------------------------------------
Financial Management    Claims, judgments, and       493,819
 Service                 relief acts

Office of Personnel Management
------------------------------------------------------------
Office of Personnel     Civil service             34,665,455
 Management              retirement and
                         disability fund

Other Independent Agencies
------------------------------------------------------------
Federal Emergency       National flood               984,575
 Management Agency       insurance fund
Railroad Retirement     Federal payments to        2,998,067
 Board                   the railroad
                         retirement accounts
Railroad Retirement     Rail Industry Pension      2,794,754
 Board                   Fund
Railroad Retirement     Railroad Social            4,530,136
 Board                   Security equivalent
                         benefit account
United Mine Workers of  United Mine Workers of       155,372
 America Benefit Funds   America combined
                         benefit fund
============================================================
Total                                             11,462,904
============================================================
Subtotal: Obligations                            577,097,561
 listed in table
 III.11
============================================================
Total fiscal year 1993                          $578,278,629
 obligations, object
 class 42, all
 accounts
Percent of fiscal year                                  99.8
 1993 object class 42
 obligations
------------------------------------------------------------



                         Table III.12
           
           Object Class 43: Interest and Dividends

                    (Dollars in thousands)

Bureau/Agency/Fund      Account title            Obligations
----------------------  ----------------------  ------------
Department of Agriculture
------------------------------------------------------------
Farm Service Agency     Agricultural credit       $1,739,882
                         insurance fund
                         liquidating account
Farm Service Agency     Commodity Credit             243,523
                         Corporation fund
Rural Housing and       Rural housing              3,202,142
 Community Development   insurance fund
 Service                 liquidating account
Rural Utilities         Rural development            674,022
 Service                 insurance fund
                         liquidating account
Rural Utilities         Rural electrification      2,524,994
 Service                 and telephone
                         revolving fund
                         liquidating account
============================================================
Total                                              8,384,563

Department of Energy
------------------------------------------------------------
Power Marketing         Bonneville Power             113,900
 Administration          Administration fund

Department of Housing and Urban Development
------------------------------------------------------------
Housing Programs        Housing for the              727,998
                         elderly or
                         handicapped fund
                         liquidating account

Department of Labor
------------------------------------------------------------
Employment Standards    Black lung disability        366,616
 Administration          trust fund

Department of Veterans Affairs
------------------------------------------------------------
Veterans Benefits       National service life        751,570
 Administration          insurance fund
Veterans Benefits       Veterans special life        111,658
 Administration          insurance fund
============================================================
Total                                                863,228

Department of the Treasury
------------------------------------------------------------
Federal Financing Bank  Federal Financing Bank    12,745,611
Financial Management    Net interest paid to         513,536
 Service                 loan guarantee
                         financing accounts
Interest on the Public  Other interest on the    292,502,219
 Debt                    public debt
Internal Revenue        Refunding internal         2,127,457
 Service                 revenue collections,
                         interest
============================================================
Total                                            307,888,823

General Services Administration
------------------------------------------------------------
Real Property           Federal buildings fund       111,815
 Activities

Other Independent Agencies
------------------------------------------------------------
Export-Import Bank of   Export-Import Bank of        719,542
 the United States       the United States
                         liquidating account
Farm Credit System      Financial Assistance         116,570
 Financial Assistance    Corporation
 Corporation             assistance fund,
                         liquidating account
Farm Credit System      Financial Assistance         127,008
 Financial Assistance    Corporation trust
 Corporation             fund
Postal Service          Postal Service fund        3,545,628
Tennessee Valley        Tennessee Valley           1,786,190
 Authority               Authority fund
                         (energy supply)
============================================================
Total                                              6,294,938
============================================================
Subtotal: Obligations                            324,751,881
 listed in table
 III.12
============================================================
Total fiscal year 1993                          $325,251,705
 obligations, object
 class 43, all
 accounts
Percent of total                                        99.8
 fiscal year 1993
 object class 43
 obligations
------------------------------------------------------------
Source:  OMB MAX budget system



                         Table III.13
           
                   Object Class 44: Refunds

                    (Dollars in thousands)

Bureau/Agency/Fund      Account title            Obligations
----------------------  ----------------------  ------------
Department of the Interior
------------------------------------------------------------
Bureau of Indian        Miscellaneous trust         $230,553
 Affairs                 funds (area and
                         regional development)

Department of the Treasury
------------------------------------------------------------
Internal Revenue        Health insurance             649,820
 Service                 supplement to earned
                         income credit
Internal Revenue        Payment where earned       8,780,787
 Service                 income credit exceeds
                         liability for tax
============================================================
Total                                              9,430,607

Office of Personnel Management
------------------------------------------------------------
Office of Personnel     Civil Service                341,625
 Management              retirement and
                         disability fund

Other Independent Agencies
------------------------------------------------------------
Bank Insurance          Bank Insurance Fund         -555,323
============================================================
Subtotal: Obligations                              9,447,462
 listed in table
 III.13
============================================================
Total fiscal year 1993                            $9,483,556
 obligations, object
 class 44, all
 accounts
Percent of total                                        99.6
 fiscal year 1993
 object class 44
 obligations
------------------------------------------------------------
Source:  OMB MAX budget system



                         Table III.14
           
                Object Class 92: Undistributed
                         Obligations

                    (Dollars in thousands)

Bureau/Agency/Fund      Account title            Obligations
----------------------  ----------------------  ------------
Department of Health and Human Services, except Social
Security
------------------------------------------------------------
Health Care Financing   Federal hospital            $721,428
 Administration          insurance trust fund
Health Care Financing   Federal supplementary      1,417,532
 Administration          medical insurance
                         trust fund
Health Care Financing   Payments to health           117,862
 Administration          care trust funds
Social Security         Supplemental security      1,585,597
 Administration          income program
============================================================
Total                                              3,842,419

Department of Health and Human Services, Social Security
------------------------------------------------------------
Social Security         Federal disability           121,113
                         insurance trust fund
Social Security         Federal old-age and        3,635,253
                         survivors insurance
                         trust fund
============================================================
Total                                              3,756,366

Department of Labor
------------------------------------------------------------
Employment and          Advances to the            4,994,116
 Training                unemployment trust
 Administration          fund and other funds

Department of the Treasury
------------------------------------------------------------
Departmental Offices    Exchange stabilization       575,204
                         fund

Department of Transportation
------------------------------------------------------------
Federal Aviation        Trust fund share of        2,279,313
 Administration          FAA operations

Other Independent Agencies
------------------------------------------------------------
Bank Insurance          Bank Insurance Fund        6,837,622
FSLIC Resolution        FSLIC Resolution Fund      3,474,579
Railroad Retirement     Railroad Social            3,165,264
 Board                   Security equivalent
                         benefit account
Resolution Trust        Resolution Trust          10,911,509
 Corporation             Corporation revolving
                         fund
============================================================
Total                                             24,388,974

Small Business Administration
------------------------------------------------------------
Small Business          Salaries and expenses        109,733
 Administration
============================================================
Subtotal: Obligations                             39,946,125
 listed in table
 III.14
============================================================
Total fiscal year 1993                           $40,082,568
 obligations, object
 class 92, all
 accounts
Percent of total                                        99.7
 fiscal year 1993
 object class 92
 obligations
------------------------------------------------------------



                         Table III.15
           
           Object Class 93: Limitation on Expenses

                    (Dollars in thousands)

Bureau/Account/Fund     Account title            Obligations
----------------------  ----------------------  ------------
Department of Health and Human Services, except Social
Security
------------------------------------------------------------
Health Care Financing   Federal hospital            $387,461
 Administration          insurance trust fund
Health Care Financing   Federal supplementary        295,525
 Administration          medical insurance
                         trust fund
============================================================
Total                                                682,986

Department of Health and Human Services, Social Security
------------------------------------------------------------
Social Security         Federal disability       (4,008,783)
                         insurance trust fund
Social Security         Federal old-age and        3,317,790
                         survivors insurance
                         trust fund
============================================================
Total                                              (690,993)
============================================================
Subtotal: Obligations                                (8,007)
 listed in table
 III.15
============================================================
Total fiscal year 1993                              ($8,007)
 obligations, object
 class 93, all
 accounts
Percent of total                                         100
 fiscal year 1993
 object class 93
 obligations
------------------------------------------------------------
Source:  OMB MAX budget system


COMPARISON OF 1993 EFFORTS TO USE
OBJECT CLASS DATA AS A BASE FOR
REDUCING ADMINISTRATIVE COSTS
========================================================== Appendix IV

Three separate approaches to reduce federal overhead or
administrative costs--each using object class data as the means to
define a base for the proposed reductions--were suggested during
1993.  Table IV.1 displays the object classes used by

  the administration's Executive Order 12837, issued February 10,
     1993;

  S.  1004, introduced May 20, 1993, by Senator Hank Brown; and

  S.  1524, introduced October 7, 1993, by Senator Kay Hutchison.  A
     companion bill to S.  1524, H.R.  3250, was also introduced in
     the House by Representative Lamar Smith on October 7, 1993. 



                                    Table IV.1
                     
                         Comparison of Object Class-based
                        Proposals to Reduce Administrative
                                     Expenses

Object class    E.O.12837             S. 1004               S. 1524
--------------  --------------------  --------------------  --------------------
Travel and      X                     X                     X
transportation
of persons

Transportation  X                     X                     X
of things

Rent,           X (see exclusion)     X                     X (see exclusion)
communications
, and
utilities

Printing and    X                     X                     X
reproduction

Consulting and  X                     X                     X (see exclusion)
other services

Supplies and    X                     X                     X
materials

Equipment                             X (see exclusion)

Land and                              X
structures

Investments                           X (see exclusion)
and loans

Exclusions      --Legislative and     --Legislative         --Legislative and
                judicial branch       branch, Department    judicial branch and
                obligations;          of Defense and U.S.   Department of
                --rent paid to the    Postal Service        Defense
                General Services      obligations and       obligations;
                Administration;       --obligations for     --rent paid to the
                --reimbursements      foreign assistance    General Services
                received from         involving equipment,  Administration;
                another federal       investments, and      --obligations for
                agency;               loans.                government-owned,
                --revolving fund                            contractor-operated
                activities; and                             corporations and for
                --"program-related"                         research and
                obligations.                                development
                                                            activities; and
                                                            --reimbursements
                                                            paid to another
                                                            federal agency.
--------------------------------------------------------------------------------
Figure IV.1 reconstructs a trendline for each of the proposals, in
billions of real 1993 dollars, using the definitions from table IV.1. 
Differences in application of the proposals throughout the federal
government, in the specific object classes targeted, and in the
specific types of obligations excluded had a profound effect on the
calculated base for each proposal.  Figure IV.1 displays the effect
of these definitions for each proposal, with the following
exceptions: 

  Obligations for rent paid to General Services Administration could
     be identified, but only beginning in 1976.  Thus, for
     comparison, the starting fiscal year for figure IV.1 is 1976. 

  Reimbursements, whether received from (E.O.  12837) or paid to
     (S.  1524) federal agencies, could not be excluded prior to
     1980.  Even after 1980, there is no way to determine if such
     reimbursements are being reliably recorded by agencies.  Also,
     certain object class 25 obligations for government-owned,
     contractor-operated corporations and for research and
     development contracts were not separately recorded prior to
     1993.  For each of these cases, no exclusions were made in
     determining the trends displayed in figure IV.1. 

  "Program-related" obligations for E.O.  12837 were not excluded. 
     These obligations were determined by OMB budget analysts without
     formal definition or guidance, and there is no valid method to
     replicate this judgment over the trend period.  For a discussion
     of the significant effect of this exclusion on the
     administration's policy, see Budget Issues:  Assessing Executive
     Order 12837 on Reducing Administrative Expenses (GAO/AIMD-94-15,
     November 17, 1993). 

  Obligations for "foreign assistance," as required by S.  1004,
     could not be identified and, therefore, were not excluded. 

   Figure IV.1:  A Comparison of
   the Calculated Base for Three
   Proposals to Reduce Federal
   Administrative Expenses

   (See figure in printed
   edition.)

As indicated in figure IV.1, although the bases for the separate
proposals were quite different, each tended to move in the same
direction over the trend period, generally showing little, if any,
real growth.  This result is not unexpected in that each proposal
dealt with object classes which have represented, as discussed in
appendix II, a declining share of total federal obligations. 
Overall, subject to the constraints in reconstructing each proposal's
base, the average annual growth rates for the subset of obligations
targeted by each proposal were 1.20 percent for E.O.  12837, -0.16
percent for S.  1004, and 1.39 percent for S.  1524.  For comparison,
during the period 1976 through 1993, the U.S.  gross domestic product
increased by 2.56 percent. 


MAJOR CONTRIBUTORS TO THIS REPORT
=========================================================== Appendix V

ACCOUNTING AND INFORMATION
MANAGEMENT DIVISION, WASHINGTON,
D.C. 

Michael J.  Curro, Assistant Director
John W.  Mingus, Evaluator
