Government receipts and expenditures: fourth quarter of 2007.
Chaudhuri, Debasis
NET GOVERNMENT saving, the difference between current receipts and
current expenditures of the federal government and state and local
governments, was -$268.5 billion in the fourth quarter of 2007,
decreasing $25.3 billion from -$243.2 billion in the third quarter.
Net federal government saving was -$226.7 billion in the fourth
quarter, increasing $3.6 billion from -$230.3 billion in the third
quarter (see page 7). Both current receipts and current expenditures
decelerated.
Net state and local government saving was -$41.9 billion in the
fourth quarter, decreasing $28.9 billion from -$13.0 billion in the
third quarter (see page 8). Both current receipts and current
expenditures accelerated.
Net borrowing was $469.9 billion in the fourth quarter, increasing
$32.1 billion from $437.8 billion in the third quarter. Federal
government net borrowing was $298.9 billion in the fourth quarter,
decreasing $4.8 billion from $303.7 billion in the third quarter. State
and local government net borrowing was $171.1 billion in the fourth
quarter, increasing $37.0 billion from $134.1 billion in the third
quarter.
[GRAPHIC 1 OMITTED]
Federal Government
Personal current taxes decelerated, reflecting a deceleration in
withheld income taxes.
Taxes on production and imports decelerated, reflecting a downturn in excise taxes for gasoline and air transportation.
Taxes on corporate income decreased less than in the third quarter,
reflecting the continued weakness in corporate profits.
Contributions for government social insurance decelerated,
reflecting a deceleration in contributions for social security (old-age,
survivors, disability, and health insurance trust funds).
Current surplus of government enterprises turned down, reflecting a
downturn in the Postal Service. The third-quarter surplus was boosted by
rate increases that took effect in May.
National defense consumption expenditures decelerated, reflecting a
deceleration in spending for services and downturns in spending for
durable and nondurable goods.
Government social benefits to persons decelerated, reflecting a
downturn in benefits for Medicare. Benefits for prescription drugs were
reduced as a result of the refunds collected from drug plans, following
the program reconciliation for 2006 that showed that these plans, on
balance, were overpaid.
Current transfer payments to the rest of the world accelerated,
reflecting an acceleration in payments to Afghanistan and an upturn in
payments to Iraq.
Interest payments decreased more than in the third quarter,
reflecting a bigger decrease in interest paid on the public debt.
Federal Government Estimates
Estimates of federal government current receipts, current
expenditures, and net federal government saving are based on data from
the federal budget, from the Monthly Treasury Statement and other
reports from the Department of the Treasury, and from other federal
government agencies. Total receipts, total expenditures, and net lending
or net borrowing, which are alternative measures of the federal fiscal
position, are based on these same sources.
Quarterly and annual estimates are published monthly in NIPA table
3.2. Detailed annual estimates of these transactions by component are
published annually in NIPA tables 3.4-3.8, 3.12, and 3.13. Detailed
quarterly estimates are available in underlying NIPA tables at
<www.bea.gov/bea/ dn/nipaweb/nipa_underlying/Index.asp>.
Each year, BEA translates the information in the federal budget
into a NIPA framework. (1) For a historical time series of these
estimates, see NIPA table 3.18B, which is published annually in October.
(1.) See Benjamin A. Mandel and Andrew E. Vargo, "NIPA
Translation of the Fiscal Year 2009 Federal Budget," SURVEY or
CURRENT BUSINESS 88 (March 2008): 19-27.
State and Local Government
Personal current taxes turned up, reflecting an upturn in state
personal income taxes.
Taxes on production and imports accelerated, reflecting an upturn
in severance taxes and an acceleration in sales taxes.
Taxes on corporate income decreased less than in the third quarter,
reflecting the continued weakness in corporate profits.
Consumption expenditures accelerated, reflecting an acceleration in
spending for nondurable goods.
Estimates of State and Local Government Receipts and Expenditures
The estimates of state and local government current receipts and
expenditures and total receipts and expenditures are mainly based on
compilations of data for state and local government finances. The Census
Bureau produces the primary source data: the census of governments that
is conducted in years that end in a 2 or a 7 and the Government Finances
series of surveys for the other years. In addition, other sources of
Census Bureau data are from the Quarterly Summary of State and Local
Government Tax Revenue and the monthly Value of Construction Put in
Place. Data sources from the Bureau of Labor Statistics include the
Quarterly Census of Employment and Wages and the Employment Cost Index.
Quarterly and annual estimates are available monthly in NIPA table
3.3. Detailed annual estimates of state and local government
transactions by component are available annually in NIPA tables 3.4-3.8,
3.12, and 3.13. Detailed quarterly estimates are available in underlying
NIPA tables at <www.bea.gov/bea/dn/nipaweb/nipa_underlying/
Index.asp>. For a historical time series of reconciliations of the
NIPA estimates with the Census Bureau data from Government Finances, see
NIPA table 3.19.
BEA also prepares annual estimates of receipts and expenditures of
state governments and of local governments. (1) These estimates are
available annually in NIPA table 3.20 (state government receipts and
expenditures) and in NIPA table 3.21 (local government receipts and
expenditures); see "Newly Available NIPA Tables" in the
October 2007 SURVEY.
(1.) Bruce E. Baker, "Receipts and Expenditures of State
Governments and of Local Governments," SURVEY 85 (October 2005):
5-10.
Table 1. Net Government Saving and Net Lending or Net Borrowing
[Billions of dollars, seasonally adjusted at annual rates]
Level Change from preceding quarter
2007 2007
IV I II III IV
Current receipts 4,232.1 85.0 81.6 19.2 29.0
Current expenditures 4,500.6 135.5 50.6 69.2 54.2
Net government saving -268.5 -50.4 30.9 -49.8 -25.3
Federal -226.7 -37.0 11.7 -23.5 3.6
State and local -41.9 -13.4 19.2 -26.4 -28.9
Net lending or net
borrowing (-) -469.9 -118.0 30.9 -64.2 -32.1
Federal -298.9 -89.2 10.5 -38.6 4.8
State and local -171.1 -28.8 20.4 -25.6 -37.0
Table 2. Federal Government Current Receipts and Expenditures
[Billions of dollars, seasonally adjusted at annual rates]
Level Change from preceding quarter
2007 2007
IV I II III IV
Current receipts 2,706.5 57.8 50.4 19.3 17.1
Current tax receipts 1,675.5 33.6 44.2 4.0 8.3
Personal current taxes 1,187.2 39.0 12.9 19.0 16.5
Taxes on production and
imports 102.2 0.7 0.4 3.1 0.8
Taxes on corporate income 369.1 0.1 31.0 -18.8 -13.4
Taxes from the rest of the
world 17.0 -6.3 0.0 0.6 4.4
Contributions for government
social insurance 964.6 25.2 2.3 11.0 7.3
Income receipts on assets 25.4 -0.8 0.5 0.2 0.1
Current transfer receipts 41.4 1.4 0.4 0.9 2.0
Current surplus of
government enterprises -0.4 -1.8 3.1 3.2 -0.6
Current expenditures 2,933.2 94.8 38.7 42.8 13.5
Consumption expenditures 876.9 3.4 20.0 17.9 9.2
National defense 596.4 -5.8 18.1 15.8 6.8
Nondefense 280.5 9.1 2.0 2.1 2.4
Current transfer payments 1,714.5 66.0 5.3 25.5 18.1
Government social benefits 1,291.1 34.5 22.9 14.9 4.8
To persons 1,287.5 34.5 22.8 14.8 4.9
To the rest of the world 3.5 0.1 0.1 0.1 -0.2
Other current transfer
payments 423.4 31.4 -17.5 10.7 13.2
Grants-in-aid to state and
local governments 380.7 16.9 2.1 3.0 1.6
To the rest of the world 42.7 14.5 -19.7 7.8 11.6
Interest payments 294.7 26.3 13.1 -0.1 -14.6
Subsidies 47.1 -0.8 0.3 -0.7 0.9
Less: Wage accruals less
disbursements 0.0 0.0 0.0 0.0 0.0
Net federal government
saving -226.7 -37 11.7 -23.5 3.6
Social insurance funds -12.1 -6.3 -17.8 -2.3 7.1
Other -214.6 -30.7 29.5 -21.2 -3.5
Addenda:
Total receipts 2,734.8 52.3 57.1 16.4 19.7
Current receipts 2,706.5 57.8 50.4 19.3 17.1
Capital transfer
receipts 28.2 -5.5 6.7 -2.8 2.4
Total expenditures 3,033.6 141.5 46.6 55.0 14.8
Current expenditures 2,933.2 94.8 38.7 42.8 13.5
Gross government
investment 120.8 -0.5 3.0 2.8 -1.8
Capital transfer
payments 93.5 3.5 7.5 5.7 8.2
Net purchases of
nonproduced assets -1.7 50.8 -1.0 4.5 -3.9
Less: Consumption of
fixed capital 112.0 1.1 1.6 0.7 1.1
Net lending or net
borrowing (-) -298.9 -89.2 10.5 -38.6 4.8
Table 3. State and Local Government Current Receipts and Expenditures
[Billions of dollars, seasonally adjusted at annual rates]
Level Change from preceding quarter
2007 2007
IV I II III IV
Current receipts 1,906.2 44.2 33.3 2.9 13.4
Current tax receipts 1,305.1 25.3 28.5 -3.0 9.0
Personal current taxes 320.9 14.6 10.0 -6.8 1.8
Taxes on production and
imports 922.5 11.4 12.8 7.2 9.5
Taxes on corporate income 61.7 -0.6 5.6 -3.3 -2.4
Contributions for
government social
insurance 26.0 -0.1 0.1 0.0 0.1
Income receipts on assets 90.8 0.0 0.6 1.1 0.8
Current transfer receipts 497.0 18.9 4.3 5.2 3.9
Federal grants-in-aid 380.7 16.9 2.1 3.0 1.6
Other 116.3 1.9 2.3 2.3 2.2
Current surplus of
government enterprises -12.7 -0.1 -0.2 -0.4 -0.3
Current expenditures 1,948.1 57.6 14.1 29.3 42.3
Consumption expenditures 1,406.4 25.9 29.2 18.4 32.1
Government social benefits 440.9 30.6 -16.6 10.2 9.2
Interest payments 100.4 1.2 1.3 0.7 1.1
Subsidies 0.4 0.0 0.0 0.0 0.0
Less: Wage accruals less
disbursements 0.0 0.0 0.0 0.0 0.0
Net state and local
government saving -41.9 -13.4 19.2 -26.4 -28.9
Social insurance funds 5.9 -0.3 -0.1 -0.2 -0.1
Other -47.8 -13.2 19.4 -26.2 -28.8
Addenda:
Total receipts 1,966.4 37.9 40.7 8.0 10.4
Current receipts 1,906.2 44.2 33.3 2.9 13.4
Capital transfer receipts 60.2 -6.3 7.5 5.0 -2.9
Total expenditures 2,137.4 66.6 20.4 33.6 47.3
Current expenditures 1,948.1 57.6 14.1 29.3 42.3
Gross government
investment 360.3 14.1 9.5 7.4 8.4
Capital transfer payments
Net purchases of
nonproduced assets 11.4 0.0 0.0 0.0 0.0
Less: Consumption of fixed
capital 182.4 5.1 3.2 3.1 3.4
Net lending or net
borrowing (-) -171.1 -28.8 20.4 -25.6 -37.0