Government Receipts and Expenditures
First Quarter of 2023
Net government saving, the difference between current receipts and current expenditures in the federal government and state and local governments, was −$1,832.6 billion in the first quarter of 2023, decreasing $472.5 billion from −$1,360.1 billion in the fourth quarter of 2022 (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 $2,013.0 billion in the first quarter, increasing $540.9 billion from $1,472.1 billion in the fourth quarter (charts 3 and 4 and table 1).
| Line | Component | Level | Change from preceding quarter | |||
|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | ||||
| Q1 | Q2 | Q3 | Q4 | Q1 | ||
| 1 | Current receipts | 7,311.6 | 77.1 | −6.5 | −6.6 | −293.4 |
| 2 | Current expenditures | 9,144.1 | 133.2 | 171.5 | 257.8 | 179.0 |
| 3 | Net government saving | −1,832.6 | −56.2 | −177.9 | −264.4 | −472.5 |
| 4 | Federal | −1,664.0 | 49.1 | −135.8 | −203.6 | −444.7 |
| 5 | State and local | −168.6 | −105.3 | −42.1 | −60.8 | −27.8 |
| 6 | Net lending or net borrowing (−) | −2,013.0 | −257.0 | −261.9 | −281.7 | −540.9 |
| 7 | Federal | −1,777.3 | −626.9 | 194.3 | −203.5 | −446.9 |
| 8 | State and local | −235.7 | 369.9 | −456.2 | −78.2 | −94.0 |
Net federal government saving was −$1,664.0 billion in the first quarter, decreasing $444.7 billion from −$1,219.3 billion in the fourth quarter (table 2). In the first quarter, current receipts decreased more, and current expenditures accelerated relative to the fourth quarter.
Federal government net borrowing was $1,777.3 billion in the first quarter, increasing $446.9 billion from $1,330.4 billion in the fourth quarter.
- Personal current taxes (line 3) decreased more in the first quarter, decreasing $246.2 billion after decreasing $7.7 billion in the fourth quarter, reflecting a larger decrease in nonwithheld taxes. The larger decrease in nonwithheld taxes reflected a downturn in declarations and final settlements and an upturn in refunds. Annual changes for final settlements and refunds, which are primarily based on tax liabilities for previous years, are recorded in the first quarter of the year.
- Taxes on production and imports (line 4) decreased less in the first quarter, decreasing $2.6 billion after decreasing $10.4 billion. Customs duties decreased $3.7 billion after decreasing $11.6 billion in the fourth quarter, primarily reflecting a smaller decrease in imports.
- Taxes on corporate income (line 5) turned up in the first quarter, increasing $10.4 billion after decreasing $8.4 billion in the fourth quarter.
- Contributions for government social insurance (line 7) accelerated in the first quarter, increasing $26.3 billion after increasing $7.6 billion in the fourth quarter, reflecting the pattern of wages. Contributions for FICA (Federal Insurance Contributions Act) by employers, employees, and the self-employed accelerated as well as contributions for Supplementary Medical Insurance premiums paid by persons.
- Income receipts on assets (line 8) decreased less in the first quarter, decreasing $9.6 billion after decreasing $40.0 billion in the fourth quarter. The smaller decrease reflects the pattern of dividends from Federal Reserve banks. Federal Reserve dividends have decreased in recent quarters as the regional banks have become less profitable. As interest rates have risen, the interest expenses of Federal Reserve banks have grown and largely exceed the income that they earn on their asset holdings. When the Federal Reserve experiences losses, it creates a deferred asset, which is effectively an IOU to itself. The Federal Reserve banks will apply future earnings against these deferred assets and will not resume paying dividends to the U.S. Treasury until the deferred amounts are fully settled.
- Current transfer receipts (line 9) turned down in the first quarter, decreasing $15.2 billion after increasing $16.2 billion in the fourth quarter, reflecting downturns in current transfer receipts from business and current transfer receipts from the rest of the world. Fourth-quarter receipts from business were boosted by a $1.7 billion ($6.8 billion at an annual rate) settlement with Wells Fargo for consumer loan abuses and a $0.3 billion ($1.3 billion at an annual rate) settlement with U.S. affiliates of Glencore for bribery and market manipulation. Fourth-quarter receipts from the rest of the world included fines paid by Danske Bank, Lafarge, and Glencore.
- Consumption expenditures (line 12) accelerated, increasing $34.7 billion in the first quarter after increasing $27.7 billion in the fourth quarter, reflecting an acceleration in national defense consumption expenditures. The acceleration in national defense consumption expenditures reflects an acceleration in spending for defense services.
- Government social benefits to persons (line 17) accelerated in the first quarter, increasing $80.2 billion after increasing $42.7 billion in the fourth quarter. The acceleration in the first quarter is based on an acceleration in social security benefits, reflecting an 8.7 percent cost-of-living adjustment in January. Payments of health insurance premium tax credits related to the Affordable Care Act (ACA) turned up, reflecting an increase in the number of people enrolled in ACA plans. Partially offsetting these increases, child tax credit payments and Supplemental Nutrition Assistance Program (SNAP) benefits turned down in the first quarter. The downturn in child tax credit payments reflects the end of the expansion of the credit authorized by the American Rescue Plan Act. The downturn in SNAP benefits reflects a return to normal benefit payments, which now exclude emergency supplements that were temporarily authorized by Congress to assist during the COVID–19 pandemic. The Consolidated Appropriations Act, 2023 passed by Congress ended these emergency allotments.
- Grants-in-aid to state and local governments (line 20) turned up in the first quarter, increasing $27.1 billion after decreasing $0.1 billion in the fourth quarter. An upturn in Medicaid grants and an acceleration in education grants were partially offset by a downturn in grants for general economic and labor affairs.
- Interest payments (line 22) decelerated in the first quarter, reflecting a deceleration in interest paid on treasury bills and notes in addition to a deceleration in interest paid on Treasury Inflation-Protected Securities.
- Capital transfer payments (line 33) turned up in the first quarter, increasing $3.6 billion after decreasing $96.5 billion in the fourth quarter. Capital transfers to the rest of the world accelerated in the first quarter, reflecting support to the war in Ukraine.
| Line | Component | Level | Change from preceding quarter | |||
|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | ||||
| Q1 | Q2 | Q3 | Q4 | Q1 | ||
| 1 | Current receipts | 4,778.7 | 92.7 | −7.5 | −37.6 | −231.5 |
| 2 | Current tax receipts | 2,956.0 | 82.7 | 23.3 | −26.5 | −237.4 |
| 3 | Personal current taxes | 2,387.8 | 34.5 | 43.1 | −7.7 | −246.2 |
| 4 | Taxes on production and imports | 189.8 | 7.0 | −6.6 | −10.4 | −2.6 |
| 5 | Taxes on corporate income | 342.6 | 39.4 | −12.6 | −8.4 | 10.4 |
| 6 | Taxes from the rest of the world | 35.8 | 1.7 | −0.4 | 0.0 | 0.9 |
| 7 | Contributions for government social insurance | 1,711.6 | 19.7 | 40.9 | 7.6 | 26.3 |
| 8 | Income receipts on assets | 43.5 | −18.7 | −57.9 | −40.0 | −9.6 |
| 9 | Current transfer receipts | 63.5 | 12.1 | −13.3 | 16.2 | −15.2 |
| 10 | Current surplus of government enterprises | 4.0 | −3.1 | −0.4 | 5.1 | 4.2 |
| 11 | Current expenditures | 6,442.6 | 43.6 | 128.3 | 166.0 | 213.1 |
| 12 | Consumption expenditures | 1,340.6 | 4.8 | 29.9 | 27.7 | 34.7 |
| 13 | National defense | 765.8 | 18.1 | 16.6 | 8.3 | 14.4 |
| 14 | Nondefense | 574.8 | −13.4 | 13.3 | 19.4 | 20.3 |
| 15 | Current transfer payments | 4,068.3 | 15.3 | 19.1 | 25.5 | 108.1 |
| 16 | Government social benefits | 2,994.5 | −16.2 | −5.6 | 42.6 | 82.5 |
| 17 | To persons | 2,963.0 | −16.5 | −6.4 | 42.7 | 80.2 |
| 18 | To the rest of the world | 31.5 | 0.4 | 0.8 | −0.2 | 2.3 |
| 19 | Other current transfer payments | 1,073.7 | 31.4 | 24.8 | −17.1 | 25.5 |
| 20 | Grants-in-aid to state and local governments | 980.4 | 20.5 | −7.1 | −0.1 | 27.1 |
| 21 | To the rest of the world | 93.3 | 11.0 | 31.9 | −17.0 | −1.6 |
| 22 | Interest payments | 928.9 | 45.2 | 88.3 | 115.8 | 76.3 |
| 23 | Subsidies | 104.8 | −21.6 | −9.1 | −3.0 | −6.0 |
| 24 | Net federal government saving | −1,664.0 | 49.1 | −135.8 | −203.6 | −444.7 |
| 25 | Social insurance funds | −599.4 | 16.9 | 26.6 | −27.3 | −115.3 |
| 26 | Other | −1,064.6 | 32.4 | −162.5 | −176.3 | −329.4 |
| Addenda: | ||||||
| 27 | Total receipts | 4,808.5 | 92.8 | −6.0 | −39.2 | −232.5 |
| 28 | Current receipts | 4,778.7 | 92.7 | −7.5 | −37.6 | −231.5 |
| 29 | Capital transfer receipts | 29.8 | 0.1 | 1.5 | −1.6 | −1.0 |
| 30 | Total expenditures | 6,585.8 | 719.7 | −200.3 | 164.3 | 214.4 |
| 31 | Current expenditures | 6,442.6 | 43.6 | 128.3 | 166.0 | 213.1 |
| 32 | Gross government investment | 391.5 | 4.8 | 4.5 | 9.0 | 3.6 |
| 33 | Capital transfer payments | 113.5 | 371.6 | −254.3 | −96.5 | 3.6 |
| 34 | Net purchases of nonproduced assets | −0.6 | 307.0 | −73.2 | 90.1 | −0.2 |
| 35 | Less: Consumption of fixed capital | 361.2 | 7.3 | 5.5 | 4.3 | 5.8 |
| 36 | Net lending or net borrowing (−) | −1,777.3 | −626.9 | 194.3 | −203.5 | −446.9 |
Net state and local government saving was −$168.6 billion in the first quarter, decreasing $27.8 billion from −$140.8 billion in the fourth quarter. In the first quarter, both current receipts and current expenditures turned down relative to the fourth quarter (table 3).
In the first quarter, net borrowing was $235.7 billion, increasing $94.0 billion from $141.7 billion in the fourth quarter.
- Personal current taxes (line 3) decreased more in the first quarter, reflecting a larger decrease in personal income taxes.
- Taxes on production and imports (line 4) accelerated in the first quarter, reflecting an upturn in state sales taxes.
- Federal grants-in-aid (line 9) turned up in the first quarter, increasing $27.1 billion after decreasing $0.1 billion in the fourth quarter. An upturn in Medicaid grants and an acceleration in education grants were partially offset by a downturn in grants for general economic and labor affairs.
- Other current transfer receipts (line 10) turned down in the first quarter, decreasing $26.6 billion after increasing $25.8 billion, reflecting a downturn in current transfer receipts from the rest of the world. Fourth-quarter receipts were boosted $6.7 billion ($26.8 billion at an annual rate) from two settlements between multiple state governments and Teva Pharmaceuticals and Allergan to resolve opioid-related claims.
- Current surplus of government enterprises (line 11) decreased less in the first quarter, reflecting an acceleration in federal subsidies to housing enterprises and a smaller decrease in federal subsidies to mass transit enterprises.
- Consumption expenditures (line 13) decelerated in the first quarter, reflecting a downturn in spending for nondurable goods, specifically a larger decrease in petroleum.
- Government social benefits (line 14) turned down in the first quarter, decreasing $22.7 billion after increasing $63.0 billion in the fourth quarter, largely reflecting a decrease in state stimulus payments to individuals. More information can be found in the FAQ “How are state refundable tax credits recorded in the National Income and Product Accounts (NIPAs)?”. The downturn was partially offset by an acceleration in Medicaid benefits.
- Capital transfer receipts (line 22) decreased more in the first quarter, decreasing $54.5 billion after decreasing $20.4 billion in the fourth quarter. Fourth-quarter receipts were boosted by settlements totaling $13.4 billion ($53.6 billion at an annual rate) between CVS, Walmart, and Walgreens and certain states to assist with the effects of the opioid epidemic. More information can be found in the FAQ “How do the 2022 national opioid settlements impact the NIPAs?”.
| Line | Component | Level | Change from preceding quarter | |||
|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | ||||
| Q1 | Q2 | Q3 | Q4 | Q1 | ||
| 1 | Current receipts | 3,513.4 | 4.9 | −6.1 | 30.9 | −34.7 |
| 2 | Current tax receipts | 2,251.8 | −29.2 | 12.1 | 8.1 | −34.1 |
| 3 | Personal current taxes | 518.4 | 8.5 | 5.0 | −12.6 | −63.8 |
| 4 | Taxes on production and imports | 1,603.6 | 18.4 | 16.2 | 4.3 | 17.0 |
| 5 | Taxes on corporate income | 129.8 | −56.1 | −9.1 | 16.4 | 12.7 |
| 6 | Contributions for government social insurance | 25.4 | 0.2 | 0.3 | 0.6 | 0.9 |
| 7 | Income receipts on assets | 111.1 | 0.3 | 0.8 | 1.3 | 0.6 |
| 8 | Current transfer receipts | 1,133.6 | 35.4 | −16.4 | 25.7 | 0.6 |
| 9 | Federal grants-in-aid | 980.4 | 20.5 | −7.1 | −0.1 | 27.1 |
| 10 | Other | 153.1 | 14.9 | −9.3 | 25.8 | −26.6 |
| 11 | Current surplus of government enterprises | −8.4 | −1.8 | −3.0 | −4.7 | −2.6 |
| 12 | Current expenditures | 3,681.9 | 110.1 | 36.0 | 91.7 | −7.0 |
| 13 | Consumption expenditures | 2,396.6 | 87.1 | 20.4 | 32.2 | 18.4 |
| 14 | Government social benefits | 1,023.2 | 28.0 | 20.2 | 63.0 | −22.7 |
| 15 | Interest payments | 261.5 | −5.0 | −4.6 | −3.5 | −2.6 |
| 16 | Subsidies | 0.7 | 0.0 | 0.0 | 0.0 | 0.0 |
| 17 | Net state and local government saving | −168.6 | −105.3 | −42.1 | −60.8 | −27.8 |
| 18 | Social insurance funds | 7.5 | −0.2 | 0.3 | 0.7 | 1.2 |
| 19 | Other | −176.1 | −105.0 | −42.4 | −61.5 | −29.0 |
| Addenda: | ||||||
| 20 | Total receipts | 3,597.3 | 472.3 | −394.4 | 10.6 | −89.3 |
| 21 | Current receipts | 3,513.4 | 4.9 | −6.1 | 30.9 | −34.7 |
| 22 | Capital transfer receipts | 84.0 | 467.4 | −388.2 | −20.4 | −54.5 |
| 23 | Total expenditures | 3,833.1 | 102.4 | 61.8 | 88.7 | 4.9 |
| 24 | Current expenditures | 3,681.9 | 110.1 | 36.0 | 91.7 | −7.0 |
| 25 | Gross government investment | 521.1 | 4.8 | 25.5 | 13.4 | 17.7 |
| 26 | Capital transfer payments | … | … | … | … | … |
| 27 | Net purchases of nonproduced assets | 17.6 | 0.2 | 0.0 | 0.1 | −0.1 |
| 28 | Less: Consumption of fixed capital | 387.7 | 12.6 | 9.8 | 6.4 | 6.0 |
| 29 | Net lending or net borrowing (−) | −235.7 | 369.9 | −456.2 | −78.2 | −94.0 |
- …
- Data not available
