Government Receipts and Expenditures
Second Quarter of 2024
Net government saving, the difference between current receipts and current expenditures in the federal government and state and local governments, was −$1,857.2 billion in the second quarter of 2024, decreasing $57.3 billion from −$1,799.9 billion in the first quarter of 2024 (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 $2,161.4 billion in the second quarter, increasing $73.9 billion from $2,087.5 billion in the first quarter (charts 3 and 4 and table 1).
| Line | Level | Change from preceding quarter | ||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | ||||
| Q2 | Q3 | Q4 | Q1 | Q2 | ||
| 1 | Current receipts | 7,958.1 | 106.0 | 109.1 | 165.7 | 65.9 |
| 2 | Current expenditures | 9,815.2 | 146.7 | 69.2 | 235.5 | 123.1 |
| 3 | Net government saving | −1,857.2 | −40.7 | 39.9 | −69.8 | −57.3 |
| 4 | Federal | −1,763.6 | −17.7 | −14.2 | −54.7 | −17.5 |
| 5 | State and local | −93.5 | −23.0 | 54.1 | −15.1 | −39.7 |
| 6 | Net lending or net borrowing (−) | −2,161.4 | −11.4 | 183.7 | −64.1 | −73.9 |
| 7 | Federal | −1,958.6 | 29.4 | 159.8 | −40.9 | −31.8 |
| 8 | State and local | −202.8 | −40.8 | 23.9 | −23.2 | −42.1 |
U.S. Bureau of Economic Analysis
Net federal government saving was −$1,763.6 billion in the second quarter, decreasing $17.5 billion from −$1,746.1 billion in the first quarter (table 2). In the second quarter, current receipts and current expenditures decelerated relative to the first quarter.
Federal government net borrowing was $1,958.6 billion in the second quarter, increasing $31.8 billion from $1,926.8 billion in the first quarter.
- Personal current taxes (line 3) decelerated in the second quarter, increasing $34.8 billion after increasing $73.9 billion in the first quarter, reflecting a deceleration in nonwithheld taxes. The deceleration in nonwithheld taxes reflects a deceleration in declarations and settlements. 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) turned down in the second quarter, decreasing $4.8 billion after increasing $7.9 billion in the first quarter, reflecting a downturn in customs duties collections and an increase in refunds, in addition to a downturn in gasoline excise tax.
- Taxes on corporate income (line 5) turned up in the second quarter, increasing $33.5 billion after decreasing $4.9 billion in the first quarter, reflecting the pattern of corporate profits.
- Contributions for government social insurance (line 7) decelerated in the second quarter, increasing $17.7 billion after increasing $27.9 billion in the first quarter, reflecting decelerations in contributions for FICA (Federal Insurance Contributions Act) by employers, employees, and the self-employed as well as contributions for Supplementary Medical Insurance premiums paid by persons.
- Current transfer receipts (line 9) decreased more in the second quarter, decreasing $11.5 billion after decreasing $6.0 billion in the first quarter, reflecting a decrease in current transfer receipts from business. The first quarter included a fine paid to the federal government by Cummins for alleged violations of the Clean Air Act.
- Consumption expenditures (line 12) decelerated, increasing $19.0 billion in the second quarter after increasing $20.4 billion in the first quarter, reflecting a deceleration in nondefense consumption expenditures partially offset by an acceleration in national defense consumption expenditures. The deceleration in nondefense consumption expenditures reflects a deceleration in nondefense compensation.
- Government social benefits to persons (line 17) decelerated in the second quarter, increasing $42.0 billion after increasing $105.5 billion in the first quarter. The deceleration in the second quarter reflects a deceleration in social security benefits; first-quarter benefits were boosted by a 3.2 percent cost-of-living adjustment. Payments of health insurance premium tax credits related to the Affordable Care Act also decelerated, reflecting the pattern of enrollments.
- Grants-in-aid to state and local governments (line 20) turned up in the second quarter, increasing $8.1 billion after decreasing $0.4 billion in the first quarter. An upturn in education grants and an acceleration in Medicaid grants were partially offset by a downturn in income security grants.
- Interest payments (line 22) decelerated in the second quarter, increasing $29.5 billion after increasing $36.6 billion, reflecting a deceleration in interest paid on public issues of debt.
- Capital transfer payments (line 33) turned up in the second quarter, increasing $7.5 billion after decreasing $4.9 billion in the first quarter. The second quarter included $54.0 billion of student loan forgiveness. The first quarter included $47.6 billion of student loan forgiveness.
| Line | Level | Change from preceding quarter | ||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | ||||
| Q2 | Q3 | Q4 | Q1 | Q2 | ||
| 1 | Current receipts | 5,100.9 | 65.0 | 78.2 | 98.3 | 74.2 |
| 2 | Current tax receipts | 3,094.3 | 32.2 | 32.3 | 77.7 | 64.4 |
| 3 | Personal current taxes | 2,390.9 | 13.7 | 21.7 | 73.9 | 34.8 |
| 4 | Taxes on production and imports | 172.4 | −3.6 | −2.9 | 7.9 | −4.8 |
| 5 | Taxes on corporate income | 493.4 | 22.5 | 12.9 | −4.9 | 33.5 |
| 6 | Taxes from the rest of the world | 37.6 | −0.4 | 0.6 | 0.8 | 0.9 |
| 7 | Contributions for government social insurance | 1,881.8 | 28.1 | 18.2 | 27.9 | 17.7 |
| 8 | Income receipts on assets | 67.3 | 5.0 | 16.0 | 0.8 | 4.9 |
| 9 | Current transfer receipts | 67.1 | 2.0 | 13.9 | −6.0 | −11.5 |
| 10 | Current surplus of government enterprises | −9.6 | −2.3 | −2.2 | −2.1 | −1.3 |
| 11 | Current expenditures | 6,864.6 | 82.7 | 92.4 | 153.0 | 91.8 |
| 12 | Consumption expenditures | 1,386.4 | 37.0 | 10.4 | 20.4 | 19.0 |
| 13 | National defense | 823.7 | 24.8 | 7.2 | 8.1 | 12.9 |
| 14 | Nondefense | 562.7 | 12.2 | 3.2 | 12.3 | 6.1 |
| 15 | Current transfer payments | 4,287.7 | −28.2 | 24.6 | 98.9 | 45.7 |
| 16 | Government social benefits | 3,276.8 | 29.5 | 17.6 | 106.0 | 42.8 |
| 17 | To persons | 3,243.1 | 28.9 | 17.6 | 105.5 | 42.0 |
| 18 | To the rest of the world | 33.7 | 0.5 | 0.0 | 0.5 | 0.8 |
| 19 | Other current transfer payments | 1,010.9 | −57.6 | 7.1 | −7.3 | 3.0 |
| 20 | Grants-in-aid to state and local governments | 949.1 | −52.3 | 25.8 | −0.4 | 8.1 |
| 21 | To the rest of the world | 61.8 | −5.3 | −18.7 | −6.9 | −5.1 |
| 22 | Interest payments | 1,096.8 | 71.7 | 62.3 | 36.6 | 29.5 |
| 23 | Subsidies | 93.7 | 2.2 | −5.1 | −2.8 | −2.4 |
| 24 | Net federal government saving | −1,763.6 | −17.7 | −14.2 | −54.7 | −17.5 |
| 25 | Social insurance funds | −659.4 | 0.8 | −11.0 | −39.3 | −14.8 |
| 26 | Other | −1,104.3 | −18.5 | −3.2 | −15.4 | −2.8 |
| Addenda: | ||||||
| 27 | Total receipts | 5,133.1 | 63.3 | 78.1 | 96.1 | 74.1 |
| 28 | Current receipts | 5,100.9 | 65.0 | 78.2 | 98.3 | 74.2 |
| 29 | Capital transfer receipts | 32.1 | −1.6 | −0.1 | −2.2 | −0.2 |
| 30 | Total expenditures | 7,091.7 | 33.9 | −81.7 | 137.1 | 105.8 |
| 31 | Current expenditures | 6,864.6 | 82.7 | 92.4 | 153.0 | 91.8 |
| 32 | Gross government investment | 455.8 | 2.2 | 4.8 | −6.4 | 13.0 |
| 33 | Capital transfer payments | 167.3 | −42.0 | −178.3 | −4.9 | 7.5 |
| 34 | Net purchases of nonproduced assets | −1.2 | −3.8 | 3.7 | −0.3 | −1.0 |
| 35 | Less: Consumption of fixed capital | 394.8 | 5.0 | 4.5 | 4.3 | 5.4 |
| 36 | Net lending or net borrowing (−) | −1,958.6 | 29.4 | 159.8 | −40.9 | −31.8 |
U.S. Bureau of Economic Analysis
Net state and local government saving was −$93.5 billion in the second quarter, decreasing $39.7 billion from −$53.8 billion in the first quarter. In the second quarter, current receipts turned down and current expenditures decelerated relative to the first quarter (table 3).
In the second quarter, net borrowing was $202.8 billion, increasing $42.1 billion from $160.7 billion in the first quarter.
- Personal current taxes (line 3) turned up in the second quarter, increasing $20.5 billion after decreasing $2.6 billion, reflecting an upturn in state personal income tax.
- Taxes on production and imports (line 4) accelerated in the second quarter, increasing $21.5 billion after increasing $16.5 billion, reflecting an upturn in sales taxes.
- Taxes on corporate income (line 5) turned down in the second quarter, decreasing $6.4 billion after increasing $3.5 billion.
- Federal grants-in-aid (line 9) turned up in the second quarter, increasing $8.1 billion after decreasing $0.4 billion in the first quarter. An upturn in education grants and an acceleration in Medicaid grants were partially offset by a downturn in income security grants.
- Other current transfer receipts (line 10) turned down in the second quarter, decreasing $45.1 billion after increasing $48.1 billion, reflecting a downturn in local business fines. The downturn in the second quarter followed several first-quarter settlements.
- Consumption expenditures (line 13) decelerated in the second quarter, increasing $23.0 billion after increasing $38.0 billion, reflecting a downturn in spending on nondurable goods, specifically petroleum. In addition, spending on compensation of government employees decelerated.
- Government social benefits (line 14) decelerated in the second quarter, increasing $23.4 billion after increasing $52.5 billion, largely reflecting a deceleration in Medicaid.
| Line | Level | Change from preceding quarter | ||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | ||||
| Q2 | Q3 | Q4 | Q1 | Q2 | ||
| 1 | Current receipts | 3,806.2 | −11.3 | 56.6 | 67.1 | −0.3 |
| 2 | Current tax receipts | 2,576.4 | 41.9 | 27.9 | 17.4 | 35.7 |
| 3 | Personal current taxes | 630.0 | 23.9 | 6.6 | −2.6 | 20.5 |
| 4 | Taxes on production and imports | 1,782.3 | 14.6 | 20.3 | 16.5 | 21.5 |
| 5 | Taxes on corporate income | 164.0 | 3.5 | 1.0 | 3.5 | −6.4 |
| 6 | Contributions for government social insurance | 26.7 | 0.7 | 1.6 | 2.2 | 1.7 |
| 7 | Income receipts on assets | 97.2 | −0.8 | 0.3 | −0.1 | −0.6 |
| 8 | Current transfer receipts | 1,138.2 | −51.0 | 27.0 | 47.8 | −37.1 |
| 9 | Federal grants-in-aid | 949.1 | −52.3 | 25.8 | −0.4 | 8.1 |
| 10 | Other | 189.1 | 1.3 | 1.2 | 48.1 | −45.1 |
| 11 | Current surplus of government enterprises | −32.2 | −2.1 | −0.1 | −0.2 | 0.0 |
| 12 | Current expenditures | 3,899.8 | 11.7 | 2.5 | 82.2 | 39.5 |
| 13 | Consumption expenditures | 2,495.7 | 47.7 | 12.3 | 38.0 | 23.0 |
| 14 | Government social benefits | 1,136.9 | −41.7 | −8.4 | 52.5 | 23.4 |
| 15 | Interest payments | 266.4 | 5.7 | −1.4 | −8.2 | −7.1 |
| 16 | Subsidies | 0.7 | 0.0 | 0.0 | 0.0 | 0.0 |
| 17 | Net state and local government saving | −93.5 | −23.0 | 54.1 | −15.1 | −39.7 |
| 18 | Social insurance funds | 3.8 | 0.5 | 1.4 | 2.2 | 1.5 |
| 19 | Other | −97.4 | −23.3 | 52.6 | −17.2 | −41.4 |
| Addenda: | ||||||
| 20 | Total receipts | 3,908.3 | −7.9 | 54.4 | 68.8 | 1.8 |
| 21 | Current receipts | 3,806.2 | −11.3 | 56.6 | 67.1 | −0.3 |
| 22 | Capital transfer receipts | 102.1 | 3.4 | −2.2 | 1.7 | 2.1 |
| 23 | Total expenditures | 4,111.1 | 32.9 | 30.6 | 91.9 | 43.9 |
| 24 | Current expenditures | 3,899.8 | 11.7 | 2.5 | 82.2 | 39.5 |
| 25 | Gross government investment | 605.1 | 23.8 | 31.1 | 13.7 | 7.1 |
| 26 | Capital transfer payments | ... | ... | ... | ... | ... |
| 27 | Net purchases of nonproduced assets | 15.5 | 0.1 | 0.0 | −0.1 | −0.1 |
| 28 | Less: Consumption of fixed capital | 409.3 | 2.6 | 3.1 | 3.9 | 2.6 |
| 29 | Net lending or net borrowing (−) | −202.8 | −40.8 | 23.9 | −23.2 | −42.1 |
... Data not available
U.S. Bureau of Economic Analysis
