Chapter 1 : Monthly statement of receipts and expenditures of the United States government Book/Printed Material An account of the receipts and expenditures of the United States for the year President of the U. States / Repts. & expends U.S. for Enlarge View images in sequence. Discretionary spending requires an annual appropriation bill, which is a piece of legislation. Discretionary spending is typically set by the House and Senate Appropriations Committees and their various subcommittees. Since the spending is typically for a fixed period usually a year, it is said to be under the discretion of the Congress. Some appropriations last for more than one year see Appropriation bill for details. In particular, multi-year appropriations are often used for housing programs and military procurement programs. Direct spending, also known as mandatory spending, refers to spending enacted by law, but not dependent on an annual or periodic appropriation bill. Most mandatory spending consists of entitlement programs such as Social Security benefits, Medicare, and Medicaid. These programs are called "entitlements" because individuals satisfying given eligibility requirements set by past legislation are entitled to Federal government benefits or services. Many other expenses, such as salaries of Federal judges, are mandatory, but account for a relatively small share of federal spending. The Congressional Budget Office CBO reports the costs of mandatory spending programs in a variety of annual and special topic publications. Certain entitlement programs, because the language authorizing them are included in appropriation bills, are termed "appropriated entitlements. The share of Federal spending for mandatory programs has been increasing as the U. Medicare, Medicaid, and Social Security grew from 4. CBO has indicated healthcare spending per beneficiary is the primary long-term fiscal challenge. Social Security and Medicare expenditures are funded by permanent appropriations and so are considered mandatory spending according to the Budget Enforcement Act BEA. Social Security and Medicare are sometimes called "entitlements," because people meeting relevant eligibility requirements are legally entitled to benefits, although most pay taxes into these programs throughout their working lives. Some programs, such as Food Stamps, are appropriated entitlements. Some mandatory spending, such as Congressional salaries, is not part of any entitlement program. Funds to make federal interest payments have been automatically appropriated since Major categories of FY mandatory spending included: According to the conservative Heritage Foundation, spending on Social Security, Medicare, and Medicaid will rise from 8. Census Bureau, in The number of workers continues declining relative to those receiving benefits. For example, the number of workers per retiree was 5. The unfavorable combination of demographics and per-capita rate increases is expected to drive both Social Security and Medicare into large deficits during the 21st century. Multiple government sources have argued these programs are fiscally unsustainable as presently structured due to the extent of future borrowing and related interest required to fund them; here is a summary from the Social Security and Medicare Trustees: The financial condition of the Social Security and Medicare programs remains challenging. Projected long run program costs are not sustainable under current program parameters. The deficits will be made up by redeeming trust fund assets until reserves are exhausted in, at which point tax income would be sufficient to pay about three fourths of scheduled benefits through The difference will be made up by redeeming trust fund assets. Growing annual deficits are projected to exhaust HI reserves in, after which the percentage of scheduled benefits payable from tax income would decline from 81 percent in to about 50 percent in and 30 percent in In addition, the Medicare Supplementary Medical Insurance SMI Trust Fund that pays for physician services and the prescription drug benefit will continue to require general revenue financing and charges on beneficiaries that grow substantially faster than the economy and beneficiary incomes over time. The trust funds contain non-marketable treasury securities that the government is legally obligated to pay. In the absence of a balanced budget, the government will be required to convert these non-marketable securities to marketable securities by borrowing in the future, as trust fund claims are redeemed. Medicare was established in and expanded thereafter. In, the program covered an estimated 45 million persons 38 million aged and 7 million disabled. It Page 1
consists of four distinct parts which are funded differently: Part A Hospital Insurance, or HI covers inpatient hospital services, skilled nursing care, and home health and hospice care. The HI trust fund is mainly funded by a dedicated payroll tax of 2. Part B Supplementary Medical Insurance, or SMI covers physician services, outpatient services, and home health and preventive services. Individuals choosing to enroll in Part C must also enroll in Part B. Part D covers prescription drug benefits. The number of persons enrolled in Medicare is expected to increase from 47 million in to 80 million by The CBO has indicated that: The bulk of that projected increase in health care spending reflects higher costs per beneficiary rather than an increase in the number of beneficiaries associated with an aging population. Our businesses will not be able to compete; our families will not be able to save or spend; our budgets will remain unsustainable unless we get health care costs under control. In other words, this amount would have to be set aside today such that the principal and interest would cover the shortfall over the next 75 years. CBO estimates that policy changes with a 0. Abbreviations are explained in the chart page. CBO Report â July It is primarily funded through a dedicated payroll tax. An estimated million people paid into the program and 53 million received benefits, roughly 2. An estimated million people paid into the program and 51 million received benefits, roughly 3. A few key points to understand under current law, if no reforms are implemented: Social Security is funded by a dedicated payroll tax of This means that Social Security will be paid at least to the extent of payroll tax collections. Claims that the program is "bankrupt" or "going bankrupt" can be evaluated in this context. This surplus amount is commonly referred to as the " Social Security Trust Fund. As sources of funds other than the dedicated payroll taxes are diverted to the program, the Trust Fund balance is reduced. Social Security then becomes a true "pay as you go" program, without Trust Fund amounts to cover shortfalls. This is a funding challenge for the government overall, not just Social Security. The number of program recipients is expected to increase from 44 million in to 73 million in This annual surplus is credited to Social Security trust funds that hold special non-marketable Treasury securities. The Social Security surplus reduces the amount of U. Treasury borrowing from the public, as the surplus funds may be used for other government purposes. At that point, payments will exceed payroll tax revenues, resulting in the gradual reduction of the trust funds balance as the securities are redeemed against other types of government revenues. By, according to some estimates, the trust funds will be exhausted. The estimated annual shortfall averages 1. Over an infinite time horizon, these shortfalls average 3. This is slightly different from the 0. For example, CBO estimates that raising the payroll tax by two percentage points from The various impacts are summarized in the CBO chart at right. Raising the early retirement age from 62 to 64 has little impact, as those who wait longer to begin receiving benefits get a higher amount. Page 2
Chapter 2 : Receipts and expenditure Add tags for "An account of the receipts and expenditures of the United States for the year ". Be the first. Accounts, ; and U. This series contains on all of the categories listed above. Abstracts of Continental Certificates provides a listing of loan certificates issued by Pennsylvania for a loan to the United States, the amount of the certificates, interest earned, and the serial number of each certificate. A list of warrants, redeemable and expected, is also included. In the Assumed Debt records, there are loan certificates and corresponding stub booklets. Information on the certificates includes the value of the certificate, the owner and the date of purchase, and the cancellation seal. A ledger is also included which provides a listing of the certificates in rising numerical order, the amount of each certificate, the date on which interest would commence, and the rate of depreciation. Certificates for Horses and Provisions, Information about horses and provisions certificates include a book containing lists of certificates for horses and provisions granted to various men. Data in each entry includes the name of the issuer, the name of the grantee, the date of issue, and the county of residence. There is also an account of when the certificates were redeemed for reimbursement by the state, how much was paid and to whom. The corresponding certificates this information can also be found and are filed according to county. Day Books, - Arranged chronologically by date of transaction, these books are a bi-monthly record of accounts kept on a daily basis for the purpose of auditing, liquidating and adjusting Commonwealth accounts. Types of accounts include salaries, expenses, taxes, revenue and transactions of government officials. Entries give a description of each transaction, followed by the amount involved. General Accounts,, n. The General Accounts section of this series includes such information as lists of goods seized by the British, their estimated value, and who filed the claim; various accounts of state officials and military officers. Other important accounts are: Other information contained in this section of the series includes vouchers and receipts for purchase of arms, provisions, food, and supplies for the state militia; and documents relating to the forfeiture and escheat of estates. Accounts, - In the records relating to the United States Account, information includes vouchers, receipts, and account books involving the militia during the Revolution and the Whiskey Rebellion and the money owed to Pennsylvania or individual commanders for service to the United States. Records in these volumes vary greatly and information can include detailed accounts of expenditures giving names of laborers and merchants, receipts for goods purchased for military units, and day books. The numbered certificates will match with the United States Account Ledgers. United States Account Ledgers include much of the same information in the United States Account, and is arranged in ascending order according to account number. This information might include names and ranks of officers paid, reasons for payment; names and wages of laborers paid and where the work was performed; names and titles of various county officials and the reason for payments; and reimbursement to men for goods and possessions lost in the Western Expedition. Page 3
Chapter 3 : Gov't Receipts, Expenditures & Investment FRED St. Louis Fed An account of the receipts and expenditures of the United States, for the year Stated in pursuance of the standing order of the House of Representatives of the United States, passed on the thirtieth day of December, one thousand, seven hundred and ninety-one. Overview[ edit ] CBO: Federal spending and revenue components for fiscal year Major expenditure categories are healthcare, Social Security, and defense; income and payroll taxes are the primary revenue sources. Since, the U. Deficits as a share of GDP are expected to rise as spending for Social Security, Medicare, and interest on the federal debt rise faster than revenue. CBO current law baseline as of April, showing forecast of deficit and debt by year. The fiscal year refers to the year in which it ends. However, Congress is the body required by law to pass appropriations annually and to submit funding bills passed by both houses to the President for signature. Congressional decisions are governed by rules and legislation regarding the federal budget process. Budget committees set spending limits for the House and Senate committees and for Appropriations subcommittees, which then approve individual appropriations bills to allocate funding to various federal programs. After Congress approves an appropriations bill, it is then sent to the President, who may either sign it into law or veto it. A vetoed bill is sent back to Congress, which can pass it into law with a two-thirds majority in each legislative chamber. Congress may also combine all or some appropriations bills into one omnibus reconciliation bill. In addition, the president may request and the Congress may pass supplemental appropriations bills or emergency supplemental appropriations bills. Several government agencies provide budget data and analysis. These agencies have reported that the federal government is facing many important long-run financing challenges, primarily driven by an aging population, rising interest payments, and spending for healthcare programs like Medicare and Medicaid. Other revenue types included excise, estate and gift taxes. FY revenues were Tax revenues averaged approximately The budget deficit was 3. Constitution Article I, section 9, clause 7 states that "No money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of Receipts and Expenditures of all public Money shall be published from time to time. Current law 31 U. Typically, presidents submit budgets on the first Monday in February. The federal budget is calculated largely on a cash basis. That is, revenues and outlays are recognized when transactions are made. Therefore, the full long-term costs of programs such as Medicare, Social Security, and the federal portion of Medicaid are not reflected in the federal budget. By contrast, many businesses and some other national governments have adopted forms of accrual accounting, which recognizes obligations and revenues when they are incurred. The costs of some federal credit and loan programs, according to provisions of the Federal Credit Reform Act of, are calculated on a net present value basis. Typically, separate Congressional committees have jurisdiction over authorization and appropriations. The House and Senate Appropriations Committees currently have 12 subcommittees, which are responsible for drafting the 12 regular appropriations bills that determine amounts of discretionary spending for various federal programs. Appropriations bills must pass both the House and Senate and then be signed by the president in order to give federal agencies the legal budget authority to spend. Congress may also pass "special" or "emergency" appropriations. Spending that is deemed an "emergency" is exempt from certain Congressional budget enforcement rules. Funds for disaster relief have sometimes come from supplemental appropriations, such as after Hurricane Katrina. In other cases, funds included in emergency supplemental appropriations bills support activities not obviously related to actual emergencies, such as parts of the Census of Population and Housing. Special appropriations have been used to fund most of the costs of war and occupation in Iraq and Afghanistan so far. Budget authority versus outlays[ edit ] The amount of budget authority and outlays for a fiscal year usually differ because the government can incur obligations for future years. This means that budget authority from a previous fiscal year can, in many cases, be used for expenditure of funds in future fiscal years; for example, a multi-year contract. Budget Page 4
authority is the legal authority provided by federal law to enter into financial obligations that will result in immediate or future outlays involving federal government funds. Outlays refer to the issuance of checks, disbursement of cash or electronic transfer of funds made to liquidate a federal obligation and is usually synonymous with "expenditure" or "spending". The term "appropriations" refers to budget authority to incur obligations and to make payments from the Treasury for specified purposes. Some military and some housing programs have multi-year appropriations, in which their budget authority is specified for several coming fiscal years. In the congressional budgeting process, an "authorization" technically the " authorization act " provides the legal authority for the executive branch to act, establishes an account which can receive money to implement the action, and sets a limit on how much money may be expended. However, this account remains empty until Congress approves an "appropriation", which requires the U. Treasury to provide funds up to the limit provided for in the authorization. Congress is not required to appropriate as much money as is authorized. Known as " authorization bills ", such legislation usually provides for a multi-year authorization and appropriation. Authorization bills are particularly useful when funding entitlement programs benefits which federal law says an individual has a right to, regardless if any money is appropriated, where estimating the amount of funds to be spent is difficult. Authorization bills are also useful when giving a federal agency the right to borrow money, sign contracts, or provide loan guarantees. In, two-thirds of all federal spending came through authorization bills. A "backdoor appropriation" occurs when authorizing legislation requires an agency to spend a specific amount of money on a specific project within a specific period of time. Because the agency would be violating the law if it did not do so, it is required to spend the moneyâ even if no appropriation has been made. Backdoor appropriations are particularly vexsome because removing the appropriation requires amending federal law, which is often politically impossible to do within a short period of time. Backdoor authorizations and appropriations are sources of significant friction in Congress. Authorization and appropriations committees jealously guard their legislative rights, and the congressional budgeting process can break down when committees overstep their boundaries and are retaliated against. Government, usually in the December following the close of the federal fiscal year, which occurs September The Treasury Department also produces a Combined Statement of Receipts, Outlays, and Balances each December for the preceding fiscal year, which provides detailed data on federal financial activities. This document is composed of 17 sections, each of which has one or more tables. Each section covers a common theme. Section 1, for example, provides an overview of the budget and off-budget totals; Section 2 provides tables on receipts by source; and Section 3 shows outlays by function. When a section contains several tables, the general rule is to start with tables showing the broadest overview data and then work down to more detailed tables. The purpose of these tables is to present a broad range of historical budgetary data in one convenient reference source and to provide relevant comparisons likely to be most useful. The most common comparisons are in terms of proportions e. The Outlook included projections for debt through and beyond. CBO outlined several scenarios that result in a range of outcomes. The "Extended Baseline" scenario and "Extended Alternative Fiscal" scenario both result in a much higher level of debt relative to the size of the economy GDP as the country ages and healthcare costs rise faster than the rate of economic growth. CBO also identified scenarios involving significant austerity measures, which maintain or reduce the debt relative to GDP over time. Over the to period, federal spending averaged Payroll taxes, paid by all wage earners, have increased as a share of total federal tax revenues, while corporate taxes have fallen. Income taxes have moved in a range, with Presidents Reagan and G. Bush lowering income tax rates, and Clinton and Obama raising them for the top incomes. Recessions typically reduce government tax collections as economic activity slows. The top marginal tax rate has declined considerably since The Bush tax cuts of and, extended by President Obama in, lowered the top rate from For the Social Security portion, employers and employees each pay 6. It is a flat tax up to the cap, but regressive overall as it is not applied to higher incomes. The Medicare portion is also paid by employer and employee each at 1. Starting in, an additional 0. Like conventional spending, they contribute to the federal budget deficit. They also influence choices about working, saving, and investing, and Page 5
affect the distribution of income. Since eliminating a tax expenditure changes economic behavior, the amount of additional revenue that would be generated is somewhat less than the estimated size of the tax expenditure. Major expenditure categories[ edit ] CBO projections of U. Over time, there will be fewer workers per retiree. CBO forecast of Social Security tax revenues and outlays from FY Estimated Federal Spending per Budget Interest to GDP, a measure of debt burden, was very low in but is projected to rise with both interest rates and debt levels over the period. Major categories of FY spending included: Around two thirds of federal spending is for "mandatory" programs. CBO projects that mandatory program spending and interest costs will rise relative to GDP over the â period, while defense and other discretionary spending will decline relative to GDP. Some programs, such as Food Stamps, are appropriated entitlements. Some mandatory spending, such as Congressional salaries, is not part of any entitlement program. Mandatory spending accounted for In, these were This is due in part to demographic trends, as the number of workers continues declining relative to those receiving benefits. For example, the number of workers per retiree was 5. This unfavorable combination of demographics and per-capita rate increases is expected to drive both Social Security and Medicare into large deficits during the 21st century. Unless these long-term fiscal imbalances are addressed by reforms to these programs, raising taxes or drastic cuts in discretionary programs, the federal government will at some point be unable to pay its obligations without significant risk to the value of the dollar inflation. It consists of four distinct parts which are funded differently: Hospital Insurance, mainly funded by a dedicated payroll tax of 2. The number of persons enrolled in Medicare is expected to increase from 47 million in to 80 million by Chapter 4 : An account of the receipts and expenditures of the United States for the year PICRYL Account of the Receipts and Expenditures of the United States, Chapter 5 : Expenditures in the United States federal budget - Wikipedia Title An account of the receipts and expenditures of the United States for the year Other Title President of the U. States. Chapter 6 : Government total expenditures FRED St. Louis Fed Beginning date Title Variation Receipts and expenditures of the United States Frequency Annual Vol/date range Note Vol. for "Commencing with the establishment () of the Treasury Department". Chapter 7 : Act of Congress Establishing the Treasury Department Letter From the Secretary of the Treasury Accompanying a Report and Estimates of Appropriations for the Service of the Year [microform]: Also, an Account of Receipts and Expenditures From October 1,, to September 30, And a Statement of Balances of Appropriations Unexpended on 30th September Chapter 8 : United States federal budget - Wikipedia a regular Statement and Account of Receipts and Expenditures -Congress passed the money owed to the United States and used the funds to pay. Chapter 9 : Federal Spending: Where Does the Money Go Report for issued for half calendar year. n-usunited States Appropriations and expenditures Periodicals Expenditures, Public Periodicals Finance United States Periodicals Account of the receipts and expenditures of the United States, for Page 6
the year. Page 7