Government Receipts and Expenditures
Second Quarter 2025
Net government saving, the difference between current receipts and current expenditures in the federal government and state and local governments, was
–$2,062.1 billion in the second quarter of 2025, increasing $43.3 billion from –$2,105.4 billion in the first quarter of 2025 (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 $2,331.2 billion in the second quarter, decreasing $62.3 billion from $2,393.5 billion in the first quarter (charts 3 and 4 and table 1).
| Line | Level | Change from preceding quarter | ||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | ||||
| Q2 | Q3 | Q4 | Q1 | Q2 | ||
| 1 | Current receipts | 8,572.6 | 106.9 | 140.6 | 119.0 | 263.8 |
| 2 | Current expenditures | 10,634.7 | 227.2 | 106.2 | 122.9 | 220.4 |
| 3 | Net government saving | −2,062.1 | −120.4 | 34.4 | −3.8 | 43.3 |
| 4 | Federal | −1,873.5 | −148.0 | 21.0 | 13.6 | 47.4 |
| 5 | State and local | −188.6 | 27.7 | 13.3 | −17.5 | −4.0 |
| 6 | Net lending or net borrowing (−) | −2,331.2 | −185.0 | 77.7 | 21.0 | 62.3 |
| 7 | Federal | −2,025.4 | −207.3 | −13.6 | 114.2 | 82.6 |
| 8 | State and local | −305.8 | 22.3 | 91.3 | −93.1 | −20.4 |
U.S. Bureau of Economic Analysis
Net federal government saving was –$1,873.5 billion in the second quarter, increasing $47.4 billion from –$1,920.9 billion in the first quarter (table 2). In the second quarter, current receipts and current expenditures accelerated.
Federal government net borrowing was $2,025.4 billion in the second quarter, decreasing $82.6 billion from $2,108.0 billion in the first quarter.
- Personal current taxes (line 3) decelerated in the second quarter, increasing $41.3 billion after increasing $75.5 billion in the first quarter, reflecting a deceleration in nonwithheld taxes. The deceleration in nonwithheld taxes reflects a deceleration in final 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) accelerated in the second quarter, increasing $172.0 billion after increasing $8.7 billion in the first quarter. Customs duties accelerated, increasing $170.7 billion after increasing $9.8 billion, reflecting enacted tariffs and the pattern of imports.
- Taxes on corporate income (line 5) turned up in the second quarter, increasing $0.5 billion after decreasing $39.4 billion in the first quarter.
- Contributions for government social insurance (line 7) decelerated in the second quarter, increasing $20.3 billion after increasing $36.4 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 supplemental medical insurance premiums paid by persons.
- Income receipts on assets (line 8) decelerated in the second quarter, increasing $0.4 billion after increasing $8.2 billion in the first quarter, reflecting a downturn in Federal Reserve bank dividends.
- Current transfer receipts (line 9) decreased less in the second quarter, decreasing $6.6 billion after decreasing $9.4 billion in the first quarter, reflecting a smaller decrease in fines and settlements from business.
- Consumption expenditures (line 12) turned up, increasing $5.7 billion in the second quarter after decreasing $3.9 billion in the first quarter. National defense consumption expenditures turned up, reflecting an upturn in spending for defense. Nondefense consumption expenditures turned down.
- Government social benefits to persons (line 17) decelerated in the second quarter, increasing $130.5 billion after increasing $132.8 billion in the first quarter. The deceleration in the second quarter reflects a deceleration in payments of health insurance premium tax credits related to the Affordable Care Act, reflecting the pattern of enrollments.
- Grants-in-aid to state and local governments (line 20) turned up in the second quarter, increasing $18.1 billion after decreasing $26.6 billion in the first quarter, reflecting upturns in Medicaid and income security grants.
- “Other current transfer payments” to the rest of the world (line 21) decreased less in the second quarter, decreasing $1.7 billion after decreasing $40.5 billion in the first quarter, reflecting a smaller decrease in aid to the rest of the world.
- Capital transfer payments (line 33) decreased less in the second quarter, decreasing $34.5 billion after decreasing $96.1 billion in the first quarter. Capital transfers to state and local governments decreased less, reflecting a smaller decrease in U.S. Environmental Protection Agency (EPA) investments in clean water and pollution abatement.
| Line | Level | Change from preceding quarter | ||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | ||||
| Q2 | Q3 | Q4 | Q1 | Q2 | ||
| 1 | Current receipts | 5,622.8 | 63.6 | 103.1 | 79.5 | 230.1 |
| 2 | Current tax receipts | 3,462.7 | 42.5 | 61.0 | 44.0 | 216.6 |
| 3 | Personal current taxes | 2,579.6 | 39.6 | 39.4 | 75.5 | 41.3 |
| 4 | Taxes on production and imports | 370.6 | 9.1 | 0.8 | 8.7 | 172.0 |
| 5 | Taxes on corporate income | 469.7 | −4.7 | 18.0 | −39.4 | 0.5 |
| 6 | Taxes from the rest of the world | 42.8 | −1.6 | 2.9 | −0.9 | 2.8 |
| 7 | Contributions for government social insurance | 1,994.3 | 21.4 | 23.4 | 36.4 | 20.3 |
| 8 | Income receipts on assets | 86.8 | 4.6 | 2.3 | 8.2 | 0.4 |
| 9 | Current transfer receipts | 80.7 | −6.6 | 17.0 | −9.4 | −6.6 |
| 10 | Current surplus of government enterprises | −1.7 | 1.7 | −0.8 | 0.5 | −0.7 |
| 11 | Current expenditures | 7,496.3 | 211.7 | 82.0 | 65.9 | 182.7 |
| 12 | Consumption expenditures | 1,487.6 | 34.4 | 29.0 | −3.9 | 5.7 |
| 13 | National defense | 890.8 | 26.7 | 16.3 | −10.9 | 17.3 |
| 14 | Nondefense | 596.8 | 7.7 | 12.6 | 7.1 | −11.6 |
| 15 | Current transfer payments | 4,728.6 | 135.5 | 41.8 | 68.2 | 148.1 |
| 16 | Government social benefits | 3,695.3 | 45.8 | 57.2 | 135.5 | 131.6 |
| 17 | To persons | 3,657.0 | 44.9 | 57.8 | 132.8 | 130.5 |
| 18 | To the rest of the world | 38.3 | 0.9 | −0.6 | 2.7 | 1.1 |
| 19 | Other current transfer payments | 1,033.3 | 89.7 | −15.6 | −67.1 | 16.4 |
| 20 | Grants-in-aid to state and local governments | 973.8 | 32.5 | 2.6 | −26.6 | 18.1 |
| 21 | To the rest of the world | 59.5 | 57.2 | −18.1 | −40.5 | −1.7 |
| 22 | Interest payments | 1,160.9 | 42.6 | 9.4 | −11.4 | 16.7 |
| 23 | Subsidies | 119.2 | −0.9 | 1.9 | 13.0 | 12.2 |
| 24 | Net federal government saving | −1,873.5 | −148.0 | 21.0 | 13.6 | 47.4 |
| 25 | Social insurance funds | −858.0 | −16.1 | −19.9 | −60.8 | −92.4 |
| 26 | Other | −1,015.5 | −131.9 | 40.9 | 74.4 | 139.8 |
| Addenda: | ||||||
| 27 | Total receipts | 5,660.2 | 79.7 | 94.8 | 81.5 | 227.5 |
| 28 | Current receipts | 5,622.8 | 63.6 | 103.1 | 79.5 | 230.1 |
| 29 | Capital transfer receipts | 37.4 | 16.0 | −8.3 | 2.0 | −2.6 |
| 30 | Total expenditures | 7,685.6 | 286.9 | 108.4 | −32.7 | 144.9 |
| 31 | Current expenditures | 7,496.3 | 211.7 | 82.0 | 65.9 | 182.7 |
| 32 | Gross government investment | 468.8 | 15.9 | 3.2 | 3.7 | 0.9 |
| 33 | Capital transfer payments | 133.3 | 64.3 | 29.3 | −96.1 | −34.5 |
| 34 | Net purchases of nonproduced assets | 0.0 | 0.9 | 0.3 | −0.2 | 0.2 |
| 35 | Less: Consumption of fixed capital | 412.8 | 5.8 | 6.4 | 6.0 | 4.5 |
| 36 | Net lending or net borrowing (−) | −2,025.4 | −207.3 | −13.6 | 114.2 | 82.6 |
U.S. Bureau of Economic Analysis
Net state and local government saving was –$188.6 billion in the second quarter, decreasing $4.0 billion from –$184.6 billion in the first quarter. In the second quarter, current receipts and current expenditures accelerated (table 3).
Net borrowing was $305.8 billion in the second quarter, increasing $20.4 billion from $285.4 billion in the first quarter.
- Personal current taxes (line 3) accelerated in the second quarter, increasing $13.3 billion after increasing $5.5 billion in the first quarter, reflecting an acceleration in state personal income taxes.
- Taxes on corporate income (line 5) turned down in the second quarter, decreasing $1.4 billion after increasing $10.2 billion in the first quarter.
- Federal grants-in-aid (line 9) turned up in the second quarter, increasing $18.1 billion after decreasing $26.6 billion in the first quarter, reflecting upturns in Medicaid and income security grants.
- “Other current transfer receipts” (line 10) accelerated in the second quarter, increasing $7.1 billion after increasing $3.7 billion in the first quarter. Current transfer receipts from businesses accelerated in the second quarter, reflecting an acceleration in fines and settlements paid by businesses to states.
- Consumption expenditures (line 13) decelerated in the second quarter, increasing $21.3 billion after increasing $37.4 billion in the first quarter, reflecting a downturn in spending on nondurable goods, specifically petroleum.
- Government social benefits (line 14) turned up in the second quarter, increasing $36.5 billion after decreasing $6.5 billion in the first quarter, reflecting an upturn in Medicaid spending.
- Capital transfer receipts (line 22) decreased less in the second quarter, decreasing $7.9 billion after decreasing $82.8 billion in the first quarter, reflecting a smaller decrease in EPA investments in clean water and pollution abatement.
| Line | Level | Change from preceding quarter | ||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | ||||
| Q2 | Q3 | Q4 | Q1 | Q2 | ||
| 1 | Current receipts | 3,923.6 | 75.7 | 40.1 | 12.9 | 51.8 |
| 2 | Current tax receipts | 2,644.5 | 35.0 | 39.8 | 33.5 | 28.6 |
| 3 | Personal current taxes | 629.0 | 21.9 | 14.5 | 5.5 | 13.3 |
| 4 | Taxes on production and imports | 1,832.5 | 13.6 | 21.3 | 17.7 | 16.7 |
| 5 | Taxes on corporate income | 183.0 | −0.5 | 4.1 | 10.2 | −1.4 |
| 6 | Contributions for government social insurance | 29.0 | 1.0 | 0.7 | 0.3 | 0.4 |
| 7 | Income receipts on assets | 128.2 | 0.2 | 1.3 | 2.7 | 1.0 |
| 8 | Current transfer receipts | 1,172.7 | 39.9 | −0.5 | −22.9 | 25.2 |
| 9 | Federal grants-in-aid | 973.8 | 32.5 | 2.6 | −26.6 | 18.1 |
| 10 | Other | 198.9 | 7.4 | −3.1 | 3.7 | 7.1 |
| 11 | Current surplus of government enterprises | −50.8 | −0.3 | −1.3 | −0.6 | −3.5 |
| 12 | Current expenditures | 4,112.1 | 48.1 | 26.8 | 30.2 | 55.8 |
| 13 | Consumption expenditures | 2,644.3 | 27.9 | 20.6 | 37.4 | 21.3 |
| 14 | Government social benefits | 1,195.0 | 23.0 | 8.1 | −6.5 | 36.5 |
| 15 | Interest payments | 272.1 | −2.9 | −1.9 | −0.6 | −2.0 |
| 16 | Subsidies | 0.7 | 0.0 | 0.0 | 0.0 | 0.0 |
| 17 | Net state and local government saving | −188.6 | 27.7 | 13.3 | −17.5 | −4.0 |
| 18 | Social insurance funds | 2.9 | 0.6 | 0.0 | −0.4 | −0.2 |
| 19 | Other | −191.4 | 27.0 | 13.3 | −17.0 | −3.7 |
| Addenda: | ||||||
| 20 | Total receipts | 4,036.9 | 83.1 | 131.2 | −70.0 | 43.8 |
| 21 | Current receipts | 3,923.6 | 75.7 | 40.1 | 12.9 | 51.8 |
| 22 | Capital transfer receipts | 113.4 | 7.3 | 91.1 | −82.8 | −7.9 |
| 23 | Total expenditures | 4,342.7 | 60.8 | 39.8 | 23.3 | 64.1 |
| 24 | Current expenditures | 4,112.1 | 48.1 | 26.8 | 30.2 | 55.8 |
| 25 | Gross government investment | 636.2 | 13.5 | 11.1 | 7.7 | 13.4 |
| 26 | Capital transfer payments | ... | ... | ... | ... | ... |
| 27 | Net purchases of nonproduced assets | 22.3 | 0.4 | 0.4 | 0.4 | 0.4 |
| 28 | Less: Consumption of fixed capital | 427.9 | 5.2 | 4.3 | 5.1 | 5.5 |
| 29 | Net lending or net borrowing (−) | −305.8 | 22.3 | 91.3 | −93.1 | −20.4 |
... Data not available
U.S. Bureau of Economic Analysis
