Government Receipts and Expenditures

First Quarter of 2019

By Kelly Ramey  |  Volume 99, Number 6  |  June 17, 2019

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Net government saving, the difference between current receipts and current expenditures in the federal government and state and local governments, was −$1,316.4 billion in the first quarter of 2019, decreasing $33.8 billion from −$1,282.6 billion in the fourth quarter of 2018 (charts 1 and 2 and table 1).

“Net lending or net borrowing (−)” is an alternative measure of the government fiscal position. Net borrowing is the financing requirement of the government sector, and it is derived as net government saving plus the consumption of fixed capital and net capital transfers received less gross investment and net purchases of nonproduced assets.

Net borrowing was $1,444.1 billion in the first quarter, increasing $51.7 billion from $1,392.4 billion in the fourth quarter (charts 3 and 4 and table 1).

Chart 1. Current Receipts and Expenditures: Change From Preceding Quarter. Bar chart.

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Chart 2. Net Saving. Bar Chart.

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Chart 3. Total Receipts and Expenditures: Change From Preceding Quarter. Bar chart.

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Chart 4. Net Lending or Net Borrowing. Bar Chart.

[Click chart to expand]

Table 1. Net Government Saving and Net Lending or Net Borrowing
[Billions of dollars, seasonally adjusted at annual rates]
Line   Level Change from preceding quarter
2019 2018 2018 2018 2019
I II III IV I
1 Current receipts 5,626.5 47.4 116.3 −1.6 51.3
2 Current expenditures 6,942.9 83.2 72.2 89.0 85.1
             
3 Net government saving −1,316.4 −35.9 44.0 −90.5 −33.8
4 Federal −1,095.2 −23.8 33.1 −58.9 −75.7
5 State and local −221.2 −12.0 10.9 −31.6 41.9
             
6 Net lending or net borrowing (−) −1,444.1 −46.2 20.9 −67.4 −51.7
7 Federal −1,153.3 −25.7 8.0 −38.6 −77.2
8 State and local −290.8 −20.5 13.0 −28.9 25.5

Net federal government saving was −$1,095.2 billion in the first quarter, decreasing $75.7 billion from −$1,019.5 billion in the fourth quarter (table 2). In the first quarter, both current receipts and current expenditures accelerated.

Federal government net borrowing was $1,153.3 billion in the first quarter, increasing $77.2 billion from $1,076.1 billion in the fourth quarter.

  • Personal current taxes (line 3) accelerated in the first quarter, reflecting the pattern of wages and salaries.
  • Taxes on production and imports (line 4) turned down in the first quarter, reflecting a downturn in excise taxes and a deceleration in customs duties. The downturn in excise taxes reflected a temporary moratorium on the collection of annual fees established by the Affordable Care Act from health insurance companies. Fourth-quarter customs duties were boosted by new tariffs that began in late September on certain imported goods from China.
  • Contributions for government social insurance (line 7) accelerated in the first quarter. Contributions for social security by employers, employees, and the self-employed were boosted as a result of an increase in the maximum taxable wage base. Contributions for Medicare were boosted $6.8 billion as a result of premium increases.
  • Income receipts on assets (line 8) decreased more in the first quarter, reflecting a larger decrease in dividends from the regional Federal Reserve Banks and a downturn in dividends from Fannie Mae and Freddie Mac.
  • Current transfer receipts (line 9) turned up in the first quarter, reflecting the pattern of fines and settlements paid to the U.S. government. First-quarter receipts were boosted $1.9 billion ($7.6 billion at an annual rate) from fines paid by foreign businesses.
  • Government social benefits to persons (line 17) accelerated in the first quarter, reflecting a cost-of-living adjustment that boosted benefits for social security, veterans’ pensions, and supplemental security income. Additionally, payments of health insurance premium tax credits related to the Affordable Care Act turned up.
  • Grants-in-aid to state and local governments (line 20) turned up in the first quarter, reflecting an upturn in grants for Medicaid and for other health programs.
  • Interest payments (line 22) turned down in the first quarter, reflecting a larger decrease in interest paid on Treasury Inflation-Protected Securities.
  • Subsidies (line 23) turned down in the first quarter, reflecting the pattern of agricultural subsidies from the U.S. Department of Agriculture Market Facilitation Program, which provides relief from tariffs on certain farm products.
  • Capital transfer payments (line 33) turned up; third-quarter transfers were boosted by the payment of $5.0 billion ($20.0 billion at an annual rate) in disaster-related insurance benefits from the National Flood Insurance Program for Hurricane Florence.
Table 2. Federal Government Current Receipts and Expenditures
[Billions of dollars, seasonally adjusted at annual rates]
Line   Level Change from preceding quarter
2019 2018 2018 2018 2019
I II III IV I
1 Current receipts 3,563.7 27.9 91.3 4.6 11.6
2 Current tax receipts 2,018.6 27.8 37.3 34.8 9.9
3 Personal current taxes 1,660.8 15.3 26.1 12.8 22.7
4 Taxes on production and imports 167.6 2.5 6.9 21.8 −13.1
5 Taxes on corporate income 162.0 9.1 4.6 −1.8 1.1
6 Taxes from the rest of the world 28.3 1.0 −0.3 2.1 −0.8
7 Contributions for government social insurance 1,377.3 8.7 14.7 6.4 20.0
8 Income receipts on assets 104.8 −9.6 13.8 −0.1 −21.7
9 Current transfer receipts 70.6 2.9 25.2 −36.2 1.6
10 Current surplus of government enterprises −7.6 −1.8 0.2 −0.3 1.8
             
11 Current expenditures 4,658.9 51.7 58.2 63.6 87.2
12 Consumption expenditures 1,056.4 15.2 13.4 4.9 10.2
13 National defense 646.3 11.8 10.2 9.0 8.7
14 Nondefense 410.2 3.5 3.2 −4.2 1.7
15 Current transfer payments 2,981.6 28.7 24.3 21.0 107.5
16 Government social benefits 2,342.2 16.6 23.3 30.2 99.9
17 To persons 2,318.8 16.6 23.2 30.3 99.4
18 To the rest of the world 23.4 0.0 0.1 −0.2 0.6
19 Other current transfer payments 639.4 12.1 1.0 −9.2 7.6
20 Grants-in-aid to state and local governments 578.0 −2.6 10.4 −17.4 8.4
21 To the rest of the world 61.4 14.7 −9.4 8.2 −0.8
22 Interest payments 547.0 9.0 19.9 12.3 −19.7
23 Subsidies 73.9 −1.3 0.7 25.3 −10.8
             
24 Net federal government saving −1,095.2 −23.8 33.1 −58.9 −75.7
25 Social insurance funds −426.6 −10.2 −9.5 −24.2 −38.5
26 Other −668.6 −13.7 42.6 −34.7 −37.2
             
  Addenda:
27 Total receipts 3,585.1 26.1 91.2 4.5 10.2
28 Current receipts 3,563.7 27.9 91.3 4.6 11.6
29 Capital transfer receipts 21.4 −1.8 −0.1 −0.1 −1.4
30 Total expenditures 4,738.4 51.8 83.3 43.0 87.4
31 Current expenditures 4,658.9 51.7 58.2 63.6 87.2
32 Gross government investment 298.8 2.9 3.1 7.6 3.0
33 Capital transfer payments 75.8 −0.6 24.2 −23.5 2.8
34 Net purchases of nonproduced assets −6.8 −0.2 0.1 −2.7 −3.5
35 Less: Consumption of fixed capital 288.3 2.1 2.3 1.7 2.3
36 Net lending or net borrowing (−) −1,153.3 −25.7 8.0 −38.6 −77.2

 

Net state and local government saving was −$221.2 billion in the first quarter, increasing $41.9 billion from −$263.1 billion in the fourth quarter. In the first quarter, current receipts turned up, and current expenditures decelerated (table 3).

State and local government net borrowing was $290.8 billion, decreasing $25.5 billion from $316.3 billion in the fourth quarter.

  • Personal current taxes (line 3) turned up in the first quarter, reflecting an upturn in personal income taxes.
  • Federal grants-in-aid (line 9) turned up in the first quarter, reflecting an upturn in grants for Medicaid and other health care programs.
  • Other current transfer receipts (line 10) turned down in the first quarter. Fourth-quarter receipts were boosted by a settlement from the foreign parent of Société Générale S.A. to the state of New York for concealing transactions that violated sanctions.
  • Government social benefits (line 14) turned up in the first quarter, reflecting an upturn in Medicaid benefits.
  • Gross government investment (line 25) turned up in the first quarter, reflecting upturns in investment for structures and equipment.
Table 3. State and Local Government Current Receipts and Expenditures
[Billions of dollars, seasonally adjusted at annual rates]
Line   Level Change from preceding quarter
2019 2018 2018 2018 2019
I II III IV I
1 Current receipts 2,640.8 16.8 35.5 −23.6 48.1
2 Current tax receipts 1,813.2 17.0 22.7 −13.2 42.6
3 Personal current taxes 442.1 −10.0 3.5 −16.8 19.3
4 Taxes on production and imports 1,303.9 13.0 14.9 12.0 15.6
5 Taxes on corporate income 67.2 13.9 4.4 −8.5 7.7
6 Contributions for government social insurance 22.3 0.3 0.3 0.2 0.2
7 Income receipts on assets 88.5 0.6 0.3 0.2 0.8
8 Current transfer receipts 721.4 −0.7 12.4 −10.4 4.9
9 Federal grants-in-aid 578.0 −2.6 10.4 −17.4 8.4
10 Other 143.4 2.0 1.9 7.0 −3.5
11 Current surplus of government enterprises −4.5 −0.3 −0.2 −0.4 −0.3
             
12 Current expenditures 2,862.0 28.9 24.5 8.0 6.2
13 Consumption expenditures 1,831.9 18.7 19.7 12.0 −2.9
14 Government social benefits 754.9 13.1 6.9 −2.8 11.2
15 Interest payments 274.7 −3.0 −2.1 −1.2 −2.0
16 Subsidies 0.6 0.0 0.0 0.0 0.0
             
17 Net state and local government saving −221.2 −12.0 10.9 −31.6 41.9
18 Social insurance funds 4.7 0.1 0.1 0.1 0.1
19 Other −225.9 −12.2 10.9 −31.7 41.8
             
  Addenda:
20 Total receipts 2,715.0 16.6 42.9 −29.1 51.0
21 Current receipts 2,640.8 16.8 35.5 −23.6 48.1
22 Capital transfer receipts 74.2 −0.2 7.5 −5.6 2.9
23 Total expenditures 3,005.8 37.1 29.9 −0.4 25.6
24 Current expenditures 2,862.0 28.9 24.5 8.0 6.2
25 Gross government investment 413.5 12.9 7.7 −5.4 20.7
26 Capital transfer payments          
27 Net purchases of nonproduced assets 15.3 0.3 0.3 0.3 0.4
28 Less: Consumption of fixed capital 285.0 4.8 2.8 3.1 1.8
29 Net lending or net borrowing (−) −290.8 −20.5 13.0 −28.9 25.5