Section 9 Federal Government Finances and Employment This section presents statistics relating to and Emergency Deficit Control Act of the financial structure and the civilian 1985 (P.L.99-177) repealed the off-budget employment of the federal government. status of these entities and placed social The fiscal data cover taxes, other security (federal old-age and survivors receipts, outlays, and debt. The principal insurance and the federal disability insur- sources of fiscal data are the Budget of ance trust funds) off-budget. Though the United States Government and related social security is now off-budget and, by documents, published annually by the law, excluded from coverage of the con- Office of Management and Budget (OMB), gressional budget resolutions, it contin- and the Department of the Treasury’s ues to be a federal program. United States Government Annual Report and its Appendix. Detailed data on tax Receipts arising from the government’s returns and collections are published sovereign powers are reported as govern- annually by the Internal Revenue Service. mental receipts; all other receipts; i.e., The personnel data relate to staffing and from business-type or market-oriented payrolls. They are published by the Office activities, are offset against outlays. Out- of Personnel Management and the Bureau lays are reported on a checks-issued (net) of Labor Statistics. The primary source for basis (i.e., outlays are recorded at the data on public lands is Public Land Statis- time the checks to pay bills are issued). tics, published annually by the Bureau of Land Management, Department of the Debt concept—For most of U.S. history, Interior. Data on federally owned land and the total debt consisted of debt borrowed real property are collected by the General by the Treasury (i.e., public debt). The Services Administration and presented in present debt series, includes both public its annual Inventory Report on Real Prop- debt and agency debt. The gross federal erty Owned by the United States Through- debt includes money borrowed by the out the World. Treasury and by various federal agencies; it is the broadest generally used measure Budget concept—Under the unified of the federal debt. Total public debt is budget concept, all federal monies are covered by a statutory debt limitation and included in one comprehensive budget. includes only borrowing by the Treasury. These monies comprise both federal funds and trust funds. Federal funds are Treasury receipts and outlays—All derived mainly from taxes and borrowing receipts of the government, with a few and are not restricted by law to any spe- exceptions, are deposited to the credit of cific government purpose. Trust funds, the U.S. Treasury regardless of ultimate such as the Unemployment Trust Fund, disposition. Under the Constitution, no collect certain taxes and other receipts for money may be withdrawn from the Trea- use in carrying out specific purposes or sury unless appropriated by the Congress. programs in accordance with the terms of the trust agreement or statute. Fund bal- The day-to-day cash operations of the fed- ances include both cash balances with eral government clearing through the Treasury and investments in U.S. securi- accounts of the U.S. Treasury are reported ties. Part of the balance is obligated, part in the Daily Treasury Statement. Exten- unobligated. Prior to 1985, the budget sive detail on the public debt is published totals, under provisions of law, excluded in the Monthly Statement of the Public some federal activities—including the Debt of the United States. Federal Financing Bank, the Postal Service, the Synthetic Fuels Corporation, and the Budget receipts such as taxes, customs lending activities of the Rural Electrifica- duties, and miscellaneous receipts, which tion Administration. The Balanced Budget are collected by government agencies, Federal Government Finances and Employment 319 U.S. Census Bureau, Statistical Abstract of the United States: 2003 and outlays represented by checks issued positions at the end of the report month and cash payments made by disbursing shown and who are paid for personal officers as well as government agencies services rendered for the federal govern- are reported in the Daily Treasury State- ment, regardless of the nature of appoint- ment of Receipts and Outlays of the ment or method of payment. Federal pay- United States Government and in the Trea- rolls include all payments for personal sury’s United States Government Annual services rendered during the report Report and its Appendix. These deposits month and payments for accumulated in and payments from accounts main- annual leave of employees who separate tained by government agencies are on the from the service. Since most federal same basis as the unified budget. employees are paid on a biweekly basis, The quarterly Treasury Bulletin contains the calendar month earnings are partially data on fiscal operations and related Trea- estimated on the basis of the number of sury activities, including financial state- work days in each month where payroll ments of government corporations and periods overlap. other business-type activities. Federal employment and payroll figures Income tax returns and tax are published by the Office of Personnel collections—Tax data are compiled Management in its Federal Civilian Work- by the Internal Revenue Service of the force Statistics—Employment and Trends. Treasury Department. The annual Internal It also publishes biennial employment Revenue Service Data Book gives a data for minority groups, data on occupa- detailed account of tax collections by kind tions of white- and blue-collar workers, of tax and by regions, districts, and and data on employment by geographic states. The agency’s annual Statistics of area; reports on salary and wage distribu- Income reports present detailed data from tion of federal employees are published individual income tax returns and corpo- annually. General schedule is primarily ration income tax returns. The quarterly white-collar; wage system primarily blue- Statistics of Income Bulletin has, in gen- collar. Data on federal employment are eral, replaced the supplemental Statistics also issued by the Bureau of Labor Statis- of Income publications which presented tics in its Monthly Labor Review and in data on such diverse subjects as tax- Employment and Earnings and by the U.S. exempt organizations, unincorporated Census Bureau in its annual Public businesses, fiduciary income tax and Employment. estate tax returns, sales of capital assets by individuals, international income and Public lands—The data on applications, taxes reported by corporations and indi- entries, selections, patents, and certifica- viduals, and estate tax wealth. tions refer to transactions that involve the disposal, under the public land laws Employment and payrolls—The Office (including the homestead laws), of federal of Personnel Management collects public lands to nonfederal owners. In gen- employment and payroll data from all eral, original entries and selections are departments and agencies of the federal applications to secure title to public lands government, except the Central Intelli- thar have been accepted as properly filed gence Agency, the National Security (i.e., allowed). Some types of applications, Agency, and the Defense Intelligence however, are not reported until issuance Agency. Employment figures represent the of the final certificate, which passes equi- number of persons who occupied civilian table title to the land to the applicant. 320 Federal Government Finances and Employment U.S. Census Bureau, Statistical Abstract of the United States: 2003 Figure 9.1 Federal Budget Summary: 1980 to 2003 Receipts, outlays, and surplus or deficit Trillions of dollars 2.5 Deficit Surplus 2.0 Deficit 1.5 Outlays Receipts 1.0 0.5 0 1980 '82 '84 '86 '88 '90 '92 '94 '96 '98 2000 '02 '03, est. Outlays and federal debt as a percent of gross domestic product Percent 80 Gross federal debt 70 60 50 40 30 Outlays 20 10 1980 '82 '84 '86 '88 '90 '92 '94 '96 '98 2000 '02 '03, est. Gross federal debt Trillions of dollars 7 6 5 4 3 2 1 0 1980 '82 '84 '86 '88 '90 '92 '94 '96 '98 2000 '02 '03, est. Source: Charts prepared by U.S. Census Bureau. For data, see Table 475. Federal Government Finances and Employment 321 U.S. Census Bureau, Statistical Abstract of the United States: 2003 No. 475. Federal Budget—Receipts, Outlays, and Debt: 1960 to 2003 [In billions of dollars (92.5 represents $92,500,000,000), except percent. For fiscal years ending in year shown; see text, Section 8. The Balanced Budget and Emergency Deficit Control Act of 1985 put all the previously off-budget federal entities into the budget and moved social security off-budget. Minus sign (-) indicates deficit or decrease] Gross federal debt 2 Held by the public Year Outlays as Federal Federal Surplus or percent of gov’t Reserve As percent Receipts Outlays deficit(-) GDP 1 Total account Total System of GDP 1 1960 ........ 92.5 92.2 0.3 17.8 290.5 53.7 236.8 26.5 56.0 1965 ........ 116.8 118.2 -1.4 17.2 322.3 61.5 260.8 39.1 46.9 1970 ........ 192.8 195.6 -2.8 19.3 380.9 97.7 283.2 57.7 37.6 1975 ........ 279.1 332.3 -53.2 21.3 541.9 147.2 394.7 85.0 34.7 1976 ........ 298.1 371.8 -73.7 21.4 629.0 151.6 477.4 94.7 36.2 TQ 3 ........ 81.2 96.0 -14.7 21.1 643.6 148.1 495.5 96.7 35.4 1977 ........ 355.6 409.2 -53.7 20.8 706.4 157.3 549.1 105.0 35.8 1978 ........ 399.6 458.7 -59.2 20.7 776.6 169.5 607.1 115.5 35.0 1979 .......