<p> 9</p><p>INTRODUCTION: Federal Fiscal Operations Budget authority usually takes the form of Offsetting receipts in receipt accounts cannot be used appropriations that allow obligations to be incurred and without appropriation. They are subdivided into three payments to be made. Reappropriations are Congressional categories: (1) proprietary receipts, or collections from the actions that extend the availability of unobligated amounts public, offset against outlays by agency and by function; (2) that have expired or would otherwise expire. These are intragovernmental transactions, or payments into receipt counted as new budget authority in the fiscal year of the accounts from governmental appropriation or fund accounts. legislation in which the reappropriation act is included, They finance operations within and between Government regardless of when the amounts were originally agencies and are credited with collections from other appropriated or when they would otherwise lapse. Government accounts; and (3) offsetting governmental Obligations generally are liquidated by the issuance of receipts that include foreign cash contributions. checks or the disbursement of cash—outlays. Obligations Intrabudgetary transactions are subdivided into three may also be liquidated (and outlays recorded) by the accrual categories: (1) interfund transactions—payments are from of interest on public issues of Treasury debt securities one fund group (either Federal funds or trust funds) to a (including an increase in redemption value of bonds receipt account in the other fund group; (2) Federal outstanding); or by the issuance of bonds, debentures, notes, intrafund transactions—payments and receipts both occur monetary credits, or electronic payments. within the Federal fund group; and (3) trust intrafund Refunds of collections generally are treated as transactions—payments and receipts both occur within the reductions of collections, whereas payments for earned- trust fund group. income tax credits in excess of tax liabilities are treated as Offsetting receipts are generally deducted from budget outlays. Outlays during a fiscal year may be for payment of authority and outlays by function, subfunction, or agency. obligations incurred in prior years or in the same year. There are four types of receipts, however, that are deducted Outlays, therefore, flow in part from unexpended balances from budget totals as undistributed offsetting receipts. They of prior year budget authority and from budget authority are: (1) agencies’ payments (including payments by off- provided for the year in which the money is spent. Total budget Federal entities) as employers into employees’ outlays include both budget and off-budget outlays and are retirement funds; (2) interest received by trust funds; (3) stated net of offsetting collections. rents and royalties on the Outer Continental Shelf lands; and Receipts are reported in the tables as either budget (4) other interest (i.e., that collected on Outer Continental receipts or offsetting collections. They are collections from Shelf money in deposit funds when such money is the public, excluding receipts offset against outlays. These, transferred into the budget). also called governmental receipts, consist mainly of tax The Government has used the unified budget concept set receipts (including social insurance taxes), receipts from forth in the “Report of the President’s Commission on court fines, certain licenses, and deposits of earnings by the Budget Concepts” as a foundation for its budgetary analysis Federal Reserve system. Refunds of receipts are treated as and presentation since 1969. The concept calls for the deductions from gross receipts. Total Government receipts budget to include all of the Government’s fiscal transactions are compared with total outlays in calculating the budget with the public. Since 1971, however, various laws have surplus or deficit. been enacted removing several Federal entities from (or Offsetting collections from other Government accounts creating them outside of) the budget. Other laws have or the public are of a business-type or market-oriented moved certain off-budget Federal entities onto the budget. nature. They are classified as either collections credited to Under current law, the off-budget Federal entities consist of appropriations or fund accounts, or offsetting receipts (i.e., the two Social Security trust funds, Federal Old-Age and amounts deposited in receipt accounts). The former Survivors Insurance and the Federal Disability Insurance normally can be used without an appropriation act by Trust Fund, and the Postal Service. Congress. These occur in two instances: (1) when Although an off-budget Federal entity’s receipts, authorized by law, amounts collected for materials or outlays, and surplus or deficit ordinarily are not subject to services are treated as reimbursements to appropriations. targets set by the Congressional resolution, the Balanced For accounting purposes, earned reimbursements are also Budget and Emergency Deficit Control Act of 1985 known as revenues. These offsetting collections are netted [commonly known as the Gramm-Rudman-Hollings Act as against gross outlays in determining net outlays from such amended by the Budget Enforcement Act of 1990 (2 United appropriations; and (2) in the three types of revolving funds States Code 900-922)] included off-budget surplus or deficit (public enterprise, intragovernmental, and trust); offsetting in calculating deficit targets under that act and in calculating collections are netted against spending, and outlays are excess deficit. Partly for this reason, attention has focused reported as the net amount.</p><p>September 2015 10 FEDERAL FISCAL OPERATIONS on both on- and off-budget receipts, outlays and deficit of  Table FFO-4 summarizes on- and off-budget the Government. receipts by source and outlays by function as reported to Tables FFO-1, FFO-2, and FFO-3 are published each major fund group classification for the current fiscal quarterly and cover 5 years of data, estimates for 2 years, year to date and prior fiscal year to date. detail for 13 months, and fiscal year-to-date data. They  Table FFO-5 summarizes internal revenue receipts provide a summary of data relating to Federal fiscal by states and by type of tax. Amounts reported are operations reported by Federal entities and disbursing collections made in a fiscal year. They span several tax officers, and daily reports from the FRBs. They also detail liability years because they consist of prepayments accounting transactions affecting receipts and outlays of the (estimated tax payments and taxes withheld by employers Government and off-budget Federal entities and their related for individual income and Social Security taxes), payments effect on assets and liabilities of the Government. Data are made with tax returns and subsequent payments made after derived from the “Monthly Treasury Statement of Receipts tax returns are due or are filed (that is, payments with and Outlays of the United States Government.” delinquent returns or on delinquent accounts).  Table FFO-1 summarizes the amount of total Amounts are reported based on the primary filing receipts, outlays, and surplus or deficit, as well as address provided by each taxpayer or reporting entity. For transactions in Federal securities, monetary assets, and multistate corporations, the address may reflect only the balances in Treasury operating cash. district where such a corporation reported its taxes from a principal office rather than other districts where income was  Table FFO-2 includes on- and off-budget receipts earned or where individual income and Social Security taxes by source. Amounts represent income taxes, social were withheld. In addition, an individual may reside in one insurance taxes, net contributions for other insurance and district and work in another. retirement, excise taxes, estate and gift taxes, customs duties, and net miscellaneous receipts.  Table FFO-6 includes customs collection of duties,  Table FFO-3 details on- and off-budget outlays by taxes, and fees by districts and ports. agency.  Budget Results and Financing of the U.S. Government and Third-Quarter Receipts by Source</p><p>[Source: Office of Tax Analysis, Office of Tax Policy] Third-Quarter Receipts the prior year third quarter. The $5.9 billion change is The following capsule analysis of budget comprised of an increase of $6.5 billion in estimated and receipts, by source, for the third quarter of fiscal final payments, and an increase of $0.6 billion in corporate year 2015 supplements fiscal data reported in the refunds. June issue of the “Treasury Bulletin.” At the time Employment taxes and contributions—Employment of that issue’s release, not enough data were taxes and contributions receipts for the third quarter of fiscal available to analyze adequately collections for the year 2015 were $281.2 billion, an increase of $14.4 billion quarter. over the comparable prior year quarter. Receipts to the Individual income taxes—Individual income tax Federal Old-Age and Survivors Insurance, Federal receipts, net of refunds, were $526.1 billion for the third Disability Insurance, and Federal Hospital Insurance trust quarter of fiscal year 2015. This is an increase of $65.2 funds changed by $9.1 billion, $1.5 billion, and $3.6 billion billion over the comparable prior year quarter. Withheld respectively. There was a $1.0 billion accounting adjustment receipts increased by $13.7 billion and non-withheld for prior years’ employment tax liabilities made in the third receipts increased by $50.7 billion during this period. quarter of fiscal year 2015, while there was a -$2.1 billion Refunds decreased by $0.8 billion over the comparable adjustment in the third quarter of fiscal year 2014. fiscal year 2014 quarter. There was a decrease of $3.1 Unemployment insurance—Unemployment insurance billion in accounting adjustments between individual receipts, net of refunds, for the third quarter of fiscal year income tax receipts and the Social Security and Medicare 2015 were $25.1 billion, a decrease of $1.4 billion over the trust funds over the comparable quarter in fiscal year 2014. comparable quarter of fiscal year 2014. Net State taxes Corporate income taxes—Net corporate income tax deposited in the U.S. Treasury decreased by $1.6 billion to receipts were $123.3 billion for the third quarter of fiscal $21.8 billion. Net Federal Unemployment Tax Act taxes year 2015. This is an increase of $5.9 billion compared to increased by $0.1 billion to $3.4 billion.</p><p>September 2015 FEDERAL FISCAL OPERATIONS 11</p><p>Budget Results and Financing of the U.S. Government and Third-Quarter Receipts by Source, continued Contributions for other insurance and retirement— These receipts represent an increase of $1.0 billion over the Contributions for other retirement were $0.9 billion for the same quarter in fiscal year 2014. third quarter of fiscal year 2015. This was a negligible Customs duties—Customs duties net of refunds were change from the comparable quarter of fiscal year 2014. $8.9 billion for the third quarter of fiscal year 2015. This is Excise taxes—Net excise tax receipts for the third an increase of $1.0 billion over the comparable prior year quarter of fiscal year 2015 were $20.7 billion, an increase of quarter. $1.0 billion over the comparable prior year quarter. Total Miscellaneous receipts—Net miscellaneous receipts excise tax refunds for the quarter were $1.9 billion, a for the third quarter of fiscal year 2015 were $34.8 billion, decrease of $0.5 billion over the comparable prior year an increase of $2.2 billion over the comparable prior year quarter. quarter. Estate and gift taxes—Net estate and gift tax receipts were $6.2 billion for the third quarter of fiscal year 2015. </p><p>Total On- and Off-Budget Results and Financing of the U.S. Government</p><p>[In millions of dollars. Source: “Monthly Treasury Statement of Receipts and Outlays of the United States Government”]</p><p>Third quarter 2015 Fiscal year 2015 April - June year to date</p><p>Total on- and off-budget results: Total receipts...... 1,027,120 2,446,919 On-budget receipts...... 810,341 1,858,260 Off-budget receipts...... 216,779 588,659 Total outlays...... 901,020 2,760,301 On-budget outlays...... 736,618 2,230,433 Off-budget outlays...... 164,402 529,867 Total surplus or deficit (-)...... 126,100 -313,381 On-budget surplus or deficit (-)...... 73,724 -372,173 Off-budget surplus or deficit (-)...... 52,377 58,792 Means of financing: Borrowing from the public...... -16,300 290,969 Reduction of operating cash...... -154,255 -96,038 Other means...... 44,455 118,448 Total on- and off-budget financing...... -126,100 313,380</p><p>Third-Quarter Net Budget Receipts by Source, Fiscal Year 2015</p><p>[In billions of dollars. Source: “Monthly Treasury Statement of Receipts and Outlays of the United States Government”]</p><p>Source April May June</p><p>Individual income taxes...... 288.2 85.0 152.8 Corporate income taxes...... 43.2 7.3 72.8 Employment and general retirement...... 106.7 79.0 95.5 Unemployment insurance...... 9.5 15.2 0.4 Contributions for other insurance and retirement...... 0.3 0.3 0.3 Excise taxes...... 6.2 7.4 7.1 Estate and gift taxes...... 3.2 1.7 1.3 Customs duties...... 3.4 2.5 2.9 Miscellaneous receipts...... 11.0 13.9 9.9 Total budget receipts...... 471.8 212.4 342.9</p><p>September 2015 12 FEDERAL FISCAL OPERATIONS</p><p>Note.—Detail may not add to totals due to independent rounding.</p><p>September 2015</p>