Government Receipts and Expenditures
Fourth Quarter of 2023
Net government saving, the difference between current receipts and current expenditures in the federal government and state and local governments, was −$1,770.1 billion in the fourth quarter of 2023, increasing $107.2 billion from −$1,877.3 billion in the third 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 $2,103.1 billion in the fourth quarter, decreasing $460.9 billion from $2,564.0 billion in the third quarter (charts 3 and 4 and table 1).
| Line | Component | Level | Change from preceding quarter | |||
|---|---|---|---|---|---|---|
| 2023 | ||||||
| Q4 | Q1 | Q2 | Q3 | Q4 | ||
| 1 | Current receipts | 7,559.1 | −312.4 | −56.0 | 114.6 | 153.7 |
| 2 | Current expenditures | 9,329.2 | 133.1 | 57.4 | 141.5 | 46.4 |
| 3 | Net government saving | −1,770.1 | −445.5 | −113.3 | −26.9 | 107.2 |
| 4 | Federal | −1,631.1 | −432.5 | 8.0 | 1.6 | 33.0 |
| 5 | State and local | −139.1 | −13.0 | −121.3 | −28.5 | 74.1 |
| 6 | Net lending or net borrowing (−) | −2,103.1 | −518.0 | −150.9 | −472.3 | 460.9 |
| 7 | Federal | −1,849.6 | −437.2 | −14.9 | −428.6 | 416.4 |
| 8 | State and local | −253.5 | −80.8 | −136.0 | −43.7 | 44.5 |
Net federal government saving was −$1,631.1 billion in the fourth quarter, increasing $33.0 billion from −$1,664.1 billion in the third quarter (table 2). In the fourth quarter, both current receipts and current expenditures accelerated relative to the third quarter.
Federal government net borrowing was $1,849.6 billion in the fourth quarter, decreasing $416.4 billion from $2,266.0 billion in the third quarter.
- Personal current taxes (line 3) accelerated in the fourth quarter, increasing $23.8 billion after increasing $13.6 billion in the third quarter. Nonwithheld taxes turned up in the fourth quarter, increasing $3.1 billion after decreasing $16.0 billion in the third quarter.
- Taxes on corporate income (line 5) decelerated in the fourth quarter, increasing $11.4 billion after increasing $14.7 billion in the third quarter.
- Contributions for government social insurance (line 7) decelerated in the fourth quarter, increasing $17.1 billion after increasing $22.7 billion in the third quarter, reflecting the pattern of wages.
- Income receipts on assets (line 8) accelerated in the fourth quarter, increasing $16.2 billion after increasing $5.4 billion in the third 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.
- Current transfer receipts (line 9) accelerated in the fourth quarter, increasing $31.1 billion after increasing $3.8 billion in the third quarter, primarily reflecting an upturn in fines and penalties paid by foreign businesses. Fourth-quarter receipts from the rest of the world included a fine paid by Binance ($4.3 billion, or $17.3 billion at an annual rate) for violations related to the Bank Secrecy Act and the International Emergency Economic Powers Act, as well as failure to register as a money-transmitting business.
- Consumption expenditures (line 12) decelerated, increasing $13.8 billion in the fourth quarter after increasing $39.1 billion in the third quarter, reflecting decelerations in both national defense and nondefense consumption expenditures. The deceleration in national defense consumption expenditures reflects a downturn in spending for defense services. The deceleration in nondefense consumption expenditures reflects a smaller decrease in sales to other sectors, specifically a decrease in Strategic Petroleum Reserve sales.
- Government social benefits to persons (line 17) accelerated in the fourth quarter, increasing $3.9 billion after increasing $0.4 billion in the third quarter, reflecting an acceleration in social security benefits, partially offset by a larger decrease in Supplemental Nutrition Assistance Program benefits.
- Grants-in-aid to state and local governments (line 20) turned up in the fourth quarter, increasing $23.1 billion after decreasing $55.6 billion in the third quarter, reflecting upturns in Medicaid grants and grants for education programs.
- Interest payments (line 22) decelerated in the fourth quarter, increasing $44.5 billion after increasing $71.7 billion in the third quarter, reflecting a deceleration in interest paid on public issues of debt. Interest paid on Treasury bills decelerated.
- Subsidies (line 23) turned down in the fourth quarter, decreasing $3.1 billion after increasing $3.2 billion in the third quarter. The decrease is more than accounted for by a downturn in funding for Community Development Financial Institutions programs.
- Capital transfer payments (line 33) turned down in the fourth quarter, decreasing $396.2 billion after increasing $428.0 billion in the third quarter. The downturn reflects the pattern of student loan cancellations. The loan forgiveness includes forgiveness for borrowers who are eligible through income-driven repayment plans, and the Public Service Loan Forgiveness Program, 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 | ||||||
| Q4 | Q1 | Q2 | Q3 | Q4 | ||
| 1 | Current receipts | 4,834.5 | −283.4 | 29.5 | 55.7 | 98.2 |
| 2 | Current tax receipts | 2,846.7 | −296.8 | 7.6 | 24.0 | 34.0 |
| 3 | Personal current taxes | 2,212.5 | −309.1 | −5.9 | 13.6 | 23.8 |
| 4 | Taxes on production and imports | 169.6 | −3.9 | −1.6 | −3.8 | −2.0 |
| 5 | Taxes on corporate income | 429.4 | 15.0 | 14.7 | 14.7 | 11.4 |
| 6 | Taxes from the rest of the world | 35.2 | 1.2 | 0.4 | −0.5 | 0.8 |
| 7 | Contributions for government social insurance | 1,818.5 | 41.8 | 20.2 | 22.7 | 17.1 |
| 8 | Income receipts on assets | 63.5 | −13.5 | −1.1 | 5.4 | 16.2 |
| 9 | Current transfer receipts | 98.2 | −15.3 | 2.7 | 3.8 | 31.1 |
| 10 | Current surplus of government enterprises | 7.6 | 0.3 | 0.2 | −0.2 | −0.2 |
| 11 | Current expenditures | 6,465.6 | 149.1 | 21.5 | 54.1 | 65.2 |
| 12 | Consumption expenditures | 1,360.1 | 35.1 | 4.2 | 39.1 | 13.8 |
| 13 | National defense | 794.4 | 16.4 | 4.9 | 24.2 | 5.3 |
| 14 | Nondefense | 565.7 | 18.7 | −0.7 | 14.9 | 8.5 |
| 15 | Current transfer payments | 3,980.5 | 77.7 | −16.9 | −59.9 | 10.0 |
| 16 | Government social benefits | 2,966.3 | 51.3 | −15.5 | 0.9 | 3.9 |
| 17 | To persons | 2,934.0 | 49.1 | −16.1 | 0.4 | 3.9 |
| 18 | To the rest of the world | 32.3 | 2.2 | 0.6 | 0.4 | 0.1 |
| 19 | Other current transfer payments | 1,014.2 | 26.4 | −1.5 | −60.7 | 6.1 |
| 20 | Grants-in-aid to state and local governments | 941.6 | 28.4 | −0.5 | −55.6 | 23.1 |
| 21 | To the rest of the world | 72.6 | −2.0 | −0.9 | −5.3 | −16.9 |
| 22 | Interest payments | 1,025.8 | 44.2 | 35.8 | 71.7 | 44.5 |
| 23 | Subsidies | 99.3 | −7.9 | −1.5 | 3.2 | −3.1 |
| 24 | Net federal government saving | −1,631.1 | −432.5 | 8.0 | 1.6 | 33.0 |
| 25 | Social insurance funds | −526.1 | −69.7 | −1.7 | 9.7 | −4.1 |
| 26 | Other | −1,105.0 | −362.7 | 9.7 | −8.1 | 37.1 |
| Addenda: | ||||||
| 27 | Total receipts | 4,864.1 | −285.2 | 30.3 | 53.8 | 98.7 |
| 28 | Current receipts | 4,834.5 | −283.4 | 29.5 | 55.7 | 98.2 |
| 29 | Capital transfer receipts | 29.5 | −1.8 | 0.8 | −1.9 | 0.4 |
| 30 | Total expenditures | 6,713.6 | 152.0 | 45.2 | 482.4 | −317.8 |
| 31 | Current expenditures | 6,465.6 | 149.1 | 21.5 | 54.1 | 65.2 |
| 32 | Gross government investment | 459.9 | 3.8 | 9.5 | 8.5 | 14.2 |
| 33 | Capital transfer payments | 165.1 | 3.9 | 17.8 | 428.0 | −396.2 |
| 34 | Net purchases of nonproduced assets | 0.1 | 0.6 | 0.1 | −3.8 | 3.6 |
| 35 | Less: Consumption of fixed capital | 377.1 | 5.3 | 3.7 | 4.5 | 4.6 |
| 36 | Net lending or net borrowing (−) | −1,849.6 | −437.2 | −14.9 | −428.6 | 416.4 |
Net state and local government saving was −$139.1 billion in the fourth quarter, increasing $74.1 billion from −$213.2 billion in the third quarter. In the fourth quarter, current receipts accelerated, and current expenditures decelerated (table 3).
In the fourth quarter, net borrowing was $253.5 billion, decreasing $44.5 billion from $298.0 billion in the third quarter.
- Personal current taxes (line 3) decelerated in the fourth quarter, increasing $16.0 billion after increasing $47.8 billion in the third quarter, reflecting a deceleration in personal income taxes.
- Taxes on production and imports (line 4) accelerated in the fourth quarter, increasing $18.4 billion after increasing $13.0 billion in the third quarter, reflecting an acceleration in property taxes and an upturn in severance taxes.
- Taxes on corporate income (line 5) turned up in the fourth quarter, increasing $17.0 billion after decreasing $2.0 billion in the third quarter.
- Federal grants-in-aid (line 9) turned up in the fourth quarter, increasing $23.1 billion after decreasing $55.6 billion in the third quarter, reflecting upturns in Medicaid grants and grants for education programs.
- Consumption expenditures (line 13) decelerated in the fourth quarter, increasing $18.7 billion after increasing $55.6 billion in the third quarter, reflecting a downturn in spending on nondurable goods, specifically petroleum. In addition, spending on compensation of government employees decelerated.
- Government social benefits (line 14) decreased less in the fourth quarter, decreasing $12.4 billion after decreasing $29.9 billion in the third quarter, reflecting a smaller decrease in Medicaid benefits.
| Line | Component | Level | Change from preceding quarter | |||
|---|---|---|---|---|---|---|
| 2023 | ||||||
| Q4 | Q1 | Q2 | Q3 | Q4 | ||
| 1 | Current receipts | 3,666.2 | −0.6 | −86.0 | 3.3 | 78.6 |
| 2 | Current tax receipts | 2,435.9 | 3.6 | −83.7 | 58.9 | 51.4 |
| 3 | Personal current taxes | 592.6 | −22.9 | −53.9 | 47.8 | 16.0 |
| 4 | Taxes on production and imports | 1,677.6 | 14.5 | −7.9 | 13.0 | 18.4 |
| 5 | Taxes on corporate income | 165.7 | 12.0 | −21.8 | −2.0 | 17.0 |
| 6 | Contributions for government social insurance | 22.8 | −0.5 | −0.1 | 0.5 | 0.9 |
| 7 | Income receipts on assets | 100.6 | 0.3 | 0.8 | −0.5 | 0.5 |
| 8 | Current transfer receipts | 1,124.7 | 1.1 | 0.1 | −54.5 | 24.4 |
| 9 | Federal grants-in-aid | 941.6 | 28.4 | −0.5 | −55.6 | 23.1 |
| 10 | Other | 183.1 | −27.2 | 0.6 | 1.0 | 1.4 |
| 11 | Current surplus of government enterprises | −17.9 | −5.0 | −3.1 | −1.0 | 1.1 |
| 12 | Current expenditures | 3,805.2 | 12.4 | 35.3 | 31.8 | 4.4 |
| 13 | Consumption expenditures | 2,462.6 | 12.6 | −10.8 | 55.6 | 18.7 |
| 14 | Government social benefits | 1,045.2 | −22.5 | 31.8 | −29.9 | −12.4 |
| 15 | Interest payments | 296.7 | 22.3 | 14.3 | 6.1 | −1.9 |
| 16 | Subsidies | 0.7 | 0.0 | 0.0 | 0.0 | 0.0 |
| 17 | Net state and local government saving | −139.1 | −13.0 | −121.3 | −28.5 | 74.1 |
| 18 | Social insurance funds | 4.1 | −0.6 | −0.2 | 0.4 | 0.7 |
| 19 | Other | −143.2 | −12.5 | −121.1 | −28.9 | 73.4 |
| Addenda: | ||||||
| 20 | Total receipts | 3,763.9 | −54.7 | −79.4 | 7.3 | 76.6 |
| 21 | Current receipts | 3,666.2 | −0.6 | −86.0 | 3.3 | 78.6 |
| 22 | Capital transfer receipts | 97.7 | −54.2 | 6.7 | 4.0 | −2.0 |
| 23 | Total expenditures | 4,017.4 | 26.0 | 56.6 | 51.1 | 32.1 |
| 24 | Current expenditures | 3,805.2 | 12.4 | 35.3 | 31.8 | 4.4 |
| 25 | Gross government investment | 589.3 | 20.1 | 23.0 | 21.8 | 30.3 |
| 26 | Capital transfer payments | … | … | … | … | … |
| 27 | Net purchases of nonproduced assets | 20.0 | 0.2 | 0.2 | 0.1 | 0.2 |
| 28 | Less: Consumption of fixed capital | 397.1 | 6.6 | 2.0 | 2.7 | 2.7 |
| 29 | Net lending or net borrowing (−) | −253.5 | −80.8 | −136.0 | −43.7 | 44.5 |
- …
- Data not available
