Government Receipts and Expenditures
Third Quarter of 2023
Net government saving, the difference between current receipts and current expenditures in the federal government and state and local governments, was −$1,889.2 billion in the third quarter of 2023, decreasing $38.8 billion from −$1,850.4 billion in the second quarter of 2023 (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 $2,575.8 billion in the third quarter, increasing $484.1 billion from $2,091.7 billion in the second quarter (charts 3 and 4 and table 1).
| Line | Component | Level | Change from preceding quarter | |||
|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | ||||
| Q3 | Q4 | Q1 | Q2 | Q3 | ||
| 1 | Current receipts | 7,393.5 | −26.2 | −312.4 | −56.0 | 102.7 |
| 2 | Current expenditures | 9,282.8 | 213.1 | 133.1 | 57.4 | 141.5 |
| 3 | Net government saving | −1,889.2 | −239.3 | −445.5 | −113.3 | −38.8 |
| 4 | Federal | −1,676.0 | −168.5 | −432.5 | 8.0 | −10.3 |
| 5 | State and local | −213.2 | −70.8 | −13.0 | −121.3 | −28.5 |
| 6 | Net lending or net borrowing (−) | −2,575.8 | −266.9 | −518.0 | −150.9 | −484.1 |
| 7 | Federal | −2,277.9 | −175.1 | −437.2 | −14.9 | −440.5 |
| 8 | State and local | −298.0 | −91.9 | −80.8 | −136.0 | −43.7 |
Net federal government saving was −$1,676.0 billion in the third quarter, decreasing $10.3 billion from −$1665.7 billion in the second quarter (table 2). In the third quarter, current receipts and current expenditures accelerated relative to the second quarter.
Federal government net borrowing was $2,277.9 billion in the third quarter, increasing $440.5 billion from $1,837.4 billion in the second quarter.
- Personal current taxes (line 3) turned up in the third quarter, increasing $4.7 billion after decreasing $5.9 billion in the second quarter, reflecting a smaller decrease in declarations.
- Income receipts on assets (line 8) turned up in the third quarter, increasing $5.4 billion after decreasing $1.1 billion in the second quarter, reflecting the end of a temporary moratorium on the collection of interest on direct student loans originally authorized by the Coronavirus Aid, Relief, and Economic Security Act.
- Consumption expenditures (line 12) accelerated in the third quarter, increasing $39.1 billion after increasing $4.2 billion in the second quarter, reflecting an acceleration in national defense consumption expenditures (line 13) and an upturn in nondefense consumption expenditures (line 14). The acceleration in national defense consumption expenditures reflects an acceleration in spending for defense services and an upturn in defense purchases of nondurable goods, specifically petroleum products. The upturn in nondefense consumption expenditures reflects a downturn in sales to other sectors, specifically a decrease in Strategic Petroleum Reserve sales.
- Government social benefits to persons (line 16) turned up in the third quarter, increasing $0.4 billion after decreasing $16.1 billion in the second quarter. Supplemental Nutrition Assistance Program (SNAP) benefits decreased less, decreasing $0.1 billion in the third quarter after decreasing $27.0 billion in the second quarter. The change in the second quarter reflected a return to normal benefit payments, which exclude emergency supplements that were temporarily authorized by Congress to assist during the pandemic. The Consolidated Appropriations Act, 2023 ended these emergency allotments. Partially offsetting the smaller decrease, social security benefits decelerated, increasing $7.5 billion in the third quarter after increasing $13.8 billion in the previous quarter.
- Grants-in-aid to state and local governments (line 20) decreased more in the third quarter, decreasing $55.6 billion after decreasing $0.5 billion in the second quarter, reflecting a downturn in Medicaid grants in the third quarter. The change reflects the end of the Medicaid continuous enrollment condition that was put in place during the COVID–19 public health emergency. Most states began the “unwinding process” of disenrolling Medicaid recipients in the third quarter.
- Interest payments (line 22) accelerated in the third quarter, increasing $71.7 billion after increasing $35.8 billion in the second quarter. Interest paid on treasury bills and notes accelerated.
- Subsidies (line 23) turned up in the third quarter, increasing $3.2 billion after decreasing $1.5 billion in the second quarter, reflecting an upturn in funding for Community Development Financial Institution (CDFI) programs. The additional funding will enhance the ability of CDFIs to help low- and moderate-income communities recover from the pandemic.
- Capital transfer payments (line 33) accelerated in the third quarter, increasing $428.0 billion after increasing $17.8 billion in the second quarter, reflecting the cancellation of $448.0 billion of student loan debt. The $448.0 billion of loan forgiveness includes forgiveness for borrowers who are eligible through income-driven-repayment plans, Public Service Loan Forgiveness programs, borrowers with a total and permanent disability, and borrowers who were cheated by their schools, saw their institutions precipitously close, or are covered by related court settlements.
| Line | Component | Level | Change from preceding quarter | |||
|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | ||||
| Q3 | Q4 | Q1 | Q2 | Q3 | ||
| 1 | Current receipts | 4,724.4 | −57.2 | −283.4 | 29.5 | 43.8 |
| 2 | Current tax receipts | 2,803.8 | −53.2 | −296.8 | 7.6 | 15.1 |
| 3 | Personal current taxes | 2,179.8 | −31.8 | −309.1 | −5.9 | 4.7 |
| 4 | Taxes on production and imports | 171.6 | −11.3 | −3.9 | −1.6 | −3.8 |
| 5 | Taxes on corporate income | 418.0 | −10.0 | 15.0 | 14.7 | 14.7 |
| 6 | Taxes from the rest of the world | 34.4 | −0.1 | 1.2 | 0.4 | −0.5 |
| 7 | Contributions for government social insurance | 1,798.4 | 7.1 | 41.8 | 20.2 | 19.7 |
| 8 | Income receipts on assets | 47.3 | −26.4 | −13.5 | −1.1 | 5.4 |
| 9 | Current transfer receipts | 67.1 | 15.2 | −15.3 | 2.7 | 3.8 |
| 10 | Current surplus of government enterprises | 7.8 | 0.1 | 0.3 | 0.2 | −0.2 |
| 11 | Current expenditures | 6,400.4 | 111.3 | 149.1 | 21.5 | 54.1 |
| 12 | Consumption expenditures | 1,346.3 | 35.5 | 35.1 | 4.2 | 39.1 |
| 13 | National defense | 789.1 | 11.8 | 16.4 | 4.9 | 24.2 |
| 14 | Nondefense | 557.2 | 23.8 | 18.7 | −0.7 | 14.9 |
| 15 | Current transfer payments | 3,970.5 | 9.1 | 77.7 | −16.9 | −59.9 |
| 16 | Government social benefits | 2,962.4 | 29.1 | 51.3 | −15.5 | 0.9 |
| 17 | To persons | 2,930.1 | 29.3 | 49.1 | −16.1 | 0.4 |
| 18 | To the rest of the world | 32.2 | −0.2 | 2.2 | 0.6 | 0.4 |
| 19 | Other current transfer payments | 1,008.1 | −20.0 | 26.4 | −1.5 | −60.7 |
| 20 | Grants-in-aid to state and local governments | 918.5 | −4.0 | 28.4 | −0.5 | −55.6 |
| 21 | To the rest of the world | 89.5 | −16.0 | −2.0 | −0.9 | −5.3 |
| 22 | Interest payments | 981.3 | 75.8 | 44.2 | 35.8 | 71.7 |
| 23 | Subsidies | 102.4 | −9.1 | −7.9 | −1.5 | 3.2 |
| 24 | Net federal government saving | −1,676.0 | −168.5 | −432.5 | 8.0 | −10.3 |
| 25 | Social insurance funds | −525.0 | −12.5 | −69.7 | −1.7 | 6.7 |
| 26 | Other | −1,151.0 | −156.1 | −362.7 | 9.7 | −17.0 |
| Addenda: | ||||||
| 27 | Total receipts | 4,753.6 | −59.2 | −285.2 | 30.3 | 42.0 |
| 28 | Current receipts | 4,724.4 | −57.2 | −283.4 | 29.5 | 43.8 |
| 29 | Capital transfer receipts | 29.1 | −2.0 | −1.8 | 0.8 | −1.9 |
| 30 | Total expenditures | 7,031.4 | 115.9 | 152.0 | 45.2 | 482.4 |
| 31 | Current expenditures | 6,400.4 | 111.3 | 149.1 | 21.5 | 54.1 |
| 32 | Gross government investment | 445.7 | 19.9 | 3.8 | 9.5 | 8.5 |
| 33 | Capital transfer payments | 561.3 | −100.9 | 3.9 | 17.8 | 428.0 |
| 34 | Net purchases of nonproduced assets | −3.5 | 90.2 | 0.6 | 0.1 | −3.8 |
| 35 | Less: Consumption of fixed capital | 372.5 | 4.6 | 5.3 | 3.7 | 4.5 |
| 36 | Net lending or net borrowing (−) | −2,277.9 | −175.1 | −437.2 | −14.9 | −440.5 |
Net state and local government saving was −$213.2 billion in the third quarter, decreasing $28.5 billion from −$184.7 billion in the second quarter. In the third quarter, current receipts turned up and current expenditures decelerated relative to the second quarter (table 3).
In the third quarter, net borrowing was $298.0 billion, increasing $43.7 billion from $254.3 billion in the second quarter.
- Personal current taxes (line 3) turned up in the third quarter, increasing $47.8 billion after decreasing $53.9 billion, reflecting an upturn in personal income taxes.
- Taxes on production and imports (line 4) turned up in the third quarter, increasing $13.0 billion after decreasing $7.9 billion in the second quarter, reflecting an upturn in state excise taxes, an acceleration in state and local sales taxes and a smaller decrease in severance taxes.
- Taxes on corporate income (line 5) decreased less, decreasing $2.0 billion after decreasing $21.8 billion.
- Federal grants-in-aid (line 9) decreased more in the third quarter, decreasing $55.6 billion after decreasing $0.5 billion in the second quarter, reflecting a downturn in Medicaid grants in the third quarter.
- Consumption expenditures (line 13) turned up in the third quarter, increasing $55.6 billion after decreasing $10.8 billion in the second quarter, reflecting an upturn in spending on nondurable goods, specifically petroleum. In addition, spending on compensation of government employees accelerated.
- Government social benefits (line 14) turned down in the third quarter, decreasing $29.9 billion after increasing $31.8 billion in the second quarter, reflecting a downturn in Medicaid benefits.
| Line | Component | Level | Change from preceding quarter | |||
|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | ||||
| Q3 | Q4 | Q1 | Q2 | Q3 | ||
| 1 | Current receipts | 3,587.6 | 27.0 | −0.6 | −86.0 | 3.3 |
| 2 | Current tax receipts | 2,384.5 | 12.6 | 3.6 | −83.7 | 58.9 |
| 3 | Personal current taxes | 576.6 | −9.6 | −22.9 | −53.9 | 47.8 |
| 4 | Taxes on production and imports | 1,659.2 | 7.8 | 14.5 | −7.9 | 13.0 |
| 5 | Taxes on corporate income | 148.7 | 14.3 | 12.0 | −21.8 | −2.0 |
| 6 | Contributions for government social insurance | 21.9 | −0.4 | −0.5 | −0.1 | 0.5 |
| 7 | Income receipts on assets | 100.1 | 1.5 | 0.3 | 0.8 | −0.5 |
| 8 | Current transfer receipts | 1,100.3 | 20.3 | 1.1 | 0.1 | −54.5 |
| 9 | Federal grants-in-aid | 918.5 | −4.0 | 28.4 | −0.5 | −55.6 |
| 10 | Other | 181.7 | 24.2 | −27.2 | 0.6 | 1.0 |
| 11 | Current surplus of government enterprises | −19.0 | −7.0 | −5.0 | −3.1 | −1.0 |
| 12 | Current expenditures | 3,800.8 | 97.8 | 12.4 | 35.3 | 31.8 |
| 13 | Consumption expenditures | 2,443.9 | 23.3 | 12.6 | −10.8 | 55.6 |
| 14 | Government social benefits | 1,057.6 | 62.7 | −22.5 | 31.8 | −29.9 |
| 15 | Interest payments | 298.6 | 11.7 | 22.3 | 14.3 | 6.1 |
| 16 | Subsidies | 0.7 | 0.0 | 0.0 | 0.0 | 0.0 |
| 17 | Net state and local government saving | −213.2 | −70.8 | −13.0 | −121.3 | −28.5 |
| 18 | Social insurance funds | 3.4 | −0.4 | −0.6 | −0.2 | 0.4 |
| 19 | Other | −216.6 | −70.3 | −12.5 | −121.1 | −28.9 |
| Addenda: | ||||||
| 20 | Total receipts | 3,687.3 | 6.1 | −54.7 | −79.4 | 7.3 |
| 21 | Current receipts | 3,587.6 | 27.0 | −0.6 | −86.0 | 3.3 |
| 22 | Capital transfer receipts | 99.7 | −20.9 | −54.2 | 6.7 | 4.0 |
| 23 | Total expenditures | 3,985.3 | 98.0 | 26.0 | 56.6 | 51.1 |
| 24 | Current expenditures | 3,800.8 | 97.8 | 12.4 | 35.3 | 31.8 |
| 25 | Gross government investment | 559.0 | 15.7 | 20.1 | 23.0 | 21.8 |
| 26 | Capital transfer payments | … | … | … | … | … |
| 27 | Net purchases of nonproduced assets | 19.8 | 0.1 | 0.2 | 0.2 | 0.1 |
| 28 | Less: Consumption of fixed capital | 394.4 | 5.7 | 6.6 | 2.0 | 2.7 |
| 29 | Net lending or net borrowing (−) | −298.0 | −91.9 | −80.8 | −136.0 | −43.7 |
- …
- Data not available
