Government Receipts and Expenditures
First Quarter of 2025
Net government saving, the difference between current receipts and current expenditures in the federal government and state and local governments, was −$1,888.1 billion in the first quarter of 2025, increasing $25.0 billion from −$1,913.1 billion in the fourth 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 $2,194.6 billion in the first quarter, decreasing $43.8 billion from $2,238.4 billion in the fourth quarter (charts 3 and 4 and table 1).
| Line | Level | Change from preceding quarter | ||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | ||||
| Q1 | Q2 | Q3 | Q4 | Q1 | ||
| 1 | Current receipts | 8,341.0 | 37.9 | 94.8 | 159.9 | 156.2 |
| 2 | Current expenditures | 10,229.1 | 123.1 | 195.4 | 87.2 | 131.3 |
| 3 | Net government saving | −1,888.1 | −85.2 | −100.6 | 72.6 | 25.0 |
| 4 | Federal | −1,811.0 | −45.5 | −137.3 | 61.8 | 56.1 |
| 5 | State and local | −77.1 | −39.7 | 36.8 | 10.8 | −31.2 |
| 6 | Net lending or net borrowing (–) | −2,194.6 | −101.8 | −132.7 | 83.6 | 43.8 |
| 7 | Federal | −2,009.8 | −59.7 | −168.3 | −6.2 | 151.2 |
| 8 | State and local | −184.8 | −42.1 | 35.7 | 89.7 | −107.4 |
U.S. Bureau of Economic Analysis
Net federal government saving was −$1,811.0 billion in the first quarter, increasing $56.1 billion from −$1,867.1 billion in the fourth quarter (table 2). In the first quarter, current receipts and current expenditures decelerated.
Federal government net borrowing was $2,009.8 billion in the first quarter, decreasing $151.2 billion from $2,161.0 billion in the fourth quarter.
- Personal current taxes (line 3) accelerated in the first quarter, increasing $67.6 billion after increasing $48.5 billion in the fourth quarter, reflecting an acceleration in nonwithheld taxes. The acceleration in nonwithheld taxes reflects an acceleration in final settlements, partially offset by an upturn in refunds, which are a subtraction in the calculation of nonwithheld taxes. 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) accelerated in the first quarter, increasing $8.8 billion after increasing $1.1 billion in the fourth quarter. Customs duties accelerated, increasing $9.8 billion after increasing $1.3 billion, reflecting the volume of imports.
- Taxes on corporate income (line 5) decelerated in the first quarter, increasing $7.7 billion after increasing $19.0 billion in the fourth quarter.
- Contributions for government social insurance (line 7) accelerated in the first quarter, increasing $31.4 billion after increasing $26.8 billion in the fourth quarter, reflecting the pattern of wages. Contributions for Supplementary Medical Insurance premiums paid by persons accelerated.
- Income receipts on assets (line 8) turned up in the first quarter, increasing $3.7 billion after decreasing $1.2 billion, reflecting an upturn in Federal Reserve bank dividends.
- Current transfer receipts (line 9) turned down in the first quarter, decreasing $10.2 billion after increasing $24.6 billion in the fourth quarter, reflecting a downturn in fines and settlements paid by domestic businesses.
- Consumption expenditures (line 12) turned down, decreasing $3.7 billion in the first quarter after increasing $24.2 billion in the fourth quarter. National defense consumption expenditures turned down, reflecting a downturn in spending for defense. Nondefense consumption expenditures decelerated.
- Government social benefits to persons (line 17) accelerated in the first quarter, increasing $123.8 billion after increasing $44.8 billion in the fourth quarter. The acceleration in the first quarter was driven by an acceleration in Social Security benefits, reflecting a 2.5 percent cost of living adjustment in January. In addition, retroactive payments related to the Social Security Fairness Act were disbursed in February and March. 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.
- Grants-in-aid to state and local governments (line 20) decreased more in the first quarter, decreasing $27.7 billion after decreasing $0.5 billion in the fourth quarter, reflecting downturns in Medicaid grants, Federal Emergency Management Agency (FEMA) disaster relief grants, and grants related to the Education Stabilization Fund.
- “Other current transfer payments” to the rest of the world (line 21) decreased more in the first quarter, decreasing $40.4 billion after decreasing $19.8 billion in the fourth quarter, reflecting a decrease in aid to the rest of the world.
- Subsidies (line 23) accelerated in the first quarter, increasing $10.6 billion after increasing $1.4 billion in the fourth quarter. The acceleration reflects an acceleration in agricultural subsidies, reflecting the economic assistance payments to farmers authorized by the American Relief Act of 2025.
- Capital transfer payments (line 33) turned down in the first quarter, decreasing $96.0 billion after increasing $67.2 billion in the fourth quarter. Capital transfers to state and local governments turned down. The fourth quarter included funding for U.S Environmental Protection Agency (EPA) investments in clean water and pollution abatement.
| Line | Level | Change from preceding quarter | ||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | ||||
| Q1 | Q2 | Q3 | Q4 | Q1 | ||
| 1 | Current receipts | 5,354.0 | 46.3 | 50.2 | 119.5 | 111.3 |
| 2 | Current tax receipts | 3,263.0 | 48.9 | 32.2 | 68.7 | 83.3 |
| 3 | Personal current taxes | 2,514.8 | 19.3 | 23.3 | 48.5 | 67.6 |
| 4 | Taxes on production and imports | 191.3 | −4.8 | 9.0 | 1.1 | 8.8 |
| 5 | Taxes on corporate income | 519.8 | 33.5 | −0.3 | 19.0 | 7.7 |
| 6 | Taxes from the rest of the world | 37.1 | 0.9 | 0.2 | 0.2 | −0.9 |
| 7 | Contributions for government social insurance | 1,934.6 | 5.3 | 7.0 | 26.8 | 31.4 |
| 8 | Income receipts on assets | 69.2 | 4.9 | −0.6 | −1.2 | 3.7 |
| 9 | Current transfer receipts | 91.8 | −11.5 | 10.3 | 24.6 | −10.2 |
| 10 | Current surplus of government enterprises | −4.5 | −1.3 | 1.3 | 0.6 | 3.2 |
| 11 | Current expenditures | 7,165.0 | 91.8 | 187.5 | 57.8 | 55.1 |
| 12 | Consumption expenditures | 1,443.2 | 19.0 | 36.3 | 24.2 | −3.7 |
| 13 | National defense | 855.5 | 12.9 | 27.5 | 15.3 | −11.0 |
| 14 | Nondefense | 587.7 | 6.1 | 8.8 | 8.9 | 7.3 |
| 15 | Current transfer payments | 4,503.4 | 45.7 | 132.7 | 24.6 | 58.4 |
| 16 | Government social benefits | 3,489.5 | 42.8 | 41.2 | 45.0 | 126.5 |
| 17 | To persons | 3,452.4 | 42.0 | 40.7 | 44.8 | 123.8 |
| 18 | To the rest of the world | 37.1 | 0.8 | 0.6 | 0.1 | 2.7 |
| 19 | Other current transfer payments | 1,013.9 | 3.0 | 91.5 | −20.4 | −68.1 |
| 20 | Grants-in-aid to state and local governments | 953.4 | 8.1 | 32.5 | −0.5 | −27.7 |
| 21 | To the rest of the world | 60.5 | −5.1 | 58.9 | −19.8 | −40.4 |
| 22 | Interest payments | 1,114.3 | 29.5 | 20.2 | 7.4 | −10.1 |
| 23 | Subsidies | 104.1 | −2.4 | −1.6 | 1.4 | 10.6 |
| 24 | Net federal government saving | −1,811.0 | −45.5 | −137.3 | 61.8 | 56.1 |
| 25 | Social insurance funds | −781.8 | −27.2 | −30.1 | −15.7 | −64.2 |
| 26 | Other | −1,029.2 | −18.3 | −107.3 | 77.6 | 120.3 |
| Addenda: | ||||||
| 27 | Total receipts | 5,385.3 | 46.2 | 48.1 | 120.0 | 112.0 |
| 28 | Current receipts | 5,354.0 | 46.3 | 50.2 | 119.5 | 111.3 |
| 29 | Capital transfer receipts | 31.3 | −0.2 | −2.0 | 0.5 | 0.7 |
| 30 | Total expenditures | 7,395.0 | 105.8 | 216.5 | 126.1 | −39.3 |
| 31 | Current expenditures | 7,165.0 | 91.8 | 187.5 | 57.8 | 55.1 |
| 32 | Gross government investment | 485.2 | 13.0 | 15.0 | 7.0 | 7.4 |
| 33 | Capital transfer payments | 157.4 | 7.5 | 18.9 | 67.2 | −96.0 |
| 34 | Net purchases of nonproduced assets | −0.2 | −1.0 | 0.9 | 0.3 | −0.2 |
| 35 | Less: Consumption of fixed capital | 412.4 | 5.4 | 5.8 | 6.2 | 5.6 |
| 36 | Net lending or net borrowing (-) | −2,009.8 | −59.7 | −168.3 | −6.2 | 151.2 |
U.S. Bureau of Economic Analysis
Net state and local government saving was −$77.1 billion in the first quarter, decreasing $31.2 billion from −$45.9 billion in the fourth quarter. In the first quarter, current receipts decelerated, and current expenditures accelerated (table 3).
Net borrowing was $184.8 billion in the first quarter, increasing $107.4 billion from $77.4 billion in the fourth quarter.
- Personal current taxes (line 3) decelerated in the first quarter, increasing $7.1 billion after increasing $15.0 billion in the fourth quarter, reflecting a deceleration in state personal income taxes.
- Taxes on corporate income (line 5) accelerated in the first quarter, increasing $10.5 billion after increasing $1.6 billion in the fourth quarter.
- Federal grants-in-aid (line 9) decreased more in the first quarter, decreasing $27.7 billion after decreasing $0.5 billion in the fourth quarter, reflecting downturns in Medicaid grants, FEMA disaster relief grants, and grants related to the Education Stabilization Fund.
- “Other current transfer receipts” (line 10) turned up in the first quarter, increasing $3.3 billion after decreasing $3.5 billion in the fourth quarter. Current transfer receipts from business turned up in the first quarter, reflecting an upturn in fines and settlements paid by businesses to states.
- Consumption expenditures (line 13) accelerated in the first quarter, increasing $37.9 billion after increasing $24.9 billion in the fourth quarter, reflecting an upturn in spending on nondurable goods. In addition, spending on services accelerated.
- Government social benefits (line 14) accelerated in the first quarter, increasing $13.7 billion after increasing $8.5 billion in the fourth quarter, reflecting a smaller decrease in disaster-related benefits.
- Capital transfer receipts (line 22) turned down in the first quarter, decreasing $82.7 billion after increasing $89.7 billion in the fourth quarter, reflecting a downturn in capital grants for EPA investments in clean water and pollution abatement.
| Line | Level | Change from preceding quarter | ||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | ||||
| Q1 | Q2 | Q3 | Q4 | Q1 | ||
| 1 | Current receipts | 3,940.3 | −0.3 | 77.1 | 39.8 | 17.2 |
| 2 | Current tax receipts | 2,698.1 | 35.7 | 36.2 | 43.7 | 41.8 |
| 3 | Personal current taxes | 677.6 | 20.5 | 25.5 | 15.0 | 7.1 |
| 4 | Taxes on production and imports | 1,845.9 | 21.5 | 12.2 | 27.2 | 24.2 |
| 5 | Taxes on corporate income | 174.7 | −6.4 | −1.4 | 1.6 | 10.5 |
| 6 | Contributions for government social insurance | 27.0 | 1.7 | 0.8 | 0.1 | −0.6 |
| 7 | Income receipts on assets | 98.0 | −0.6 | −0.2 | 0.1 | 0.9 |
| 8 | Current transfer receipts | 1,149.7 | −37.1 | 39.9 | −4.0 | −24.4 |
| 9 | Federal grants-in-aid | 953.4 | 8.1 | 32.5 | −0.5 | −27.7 |
| 10 | Other | 196.3 | −45.1 | 7.4 | −3.5 | 3.3 |
| 11 | Current surplus of government enterprises | −32.5 | 0.0 | 0.2 | 0.0 | −0.5 |
| 12 | Current expenditures | 4,017.5 | 39.5 | 40.3 | 29.0 | 48.4 |
| 13 | Consumption expenditures | 2,587.8 | 23.0 | 29.3 | 24.9 | 37.9 |
| 14 | Government social benefits | 1,176.2 | 23.4 | 17.1 | 8.5 | 13.7 |
| 15 | Interest payments | 252.7 | −7.1 | −6.0 | −4.5 | −3.2 |
| 16 | Subsidies | 0.7 | 0.0 | 0.0 | 0.0 | 0.0 |
| 17 | Net state and local government saving | −77.1 | −39.7 | 36.8 | 10.8 | −31.2 |
| 18 | Social insurance funds | 3.2 | 1.5 | 0.7 | −0.3 | −1.0 |
| 19 | Other | −80.3 | −41.4 | 36.2 | 11.1 | −30.2 |
| Addenda: | ||||||
| 20 | Total receipts | 4,058.5 | 1.8 | 86.1 | 129.6 | −65.5 |
| 21 | Current receipts | 3,940.3 | −0.3 | 77.1 | 39.8 | 17.2 |
| 22 | Capital transfer receipts | 118.1 | 2.1 | 9.0 | 89.7 | −82.7 |
| 23 | Total expenditures | 4,243.3 | 43.9 | 50.5 | 39.8 | 41.9 |
| 24 | Current expenditures | 4,017.5 | 39.5 | 40.3 | 29.0 | 48.4 |
| 25 | Gross government investment | 633.7 | 7.1 | 11.5 | 8.5 | 8.6 |
| 26 | Capital transfer payments | ... | ... | ... | ... | ... |
| 27 | Net purchases of nonproduced assets | 15.2 | −0.1 | −0.1 | −0.1 | −0.1 |
| 28 | Less: Consumption of fixed capital | 423.1 | 2.6 | 5.2 | 3.6 | 5.0 |
| 29 | Net lending or net borrowing (-) | −184.8 | −42.1 | 35.7 | 89.7 | −107.4 |
... Data not available
U.S. Bureau of Economic Analysis
