Full text of Budget in Brief : Fiscal Year 1976
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THI:: BUDGET DOLLAR
Fiscal Year 1976 Estimate
___~--...JOther
WHere it ((1'!1eG /r(1I1I ••• .
Excise
Taxes
i
Borrowing
15,
Individual
I",come Taxes
Corporation
Income Taxes
\
\
\
\
30,
14,
Social \nsurance
Redeipts
13,
\
\
13,
----.tIIi~ From Employers
\
From
Err,ployees
WHCJ"C it II"(S . ..
National
Defense
Direct
Benefit
Payments
to Individuals
39'
27,
/
/
/
Net
Interest
Giants
to/States
and,,(ocalifies
5,/
11,
Other Federal
Operations
For Individuals
Other
TABLE OF CONTENTS
Page
I.
II.
III.
IV.
BUDGET OVERVIEW.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BUDGET RECEIPTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
THE LONG RANGE OUTLOOK. . . . . . . . . . . . . . . . . . . . . .
THE FEDERAL PROGRAM BY FUNCTION.... . . . . . . . .
National defense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
International affairs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General science, space, and technology..................
Energy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Environment and natural resources. . . . . . . . . . . . . . . . . . . . . .
Agri cuI ture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commerce and transportation. . . . . . . . . . . . . . . . . . . . . . . . . .
- Community and regional development. . . . . . . . . . . . . . . . . . . . .
Education. . . . ....................................... ..
Manpower and social services. . . . . . . . . . . . . . . . . . . . . . . . . . .
Heal th. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income security. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Veterans benefits and services. . . . . . . . . . . . . . . . . . . . . . . . . . .
Law enforcement and justice. . . . . . . . . . . . . . . . . . . . . . . . . . .
General government. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Revenue sharing and other fiscal assistance. . . . . . . . . . . . . . .
Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
V. THE BUDGET PROCESS.. . . . . . . . . . . . . . . . . . . . . . . . . . .
VI. BUDGET TABLES... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GLOSSARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
9
13
19
19
22
24
25
26
28
29
30
32
33
35
37
39
40
41
41
42
43
47
63
N ote.-All years referred to are fiscal years, unless otherwise noted. Details in
the tables, text, and charts of this booklet may not add to totals because of
rounding.
Back-up data for charts in this book can be obtained from the Office of Management and Budget, Washington, D.C. 20503 ..
1
Budget Totals Since 1974
$ Billions
$ Bimons
Receipts
35<'
349.4
Outlays
3OC~
350
313.4
300
278.8
264.9 268.4
250
25('
200
150
100
lOC'
50
5()
0---
1976
1975
1974
--0
Estimate
Fiscal Years
Ft!deral Outlays as a Percent of GNP
Pel"cent
Percent
30 - r - - - - - - - - - - - - - - - - - - - - - - - - - - - r - 30
20
20
10
10
National Defense
0
(~
1966
67
I=iscal Years
2
68
69
70
71
72
73
74
75
76
Estimate
PART I
BUDGET OVERVIEW
The year 1976 will mark the bicentennial of the United States.
Therefore, this is the budget for the beginning of the third century of the Nation. Because of the size and momentum of the
budget, today's decisions will have far-reaching and long-lasting
effects. Consequently, the 1976 budget is designed to meet both
longer-term national needs, and the immediate, short-run objectives. The major budget recommendations will help restore
healthy economic growth without rekindling inflation, and carry
out the President's recommendation to reduce our dependence on
imported oil. They include:
-income tax relief of $16 billion in 1975 and 1976-$12
billion for individuals and $4 billion for businesses;
-greatly increased aid to the unemployed, totaling $17.5
- billion in unemployment insurance benefits and $1.3 billion
for public service employment;
.
-an import fee on oil and taxes on domestically produced
petroleum and natural gas and o-n their producers;
-a rebate to compensate users for the resulting higher energy
costs, with special provisions for ensuring that low-income
Americans and State and local governments are compen_
sated equitably;
-an increase in outlays for defense of $8.8 billion in order
to maintain preparedness and preserve force levels in the
face of rising costs;
-a 1 year moratorium on new Federal spending programs
other than energy programs; and
-a temporary 5% ceiling on increases in pay for Federal
employees, and on those Federal benefit payments to individuals that are tied to the cost of living, resulting in savings
of $6.1 billion.
Budget totals.-The budget recommendations result in total
outlays of $349 billion in 1976, an increase of $36 billion over
3
Fedleral Debt * as a Percent of GNP
. . . Percent .
Percent
l00 '~--~--------------------~--~--~----~l00
80
60
...
'
.
40
20
o
1950 52 54 56 58 60 62 64 66 68 70 72
Fiscal Years
* Debt Held
74 76
0
. Estimate
by the Public
1975, and anticipate receipts of $298 billion, an increase of $19
billion over 1975. This results in a budget deficit of $52 billion in
1976.
T:he deficit expected for 1976, as well as other factors, will
increase the Federal debt held by the public from $389.6 billion
at tbe end of 1975 to $453.1 billion at the end of 1976. Between
1950 and 1976, the Federal debt held by the public declined from
83%>of GNP to 28ro.
Aside from the effects of the proposed tax reduction, the deficits
anticipated for 1975 and 1976 are largely the inevitable result of
those aspects of the budget and the tax system that respond automatically to changes in the economy, such as budget receipts and
unernployment benefit payments. Unemployment benefit payments will rise sharply.
These stabilizing influences can be quite substantial. If the
ecollomy were to be as fully employed in 1976 as it was in 1974,
,ve \vould have $40 billion in additional tax receipts, assuming no
chaIlge in tax rates, and $12.7 billion less in aid to the unemployed. These two factors alone exceed the budget deficit for
1976.
4
Outlays for Aid to the Unemployed "
$ Billions
$ Billions
20----------------------------------------~20
18.8
Public Service Jobs
15
Unemploynient
Insurance
15
10
10
5
5
0 ....---
1974
Fiscal Years
. 1976
1975
--"'0
Estimate
While recommending temporary measures to help the economy
and to provide greater assistance to the unemployed, the budget
also seeks to eliminate nonessential spending and avoid commitment to excessive growth of Federal spending in the long run. For
tllis reason there are no new spending initiatives in this budget ,
other than those for energy. In addition, the budget recommends
tllat the allowable increase in Federal pay and in those benefit
payments to individuals that currently are linked to the cost of
living be limited to 5% through June 30 of next year. This
policy will save $6 billion in 1976 and permit the Administration to concentrate maximum resources on direct assistance to
the unemployed. Other measures-some of which have p'feviously been proposed are repeated in the budget-would reduce
outlays by an a·d ditional $11 billion in 1976.
Budget trends.-In recent years, there h~s been a significant
shift in the composition of the Federal budget. The proportion of
the budget devoted to defense has declined substantially since
1964, with a corresponding increase in the nondefense proportion
of the budget. This shift has been particularly rapid since the end
of American combat involvement in Vietnam. Defense outlays re-
5
Cl1langing Priorities
Percent
Percent
60 --,.-------"--- -- - - - - - - - - - - - - . , - - 60
50
50
~""'--...- ....,,/::::' National Defense
40
40
.~~
30
20
30
\
Benefit Payments for Individuals
20
Percent of Total Outlays
10
10
o
0
1966 67
Fiscal Years
68
69
70
71
72
73
74
75
76
Estimate
main.ed virtually level in current dollar terms from 1969 to 1974,
absorbing substantial cost increases. Defense programs have been
substantially reduced in real terms-over 40% since 1969 in manpower and material. Consequently, defense outlays have been a
decreasing share of our gross national product, falling from 8.9ro
in 1969 to 5.9ro in 1976.
I t is no longer possible to offset increases in the costs of defense programs by further reducing military programs and
strength. Therefore, this budget proposes an increase in defense
outlays in current dollars that will maintain defense preparedness and preserve manpower levels in the face of rising costs.
These proposals are the minimum prudent levels of defense
spen1ding consistent with providing armed forces which, in conjunction with those of our allies, will be adequate to maintain
the lnilitary balance. Keeping that balance is essential to our
national security and to the maintenance of peace.
At. the same time, Federal nondefense spending has increased
substantially in both current and constant dollar terms, growing
from 11.6% of gross national product in 1969 to an estimated
6
16.0% in this budget. In the process, the form that Federal spending takes has shifted dramatically away from support for direct
Federal operations and toward direct benefits to individuals and
grants·to State and local governments. Ab.o ut a third of the grant
funds also finance payments to individuals. Both legislated increases in benefit levels and built-in program growth have contributed to the doubling of outlays for domestic assistance in the
past 5 years. Outlays for assistance to individuals and to State and
local governments will rise from $140 billion in 1974 to $173
billion in 1975, and $190 billion in 1976.
In 1974, Federal aid supplied 21 % of total State and local
government receipts, more than twice the percentage of two
decades earlier. This budget recommends Federal grants-in-aid
of $56 billion in 1976 compared ·with $13 billion in 1966.
C onclusion..-The tremendous growth of our domestic assistance programs in recent years has, on the whole, been commendable. Much of the burden of aiding the elderly and the needy has
been shifted from private individuals and institutions to society as
a whole, as the Federal Government's income transfer programs
Federal Grants to State and Local Gover·nments
$ Billions
$ Billions
ro~----------------------------------~ro
50
50
40
Revenue
Sharing
40
_--r-~
30
30
Other Grants
20
20
10 .
10
o
0
1966 67
Fiscal Years
68
69
70
71
72
73
74
75
76
Estimate
7
have expanded their coverage. These programs cannot, however,
continue to expand at the rates they have experienced over the
past two decades. Spending by all levels of government now
makes up a third of our national output. Were the growth of
domestic assistance programs to continue for the next two decades at the same rates as in the past 20 years, total Government
spen(ding would grow to more than half our national product.
T11e growth of these domestic assistance programs has taken
place in a largely unplanned, piecemeal fashion. This has resulted in to·o many overlapping programs, lack of coordination,
and inequities. Some of the less needy now receive a disproportionate share of Federal benefits, while some who are more ne~dy
receive less. Congress and the Administration must redouble the
efforts of the past 5 years to rationalize and streamline these
progTams. This means working toward a stable and integrated
system of programs that reflect the conscience of a comp,assionate society but avoid a growing preponderance of the role of the
public sector over the private. It also means decentralizing Governnlent operations and developing a closer partnership between
the Federal Go·v ernment, State and local governments, and
indi'vidual private citizens.
T Jf1e Congressional Budget and Impoundment Control Act,
passed last summer, requires changes in the Federal budget and
basic reforms in co·ngressional procedures for dealing with it.
Under procedures established by the act, the Congress will have
a larger and more clearly defined role in developing budget and
fiscal policies. Congressional organization and procedures will be
charlged to focus greater attention on the budget totals early in
the legislative process. The act establishes a budget committee
in each chamber and a Congressional Budget .Office to aid Congress in its consideration of budget recommendations and shifts
the fiscal year to an October-to-September basis, giving the Congress more time to c0Il?-plete action on the budget before the fiscal ·
year begins. Therefore, Congress will approach this budget with
both new legislative machinery and procedures. A more detailed
disCllssion of the effects of the act is in the Budget Process sectio·n.
As the Nation approaches its bicentennial it . faces difficult
challenges. The recommendations in this budget address th'e Natjon.'s problems in a direct, constructive, and responsible fashion.
They are designed to move the Nation toward eco,n omic health
and stability. They meet human needs and they provide for the
stroIlg defense essential to our national security and to our continuJ[ng efforts to maintain world peace.
8
PART II
BUDGET RECEIPTS
This section describes the major sources of budget receipts
and discusses the legislative proposals affecting them. The economic assumptions underlying these estimates are presented in
Part III.
Total budget receipts in 1976 are estimated at $297.5 billion,
an increase of $18.8 billion from the $278.8 billion estimated for
1975. These estimates reflect the proposed legislation in the
budget which is described below.
Economic Stimulus and Energy Tax Proposals
On January 13, 1975, the President announced programs to
stimulate the eco'n omy and to reduce energy consumption. A temporary $16 billion tax cut will provide needed economic stimulus,
\vhile the energy program will permanently increase the cost of
oil and natural gas. The increased energy tax receipts resulting
from the energy program will be offset by increased Federal
spending, including payments to nontaxpayers.
Economic stimulus.-Income tax cuts to stimulate the economy will reduce receipts by $6.1 billion in 1975 and $10.2
billion in 1976. Individual income tax rebates, equal to 1270
of calendar year 1974 tax liabilities up to a maximum rebate of
$1,000, make up three-quarters of this $16 billion reduction. The
rebate will be paid in two separate checks during calendar year
1975.
Business taxes will be reduced by raising the investment tax
credit from 4% to 12% for utilities and from 7% to 12% for
other businesses. This proposal will reduce receipts by $1.2 billion
in 1975 and $2.9 billion in 1976.
Increased energy taxes.-The higher energy taxes fall into
three major categories. First, the President has increased import
fees on petroleum products.
9
· Second, a $2 per barrel excise tax on domestic crude oil, and
an excise tax of 37¢ per thousand cubic feet on natural gas is
prof.osed, increasing receipts by $3. 7 billion in 1975 and $19.0
billion in 1976.
Third, a windfall profits tax is proposed in the form of a
gracluated tax on the sale of domestic crude oil. This tax will
not affect 1975 receipts, but will increase 1976 receipts by $16.3
billion. The windfall profits tax collections will result primarily
froIll the decontrol of crude oil prices.
Energy tax offsets.-Increased energy taxes will be fully
returned to the economy, partially through reductions in individual and co-rporation income taxes, and partially through increased Federal spending directed toward those individuals and
those sectors of the economy affected by increased energy costs
but :not compensated by income tax reductions.
IIldividual income taxes will be reduced through three
challges. First, the minimum standard deduction will be increased from the present $1,300 for individuals and families to
$2,000 for individuals and $2,600 for families. Second, reduc-
Energy Proposals - Full Year Impact
( In Billions of Dollars)
Equalization Rebates
and Payments
$30 Billion
Energy Taxes
~, 30 Billion
Excise Taxes
& Import
Fees
Windfall Profits
12.0
Corporate
Income Taxes
Corporate Income
Tax Cut
6.5
10
tions in the rate structure are proposed. Finally, an income tax
credit of 15% of expenditures on energy-saving home improvements such as storm windows and insulation, limited to $150 over
3 years, is proposed. These proposals together would reduce 1975
receipts by $1.4 billion and 1976 receipts by $24.9 billion.
Corporation income taxes will be reduced by lowering the rate
from 48% to 42% retroactive to January 1, 1975. This will reduce receipts by $1.8 billion in 1975 and by $6.6 billion in 1976.
In addition to offsets through the tax structure, $7 billion of
offsets are included in the budget as outlays to compensate nontaxpayers, State and local governments, and Federal agencies
for higher energy costs. The rebate to nontaxpayers-estimated
at $2 billion-will take the form of an $80 annual payment for
each nontaxpaying adult.
Receipts by Source
The table below shows the growth in budget receipts by source
since 1974.
BUDGET RECEIPTS BY SOURCE
[In billions of dollars]
Source
1974
actual
Individual income taxes ........................ .
Corporation income taxes ........ . ............. .
Social insurance taxes and contributions (trust funds).
Excise taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other receipts ................................ .
119.0
Total .................................. .
264.9
38.6
76.8
16.8
13. 7
1975
estimate
1976
estimate
117.7
38.5
86.2
106.3
47. 7
19.9
32. 1
16.4
19.8
278.8
297.5
91. 6
Individual income tax receipts are estimated at $117.7 billion
in 1975 and $106.3 billion in 1976. The proposed tax law changes
outlined in the previous section reduce receipts from this source
by $6.5 billio·n in 1975 and $32.8 billion in 1976. In the absence
of these tax law changes, individual income taxes would increase
by $14.9 billion in 1976 rather than decline by $11.4 billion as is
.p rojected here.
Corporation income tax receipts are estimated at $38.5 billion
in 1975 and $47.7 billion in 1976. Proposed tax law changes reduce these receipts by $2.8 billion in 1975 and increase them by
$7.4 billion in 1976. In the absence of these tax law changes,
profits taxes would increase by $2.7 billion in 1975 and would
decrease by $1.0 billion in 1976.
11
Bucjget Receipts: 1966-1976
$ Billions
$ Billions
35Q~------------------------~~~~~~350
300
300
250
250
200
Excise and Other
200
150
100
50
o
1966
0
67
Fiscal Years
68
69
70
71
72
73
74
75
76
Estimate
Receipts from social insurance taxes and contributions are expected to total $91.6 billion in 1976, up by $5.3 billion from 1975.
Incillded in the total are social security and other payroll taxes,
unenlployment insurance taxes and deposits, Federal employee
retirement contributions and premium payments for supplementary medical insurance.
E}~cise taxes receipts in 1976 are estimated at $32.1 billion,
,vhich is $12.2 billion more than in 1975. The proposed legislation
for e][1ergy taxes increases these receipts by $3.0 billion in 1975 and
$15.2 billion in 1976, thus producing the sharp increase in excise
tax receipts in 1976.
Estate and gift taxes, customs, and miscellaneous receipts are
estirrlated to total $19.8 billion in 1976, an increase of $3.4 billion
from 1975. These figures reflect the imposition of increased fees
on ()il imports that increases miscellaneous receipts by $1.3
billic)n in 1975 and $3.8 billion in 1976.
12
PART III
THE LONG RANGE OUTLOOK
. Economic conditions strongly affect the budget just as the
budget, in turn, significantly influences economic conditions.
To an increasing degree, outlays for Federal programs are directly linked to developments in the economy. For example,
most retirement and other social insurance benefit payments are
tied by law to the consumer prices. Medicare and medicaid outlays are affected directly by the price of medical services. Interest
on the debt is linked to interest rates and the size of the budget
surpl~s or deficit, which in turn is inflllenced by economic conditions. Outlays for unemployment insurance vary directly with the
lIn employment rate. Similarly, budget receipts vary in accordance with individual and corporation incomes, which respond
to the course of the economy.
Because of the effect the economy has on the budget, the economic assumptions used strongly influence the long range budget
outlook.
The Economic Assumptions
The short-term economic assumptions used in the Budget have
been developed in a quite different way from the longer run
assumptions:
• The assumptions for calendar years 1975 and 1976 are forecasts of probable economic conditions during these years.
• The longer range assumptions for the period 1977 to 1980
are not forecasts of probable economic conditions, but rather
projections consistent with moving gradually toward relatively stable prices, and higher rates of employment and
economic growth.
The following table shows assumptions for economic factors
related to the budget: Gross national product in current and constant dollars, the GNP deflator, the Consumer Price Index, and
13
the unemployment rate. For 1976, the application of these eco..
nomic assumptions to program estimates has been modified by the
proposed 5ro ceiling·on increases in benefit payments to individuals, and on Federal employees' pay.
ECONOMIC ASSUMPTIONS
[Calendar years, dollar amounts in billions]
Item
1973
actual
Gross national product:
Current dollars ............. $1, 295
Con:)tant (1958) dollars:
$839
Alnount .................
Percent change ..........
5.9
Prices (percent change):
.GNP deflator ...............
5.6
COll.)umer Price Index .......
6.2
4. 9
Unemployment rate (percent) ..
1974
actual
$1,397
Assumed for purposes of budget estimates
1975
1976
1977
1980
$1,498 $1,686 $1,896 $2,606
$821
-2.2
$794
-3.3
$832
4.8
$879
5.6
$1, 061
6.5
10.2
11. 0
5.6
10.8
11. 3
8. 1
7.5
7. 8
7.9
6.5
6.6
7.5
4.0
4.0
5.5
The Long Range Budget Projections
TIle effects of current budget decisio·ns extend beyond the
fiscal year. They establish program trends that help to shape
the size and composition of budgets for years into the future.
Just as the composition and level of the 1976 budget have been
largely determined by past decisions, so too the decisions and
proposals it embodies will strongly affect subsequent budgets.
TIle receipts projections presented below are consistent with
the :foregoing economic assumptions, assuming continuation of
current tax law as modified by the proposals contained in this
bud~~et. The outlay and budget authority estimates presented
here indicate the degree to which resources would be committed
by tIle continuation of existing and currently-proposed programs
at trle program levels recommended for 1976. Thus, these projecti~Jns are not intended as forecasts, or as recommendations,
since the continuation of Federal programs and taxes is a matter
proI)erly subject to continuous review in light of changing
conclitions.
In. general, the projections for outlays assume program
levels remain fixed in constant dollar terms except where there
is all explicit budget recommendation to increase or decrease
prog'r am levels over time. One example is the anticipated increase
in e:nergy research and development programs between 1976
and 1977. Similarly, while defense manpower requirements are
14
assumed to remain constant, other defense purchases are assumed to rise by 4% a year in real terms. The projections allow
for changes in beneficiary populations of programs such as social
security. Allowan~es are also made for future cost-of-living adjustments to benefit levels, Federal pay raises, and other cost
increases. These allowances are consistent with the eco-n omic
assumptions outlined above, and with the effects of the proposed
5% ceiling on increases between 1975 and 1976.
Under the assumptions used here, receipts are ptr ojected to
increase by an average of 13.1 % a year between 1976 and 1980,
rising from $298 billion to $502 billion. Over the same period,
outlays for current programs and those proposed in this budget
are projected to rise by an average of 7.6% a year, from $349
billion to $477 billion.
THE FISCAL OUTLOOK, 1974-80
[In billions of dollars)
Outlays:
Payments for individuals .. . ......
Defense . ..........
Other ... . ........
Total projected
outlays .....
Receipts under current law ......... .
Effects of proposed tax
changes ...........
Total projected
receipts ... . .
Budget margin or
deficit (-) ...... ..
1974
1975
1976
110.3
78.6
79.5
137.3
85.3
90.8
152. 7
94.0
102.6
Transition
quarter
1977
1978
1979
1980
39. 7 169. 7 185.2 200. 1 214.8
25.8 105.5 120.4 131. 5 141. 4
28.9 118.0 119.8 120.3 120.4
--
268.4 313.4 349.4
94.3
393. 1 425.4 451.9 476. 7
264.9
283.8 303.6
85.5
364.0 416.0 465.5
. . ...
-5.0
-6.1
264.9
278.8
297.5
-3.5 -34.7 -51. 9
-1.1
517. 1
-1.5 -10.2 -13.2 -15.4
84.4 362.5 405.8 452.3
-9.8 -30.6 -19.6
.4
501.7
25.0
The projected 69% growth in receipts between 1976 and 1980
reflects growth in tax bases, the proposed temporary tax reduction
in 1976, and an increase in the average effective tax rate on personal income as inflation and rising real incomes move people into
higher tax brackets. This increase in effective tax rates, which is
i~plicit in a progressive income tax system, accounts for about
$25 billion of the total increase in individual income tax receipts
between 1976 and 1980. Over the past two decades legislated tax
cuts have offset implicit increases of this nature. Without these
reductions, total Federal receipts wo-u ld have risen to a much
larger percentage of gross national product than they now claim.
15
PROJECTED RECEIPTS BY SOURCE
[In billions of dollars]
Source
1976
Transition
quarter
1977
1978
1979
1980
Individual income taxes . . ......
Corporation income taxes ......
Social insurance taxes and con.
trl·butlons
................ . .
Excise taxes. . . . . . . . . . . . . . . . . .
Estate and gift taxes ..........
CustonJ.s duties ...............
Miscellaneous receipts .........
106. 3
47. 7
37.9
9.5
149.9
49.2
173.5
51. 0
196.9
55.3
222.0
61. 9
91. 6
32. 1
4.6
4.3
10.9
25.6
6.2
1.3
1. 1
2.8
108.3
33.4
5.5
4.8
11. 4
124.5
32.9
6.6
5.4
11. 9
139.9
34. 1
7.4
6.0
12. 7
153. 1
36.0
8.5
6. 7
13.5
Total budget receipts . ...
297.5
84.4
362.5
405.8
452.3
501. 7
the other hand, a significant portion of total income
taxes-perso,n al and corporation-will be replaced, under current prop,osals, by energy taxes on petroleum and natural gas.
Energy tax collections will be somewhat greater than the propose(:} offsetting income tax reductions in 1976, with the difference
.made up by outlays to compensate nontaxpayers, State and local
governments, and Federal agencies for increased energy costs. By
1980, however, total receipts will be reduced by $15 billion as a
result of these proposals. This occurs because the effect of income
tax reductions will grow over time due to growth in the tax base,
,,,,hile receipts from the proposed energy excises and import fees
will grow much more slowly, since they are based on increases in
energy consumption-which they are designed to discourage.
Also~ the prop-osed windfall profits tax will phase out over time.
This $15 billion net reduction in 1980 receipts serves to offset
mUC]l of the $25 billion implicit increase in income taxes, preventing total receipts from rising significantly as a percentage of
gross national product between 1977 and 1980.
0]1 the basis of the economic assumptions presented in the precedirlg section and tax law changes proposed in the budget, individual income taxes are projected to reach $222 billion by 1980,
an in.crease of $116 billion, or 109% over 1976. More than a fifth
of this increase is due to the rise in the average tax rate on taxable personal income. Over the same period corporation income
taxes are projected to increase by 30%, from $48 billion to $62
billion.
Increases in the taxable earnings base and rate under social
security, and increases in other social insurance taxes and contributions, will occur under current law to finance benefit increases.
0]1
16
The Fiscal Outlook to 1980
$ Billions
$ Billions
Budget Margin
500
500
400
400
300
300
200
200
100
100
Transition Quarter
o----~----~---.~---.----~--~--~~O
1974
1975
Fiscal Years
1976
Estimate
1977
1978
1979
1980
Projection
These increases, together with the growth in payrolls over the
next 5 years, are projected to raise social insurance taxes and
contributions from $92 billion in 1976 to $153 billion in 1980, a
67% increase. Estate and gift taxes, customs, excise taxes, and
miscellaneous receipts are projected at $65 million in 1980, an
increase of $13 billion from 1976.
Comparison of these outlay and receipts projections shows that
current proposals leave a potential surplus, or budget margin, in
1980. Whether this margin is used to finance tax decreases, new
programs, or debt reduction will depend on decisions made bet\veen now and 1980.
Most Federal domestic assistance programs-and some Federal programs for other purposes-create a legal entitlement to
benefits for all eligible recipients. Thus., statutory changes reducing eligibility or the rate of increase in benefits, are the only way
to control the growth of outlays for such programs. In 1967, such
"open-ended programs and fixed costs" made up 36% of total
outlays. By 1976, however, they will make up 59.2% of total out-
17
CONTROLLABILITY OF BUDGET OUTLAYS
[In billions of dollars]
Category
Relatively uncontrollable under
present law:
Open-ended programs and
fixed costs:
Pa.yments for individuals:
Social security and railroad retirement . . .. . .. .
Medicare and medicaid .. .
All other payments for
.individuals . .......... .
Subtotal, payments for
individuals ....... .
Net interest ........ . ... .
General revenue sharing . . .
Other open .. ended programs and fixed costs.
Total, open-ended programs and fixed costs,
curren t law ....... . . .
Proposed open -ended programs
and fixed costs 1 . . . . . . . . . . . .
Outlay~; from pnor-year con ..
tract~; and obligations ...... .
Relatively controllable outlays.
Undistributed employer share,
employee retiremen t ....... .
~'otal
budget outlays .. . .
1976
Transition
quarter
1977
1978
1979
1980
76.6
24. I
21. 4
6.4
89.9
28. 7
100. 1
32.9
109.9
37.6
119.4
42.6
64.3
15.4
66. 1
69.0
71. 4
73.6
165. 1
26. 1
184.8
29.3
3.3
202.0
28.8
218.8
28.5
235.5
27.9
6. 3
43.2
8.6
1.7
9.2
2. 7
11. 2
11. 2
11. 4
11. 6
206.8
56.2
228.6
242. 1
258.8
275.0
-7.5
-2.2
-6.0
-3.2
-4.0
-4.8
54.0}
100.0
41. 2
174.6
190.9
201. 7
211. 4
-3.9
-1.0
-4.1
-4.4
-4.7
-4.9
394.4
94.3
393. 1
425.4
451. 9
476. 7
.1
1 Includes general revenue sharing extension, less effect of proposed 5% ceiling on increases in benefit
payment::; to individuals between 1975 and 1976.
lays. i\S the table above indicates, this percentage is projected to
declille slightly to 57.7 % by 1980.
The momentum of Federal spending extends beyond "openende{l programs and fixed costs." Each year a substantial portion
of outlays under many other programs is legally required as payments come due under contracts or other obligations made in
earlier periods.
In the past the necessary fiscal policy adjustments have been increasingly concentrated on a smaH and diminishing portion of
total outlays-that part which was most readily "controllable."
New procedures being established under the Congressional
Budget and Impoundment Control Act of 1974 which is discussed
ill Part V, however, may make it more feasible in the future to
adjust all parts of the budget to meet current priorities, including
the programs that were once considered uncontrollable.
18
PART IV
THE FEDERAL PROGRAM BY FUNCTION
This section discusses budget authority and outlays in terms of
major functions or purposes. The functional-in contrast with an
agency-budget classification permits comparison of budget outlays for each major purpose, regardless of which agency is carrying out the activity. While the use of functional classifications extends back nearly three decades, it has been necessary to revise
the classifications from time to time. The 1976 budget contains
the results of the first major revision of the functional classification in 14 years. The criteria for the functional classification are.
discussed in detail in the Federal budget document.
National DeFense
Peace and international stability are major U.S. objectives.
National security programs contribute to these goals by helping to
maintain the worldwide military equilibrium that is essential to
peace. This equilibrium requires a balance in strategic forces between the United States and the Soviet Union, a balance in conventional forces in Central Europe between the NATO and
Warsaw Pact nations and a balance in naval strength between the
United States and the Soviet Union.
To achieve and maintain a military balance in each of these
three areas, U.S. forces must be strengthened. Improved strategic
nuclear forces and the development of possible strategic systems
for future deployment are planned in order to maintain clear
strategic deterrents against the spectrum of potential threats. The
fighting power of the general purpose forces will also be strengthened, but with little or no increase in present personnel ceilings.
This will be accomplished by shifting p~rsonnel from support
activities to combat functions and by modernizing weapon systems and equipment. The major change planned is an increase
in the number of active Army divisions from 13 in June 1974 to
19
16 by late 1976. The reserve and guard forces, which augment
the active forces, will receive better training, improved equipment:. and an increased share of combat responsibilities. The ta.ctical air forces will be modernized by the replacement of older
aircraft with newer and more capable aircraft. A vigorous shipbuilding program is planned to improve and expand the fleet.
Outlays for national defense programs are estimated to increase
from $85.3 billion in 1975 to $94.0 billion in 1976. This increase
is necessary to offset higher costs, and to maintain defense
./
preparedness.
The Vladivostok negotiations with the Soviet Union are a
significant achievement. For the first time in our negotiations
with the Soviet Union, we have reached an understanding on
speci1ic and equal limitations on the total number of strategic '
delivery vehicles and missiles with multiple independently targetab1le warheads ( MIRVs) . By establishing overall quantitative
limits, a substantial expansion of strategic forces can be avoided.
Within the limits of the agreement, the United States will continue to deploy an effective combination of strategic bombers,
land-based missiles and submarine-launched missiles, and will
.Def'ense* Outlays
$ Billions
$ Billions
100
100
00-
00
20
20
· 0- '
0
1'964 65 66
67
68
69
70 . 71
72
73
Fiscal Years
*Department of Defense-Military and Military Assistance
20
74
75
76
Estimate
develop options for the deployment of improved systems in the
future.
Most land, air, and naval forces are designed to perform the
general purpose mission of deterring or repelling attacks not
deterred by the threat of strategic nuclear retaliation. These
threats range from isolated incidents to major assaults by a combination of opponents.
Between 1968 and 1975, the general purpose forces were
sharply reduced following the U.S. disengagement from the conflict in Vietnam. Military personnel were reduced by 1.4 million,
from 3.5 million in 1968 to 2.1 million in 1975. This is the lowest
level since the Korean war and 556,000 less than in 1964 prior
to the Vietnam conflict. The number of active divisions, tactical
air wings and warships has also been reduced below pre-Vietnam
war levels.
The United States has initiated negotiations between the
NATO Alliance and the Warsaw Pact on mutual and balanced
force reductions. If these negotiations are successful, some United
States forces stationed in Europe could be withdrawn. For the
time being, however, the United States and its allies must maintain present manpower levels and strengthen conventional combat capabilities. This will be accomplished by shifting manpo·w er
from supp,o rt activities to combat functions, and by modernizing
weapon systems and equipment. Increased standardization of
equipment will also be emphasized.
With little or no increase in present manpower ceilings, combat
capabilities can be strengthened by an increase in the number of
active Army divisions and an offsetting reduction of headquarters and general support activities.
More extensive use of reserve combat components can further
augment the active forces. This will result in greater combat
power in the early days of con'flict.
The retirement of many aging ships built during World War II,
together with the rapid growth in the Soviet Navy, requires
that the United States maintain a vigorous program of new ship
construction and modernization.
The superiority of the tactical air forces will be maintained by
replacing older aircraft with newer and more capable aircraft.
Increased purchases of air-to-air and air-to-ground missiles are
proposed for all tactical air forces.
Research and development programs will increase to keep
U.S. forces modern and maintain technological superiority.
21
In acldition to continuing development of the B-1 bomber and
the 1'rident submarine and missile, major strategic increases provide options for future ballistic missile warhead and accuracy
improvement. A major increase is also planned for development
of arl advanced air combat fighter, a .new battle tank and an
attac:k helicopter system.
Military assistance and credit sales programs provide the support necessary to strengthen the efforts of other countries to
provide for their own defense. These programs are discussed in
the section on international affairs.
Tb.e development and underground testing of nuclear weapons
will i11crease primarily to complete weapons programs approved
before the effective date of the Threshold Test Ban Treaty.
The Selective Service System will begin major program adjustments in 1976 while a new standby system is tested.
Stockpile receipts in 1976 should decline from $1.2 billion
in 1975 to $620 million, reflecting lower demand and the exhaustion of existing disposal authority for certain key commodities.
International Affairs
Our domestic well-being depends upon our responsible involve1nent in the search for world peace and economic progress.
The lJnited States wil'! pursue this goal through arms control
negotiations, international economic cooperation, and foreign assistanfce. Outlays for international affairs are estimated to be
$6.3 btillion in 1976.
Foreign assistance includes both economic and military assistance. Economic assistance is given to poorer nations through
multilateral and bilateral programs. Multilateral development
programs are estimated to require outlays of $990 million in 1976
for U.S. participation in international development banks and
organizations.
Bilateral devel'opment assistance, administered principally by
the A!~ency for International Development (AID), focuses on increasing food production in response to current world needs.
Budget authority for food and nutrition programs will be $629
millio:n in 1976. Food for Peace serves U.S. foreign policy objectives and -c omplements AID's concentration on food production
by providing food aid to alleviate hunger and malnutrition.
Other bilateral foreign aid programs include Indochina postwar reconstruction assistance, which helps that region maintain
22
economic stability, and supporting assistance largely for the
Middle East, which helps that area maintain the progress toward
a negotiated peace.
In addition, the State Department provides assistance to foreign countries and international organizations for international
narcotics control and for refugee assistance.
Military assistance supports the defense efforts of friendly
countries through grants, credits, and sales. Military assistance
outlays, which are in the defense function, are estimated to be
$3.0 billion in 1976, $2.8 billion of foreign aid and $.2 billion of
sales.
The dramatic increases in the price of oil have upset the
patterns of international trade and finance. The U.S. has propfosed a special financing facility to provide sUP'P'o rt for industrialized countries with major balance of payment difficulties,
resulting from these trade and financial dislocations. In 1976
budget authority of $7.0 billion is estimated for this facility.
~n 1976, an estimated $83 million in outlays will support 6,000
Peace Corps volunteers, $784 million in outlays will 'be spent for
the conduct of foreign affairs, and $412 million in outlays will
be spent for foreign information and exchange programs.
Outlays for International Affairs
Percent
Percent
8~--------------------------------~8
6
6
Special Financing Facility
4
4
2
2
o
1966
Other Foreign Affairs Activities
0
67
Fiscal Years
68
69
70
71
72,
73
74
75
76
Estimate
23
General Science, Space, and Technology
Olltlays for general science, space and technology programs
are estimated to be $4.6 billion in 1976. The 1976 budget provides $3.2 billion for a space program that includes manned and
unmanned space flight, space science development, and the applica1tion of space technology for such purp,oses as improved
weat]ler pTediction. The increase of $278 million in outlays above
the 1975 level is required to continue an orderly buildup in the
space shuttle program designed to provide more economical
manLled access to space beginning in the 1980's. In July 1975, the
United States and the U .S.S.R. will conduct a joint rendezvous
and docking mission.
The 1976 budget also provides funds to assure balanced Federal support of research, particularly in basic science, and to
develo·p knowledge important to the long-term solution of nationa] problems such as energy. Outlays for the National Science
Foun(iation and for physical research in the Energy Research and
Development Administration will increase by an estimated $91
million to $1.1 billion in 1976.
OIJtlays for General Science and Space
$ Billions
$ Billions
8-~------------------------------------~8
6
6
Total
4
Lunar Program
2
2-
o------..
1966 67 --~--------~~---.-------------~o
76
Fiscal Years
24
Estimate
Energy
Federal energy programs are divided into three broad categories: General operating programs, regulatory programs, and research and development programs. Outlays for all of these energy
programs are estimated to be $2.2 billion in 1976.
Included in general operating programs are the analysis and
development of energy policy, the leasing of federally owned oil,
natural gas, and coal resources, and uranium enrichment. Net
outlays for operating programs will total $498 million in 1976.
In order to increase domestic energy production over the next
10 years, a program to prepare for leasing oil and gas lands in all
new areas on the Outer Continental Shelf is being pursued, and a
tentative schedule of sales has been drawn up. A decision to lease
an area will be made only after a determination that unacceptable adverse environmental impacts will not occur.
Uranium enrichment operations, which provide services for a
fee to civilian nuclear powerplants, must increase significantly in
order to meet future demands. Gross outlays for uranium enrichment activities will be $738 million in 1976.
Energy R&D Outlays
$ Simons
$ Billions
2.0 - - y - - - - - - - - - - - - - - - - - - - - - - - . - - 2.0
Nuclear, Breeder Reactor
Other Nuclear Power
1.5
1,,:{.l,,:,.x,1 Fossil Fuel and Other
1.66
1.5
1.22
1.0
1.0
.82
.5
.5
1974
Fiscal Years
Estimate
25
Fe(ieral energy regulation affects the development and sale of
petroJleum, natural gas, electric power and the use of nuclear
materials and facilities. Outlays for energy regulation in 1976
will tc)tal $164 million.
The expanded Federal program of energy research and developme.nt reflects the Administration's commitment to develop new
and ilnproved technologies that will provide the United States
with the capability to expand the use of domestic energy resources
in an economic and environmentally acceptable manner. The
major elements of the program cover nuclear energy (both fission
and fusion), fossil energy, conservation through increased efficiency, environmental controls, and solar and geothermal energy.
The I>rogram will be carried out largely by the newly created
Energy Research and Development Administration.
O.u tlays for energy research and development programs will
increase from $1.2 billion in 1975 to $1.7 billion in 1976. This
increase is distributed among all major program areas and reflects
further growth in programs that increased by about 50% from
1974 to 1975.
The nonnuclear portion of the Federal energy research and
development effort, such as solar energy an·d coal development, is
estimated to be 40% of the recommended total budget authority
in 1976. In the nuclear energy program, major increases are provided for the liquid metal fast breeder reactor and the nuclear
fusion programs. '
Environment and Natural Resources
Natural resources and environmental' programs encourage the
wise rrlanagement of the Nation's natural resources, balancing developrnent and environmental needs while at the same time conservin!~ these resources for future generations. Outlays for these
programs, before deducting offsetting receipts, are estimated to
be $9.~~ bil'lion, about the same level as for 1975. After deducting
offsetting receipts, outlays will be $7.8 billion.
The Federal Government carries out a broad range of programs to help control pollution, including research, enforcement
of starLdards, and grants to State and local governments for the
constrl1ction of sewage treatment facilities. Outlays for pollution
control and abatement programs in 1976 are estimated to increase by $59 million· to a level of $3.0 billion, three-fourths of
which 'will be for construction of waste treatment plants.
26
Outlays for water resources and power programs are estimated
to be $3.3 billion in 1976. These programs provide electrical
power, water supplies, flood control, irrigation and recreational
opportunities.
Conservation and land management outlays in 1976 will be
$0.9 billion, a decrease of $333 million from last year largely due
to the planned termination of the agricultural conservation
program.
The Forest Service will continue its multiple purpose management of national forests. It will accumulate a 2-billion boardfoot inventory of timber prepared for sale to meet future demand
increases and will prepare a long-term plan and an assessment of
renewable resources.
Outlays for recreational programs are estimated to increase
from $800 million in 1975 to $856 million in 1976, of which land
acquisition alone totals $292 million.
Outlays for other natural resources programs will increase
from $546 million in 1975 to $607 million in 1976. The bulk of
this increase will go to programs of the National Oceanic and
Atmospheric Administration.
Outlays for En-vironment and Natural Resources
$ Billions
$ Billions
9~--------------------------------------~9
8
8
7
7
6
6
5
5
4
Conservation, Recreation,
and Other
4
3
3
2
2
1
1
o
0
1966 67
Fiscal Years
68
69
70
71
72
73
74
75
76
Estimate
27
Agriculture
In recent years, farm income support has dropped dramatically
as far1TI income has increased. However, in 1974, net farm income
decreased 17% despite higher food prices, which were caused
by poor weather and rising marketing costs. Federal outlays
for agricultural programs are expected to be $1.8 billion in 1976,
of which 49% will be for farm income stabilization.
Payments to farmers for disaster relief included in income
stabilization may reach $592 million in 1975. The Administration is: developing a less costly alternative involving an expansion
of all-peril crop insurance.
The Administration's policy is to encourage farmers to respond
more freely to the forces of the m.a rketplace. Consequently, the
Administration has removed Federal restrictions on planted acreage ""here legally possible and has proposed the reduction of
Federal control over three additional crops.
Outlays for agricultural research will increase to $367 million
in 1976, and will help increase production of grain, meat and
vegetable protein.
OIJtlays for: Agriculture
$ B lIions .
$ Billions
6-~--------------------------------------~6
5
5
4
4
3-
3
2
1
67
68
69
70
71
72
74
75
76
Estimate
Fiscal Years
).
28
73
o
Commerce and Transportation
Outlays for transportation programs are estimated to increase
from $10.4 billion in 1975 to $11.4 billion in 1976. For 1976, obligations for highway programs will total $5.4 billion, including
$3.0 billion for interstate highways. Legislation will be proposed to modify the gasoline tax and the highway trust fund
structure and to reduc.e unused highway authorizations. The legislation will give priority to interstate highway c.onstruction and
to providing more discretion to State governments in the use of
noninterstate highway funds. The National Mass Transportation Assistance Act of 1974 provides $11.8 billion in Federal
assistance over the next 6 years. Federal obligations in 1976
for mass transit will exceed $2.0 billion. Although outlays for
Amtrak will increase by $59 million to $360 million, much of
the increase will be required to offset Amtrak's rapidly rising
operating deficit.
Air transportation legislation will broaden the activities
financed by aviation trust fund receipts, and allocate fees more
equitably among aviation system users. Outlays for air transpor-
Outlays for Transportation
$ Billions
$ Billions
12----------------------------------------~12
10
10
8
8
6
6
4
4
2
2
o
0
1966
67 "68
Fiscal Years
69
70
71
72
73
74
75
76
Estimate
29
tation are estimated to be $2.7 billion, with an additional $1.7
billiorL for water transportation.
The Federal Government helps promote commerce through a
variety of programs such as the housing credit market. In response to temporary difficulties in the housing market, Federal
support for nearly $23 billion in mortgage loans has been authorized, including $6 billion under the Emergency Home Purchase
Assistance Act. To assure adequate housing credit in the future,
the A(lministration has urged passage of the Financial Institutions l\ct, which would enable savings and loan associations to
compete more effectively for funds without subsidies. Rural
housirLg programs are being redirected to provide more assistance
to low"er income families through purchase of existing housing
and low-interest rehabilitation loans.
In 1976, the subsidy to the U.S. Postal Service will be reduced
$341 Inillion to $1.5 billion. This reflects the continuing phasedown of subsidized postage rates as ,veIl as elimination of a special
one tirne cost incurred during 1975.
The Small Business Administration will give top priority to
assistiIlg established small businesses that are in temporary difficulty \ivith an estimated $316 million for direct loans. The Office
of Minority Business Enterprise expects to assist over 27,000
minority-owned firms in 1976.
Community and Regional Development
The Administration's policies for community and regional developnlent stress local initiative, with Federal assistance supplemellting State and local resources. Budget outlays in 1976
for c01nmunity and regional development are estimated to be
$5.9 billion, an increase of $1.0 billion over outlays in 1975.
Ne\'V commitments under the community development grant
program, which has replaced seven categorical grant and loan
programs, are estimated to be $2.6 billion in 1976. Outlays of $1.3
billion under this program, together with outlays of $1.7 billion
under the categorical programs being phased out, will result in a
$900 nlillion increase for community development in 1976. The
budget also includes outlays of $121 million for comprehensive
plannillg grants and research on community development and
housin~~ problems.
In 1976, there will be approximately 20,000 full-time and
200,000 part-time volunteers participating in domestic volunteer
30
programs under ACTION, which will continue to emphasize
local involvement. Legislation was recently enacted that established the Community Services Administration to succeed the
Office of Economic Opportunity.
In 1976, loans for rural business and industrial development,
as well as loans and grants for rural water, sewer, and other community facilities, will exceed $1 billion.
Programs to help States and communities respond to the problems of persistent unemployment will be expanded in 1976 to
provide $356 million under new legislation permitting aobroader
range of aid.
The development of American Indian communities is also a
continuing concern. Net outlays for Indian development programs will increase by $69 million to $500 million in 1976.
Although private insurance and affected State and local governments are primarily responsible for alleviating problems
brought about by natural disasters, Federal aid is available to
supplement State and local resources under the Disaster Relief
Act. By the end of 1976, subsidized flood insurance will be available in 16,000 communities.
Outlays for Community and Regional Development
$ Billions
$ Billions
8
8
6
6
Disaster Relief
and Insurance
4
4
2
2
o
1966
Community Development
67
Fiscal Years
68
69
70
71
72
73
74
75
76
0
Estimate
31
Education
The primary responsibility for support of public education
rests \vith the programs of State and local governments. The
goal of Federal assistance to education is to help equalize education.a l opportunity at all levels and to help local and State education. agencies by assisting in the development of improved techniques and programs. Federal outlays for education programs are
estimated at $7.4 billion in 1976.
Fed.eral elementary and secondary education programs include
aid to educational agencies based on formula grants and discretiO]lary project grants. These grants are for special assistance
to disadvantaged students and the development of programs to
meet special needs. The Education Amendments of 1974 provide
for a 11ew distribution of funds for disadvantaged children and
the establishment of two new consolidated grant programs. The
1976 l)udget also includes proposed legislation that would consolidate vocational education support and provide greater flexibility for State agencies, move Federal support toward innovation, and increase the State share of these program costs. Outlays
Outlays for Education
$ Billions
8
------~----~--------------------------~8
6
6
4
4
2
2
o
0
1966 67
FiSCed Years
32
$ Billions
68
69
70
71
72
73
74 · 75
76
Estimate
for Head Start, a preschool program for the disadvantaged, are
estimated to be $425 millio'n in 1976, reaching 379,000 c.hildren.
Funds for higher educatio·n are concentrated on direct financial
aid for undergraduate students. Budget authority for basic educational opportunity grants is estimated to be $1.0 billion in 1976,
providing grants of up to a statutory ceiling of $1,400 for an estimated 1.3 million undergraduates in the 1976-77 school year.
In addition, budget authority of $250 million for work/study
programs will help 520,000 students in school' year 1976-77 and
the guaranteed student loan programs will assist 1.1 million students in 1975-76. Outlays to supp,o rt improvement of developing
institutions, including p,r edominantly black colleges, will continue to rise in 1976.
Manpower and Social Services
The Federal GoverI?-ment finances State and local programs
that help individuals obtain jobs through training, employment
services, or temporary public jo·bs. It also sets and enforces minimum wage and other standards regulating employment and
labor-management relations practices. Outlays for Federal manpower programs are estimated at $4.5 billion in 1976, an increase
of over 3% over 1975.
In response to the President's request, the Congress in December 1974, authorized a temporary unemployment assistance and
public employment program to help unemployed workers cope
with the currently increased difficulty of obtaining employment.
The major part of this pro'g ram, special unemployment benefit
payments, provides aid to all eligible workers who have lost jobs
and cannot find new ones. It is discussed in the income security
section with other unemployment compensation. The second part,
temporary employment assistance, will enable States and localities to create temporary jobs for unemployed workers, primarily
those who have been out of a job for a long time or have used up
their unemployment compensation. States and localities are encouraged to develop special projects outside their regular wo,r k
programs in order to employ as many unemployed workers as fast
as possible. It is expected that $650 million will be spent on such
jobs in 1976.
The Comprehensive Employment and Training Act (CETA)
enters its second full year of operation in 1976. In 1975, States and
localities are receiving authority to use $2.3 billion to finance 10-
33
cally conceived plans to train or employ people in ways that best
fit the needs of th.e local employment situation. Portions of this
amount, together with funds made available late in 1974, have
provided $1 billion on an accelerated schedule to finance 170,000
transitional public service jobs for the unemployed. A substantial
amount of the 1975 funding will remain" available in 1976 to
finance similar jobs in that year. In addition, as States and localities org-anize to carry out their new responsibilities under CETA~
significant amounts of 1975 authority will remain available in
1976. lrhese carryovers, plus 1976 budget authority equal to that
provided in 1975, will support over 636,000 man-years of training
and emlployment in 1976.
Additional outlays of approximately $370 million will be spent
in 1976 for special national manpower programs. These include
progralns for migrant workers, Indians, and the Job Corps, as well
as research and evaluation projects.
.
Hell) in obtaining jobs is provided by the work incentive program (WIN) to those receiving aid to families with dependent
childre:n. Every recipient able to work must register. The goal for
1976 is to place 140,000 in jobs lasting 90 days or more. Outlays
Ou1tlays for Manpower and Social Services
$ Billions
$ Billions
8
8
6
6
4
4
Public Service Jobs
2
2
Manpower Training and Other Manpower
o
1966
67
Fisca I Years
34
68
69
70
71
72
73
74
75
76
Estimate
0
for the WIN program are expected to total $315 million in 1976,
about the same as estimated for 1975.
The Federal G.o vernment pays 100% of the cost of the State
offices providing job matching services to workers and employers. Out~ays for the service in 1976 are estimated at $521 million,
$11 million less than in 1975.
Recently enacted legislation will provide the States with
much more flexibility in planning and operating social service
programs. Under proposed legislation, the State share of financing those programs will increase from 25% to 35% in 1976, and
to 50% in 1977. Therefore, Federal funding for social services
and related activities will decline by $366 million in 1976 to a
level of $2.7 billion. However, the level of services will not decline
because of the increased State share. A total of $806 million will
be provided for rehabilitation services and $279 million for services to the aged and other special groups.
Health
Federal health programs include the financing and provision
of health services, research, the prevention of health problems,
and the training of health personnel. Outlays for Federal health
programs are estimated to be $28 billion in 1976, an increase of
$1.6 billion over 1975.
Medicare and medicaid are the major Federal programs for
financing medical care. In 1976, medicare outlays of $15 billion will help to meet the medical costs of over 13 million aged
and disabled Americans. Medicaid outlays of over $7 billion will
help almost 26 million low-income Americans. The budget includes a proposal to reform medicare cost-sharing provisions and
a proposal to reform the Federal-State share of medicaid costs.
Outlays of $459 million are being requested for the provisi~n
of medical services through project grant activities, including
the Indian Health Service. Efforts to improve the ways in which
health services are made available ,viII
be continued in 1976.
Outlays for biomedical research are estimated at over $1.7 billion in 1976, an increase of over 15% since 1974. Major emphasis
will continue to be placed on cancer research, for which outlays
are estimated to be $582 million in 1976.
In 1976, Federal outlays for the training of health personnel
are estimated at $620 million. As in other fields of higher education, Federal assistance in 1976 will emphasize aiding students
35
rather than institutions. Students in. the health professions who
can anticipate high earnings can be expected to finance a greater
share of their educational costs. General purpose support to institutions will be phased out as Federal assistance shifts toward
more selective funding of training activities responsive to national priorities. In 1976, Federal support will be provided for
1,100 individual post-doctoral research fellowship awards, based
on nationwide comp,etition. No new predoctoral sup,p ort for
researc.h training is proposed.
States and localities will be assisted in establishing new consolidated health resources planning agencies to replace the present., du:plicative health planning programs.
A revised health facilities construction assistance pro'g ram will
assist ill the modernization of existing inpatient facilities and the
constnlction of new outpatient facilities.
Outlays for programs to prevent and control health problems
in the areas of consumer safety, communicable disease control,
and occupational safety are estimated to be $920 million in 1976.
Outlays of $461 million are being requested for consumer safety
and $459 million for disease prevention and control.
Hea Ith Outlays
$ Billions.
$ Billions
30
--~----~--~--------------~~~~~· 30
25
25
20
20
15
15
10
10
5
5
o
0
1966
67
. Fiscal Years
36
68
69
70
71
72
73
74
75
76
Estimate
Income Security
The Federal income security programs help to replace income
that is lost through retirement, disability, death or the unemployment of wage earners. They also supplement the income of
families in need. These programs are expected to total $118.7
billion in 1976, 34% of all Federal outlays. The Administration
is proposing that all programs that have benefit increases directly
linked to cost of living are to be limited to 5 % increases through
1976.
The unemployinent benefit programs play a large role in
mitigating the effects of a downturn in the economy. Approximately 14.4 million workers will receive a total of $17.5 billion
in unemployment benefits in 1976. Temporary legislation pro,vides for up to 13 additional weeks of benefits on top, of the regular program of 26 weeks, plus the State extended program of 13
weeks for covered workers. It also provides up to 26 weeks of
benefits for workers not covered by State law. Other programs to
help the unemployed are discussed in the Manpower and Social
Services section.
Social security is the world's largest retirement, survivors, and
disability insurance program, providing an average annuity of
$235 a month to 32.2 million recipients in 1976. Outlays for
social' security in 1976 will be $ 70.1 billion, an increase of $6.6
billion over 1975. Other Federal retirement systems will provide
$11.5 billion in benefits for retired or disabled railroad workers
and Federal civilian employees.
Outlays for the Supplemental Security Income program, which
reolaced the State welfare programs for the aged, blind, and
disabled, are estimated to be $5.5 billion in 1976. To improve the
efficiency of the system in the next year, all aspects of the program
will be montitored and where needed legislative changes will be
recommended.
Outlays for the program of Aid to Families with Dependent
Children are expected to be $4.7 billion in 1976. This budget
proposes reform~ to improve manag-ement and reduce abuses in
this program. An indication of the abuses is that of an estimated
~.2 million cases on the rolls in June 1974, 9.3% are ineligihle. 20.6% are receiving overpayments, and 8.0% are receiving
underpayments.
The Food Stamp and Child Nutrition programs provide addi ..
tional benefits in the form of cash and food to insure the needy
37
the oPF,ortunity for an adequate diet. Outlays for the Food Stamp
prograln are estimated to be $3.6 billion in 1976, about the same
as 1975. The incidence of rising costs and the need for more
efficiency in family feeding programs have prompted the administratioll to propose program improvements.
Outlays for child nutrition programs, including school lunches
and otller nutrition programs, will reach approximately $1.7
billion. The Administration proposes to substitute a comprehen-sive block grant program to help provide meals only for needy
childrell instead of the presently fragmented programs which aid
both the needy and non-needy under the Child Nutrition and
School :Lunch Acts.
This budget proposes approval for 400,000 units in 1976 under
the lower income housing assistance program. It also provides for
the initiation of a performance funding system to improve the
operation of public housing projects, increasing subsidies from
$450 m:illion in 1975 to $525 million in 1976.
Total housing payments for the subsidized housing program
are esti1nated to reach $2.6 billion in 1976, an increase of $478
million.over 1975.
-
Incomle Security Outlays
$ Billions
$ Billions
140
--------------------------------~~~~140
120
120
100
100
80
80
Unemployment
Insurance
60
60
40
40
20
20
o
1966
0
67
68
69
70
71
72
73
74
Fiscal Years
*Includes other income supplements such as food stamps and SSI
38
75
76
Estimate
Veterans Benefits and Services
The budget recognizes the Nation's continuing obligation to
provide support for veterans. Outlays for benefits and services to
veterans and their families are estimated to be $15.6 billion in
1976. Compensation is paid to those veterans who have a servicerelated disability that impairs their earning ability. Outlays for'
compensation payments will reach $4.6 billion in 1976. In addition, pensions for non-service connected disability and for elderly
veterans and survivors will reach $2.7 billion in outlays in 1976.
Under recently enacted legislation, monthly payments for the
educational benefits of the "GI bill" have been increased 22.7%,
entitlement has been extended 9 months, in some instances, and
direct Veterans education loans have been initiated. Outlays for
Veterans educational benefits are estimated to be $3.6 billion. In
1976, the Veterans Administration will assist 366,000 veterans
through its guaranteed home mortgage loan program.
This budget also provides funds for the nationwide civilian
medical care system for veterans. Outlays for medical programs
will reach $3.9 billion in 1976.
Outlays for Veterans Benefits and Services
$ Billions
$ Billions
16~--------------------------------------~16
Total
12
12
8
8
4
4
Income Security
o
1966 67
Fiscal Years
0
68
69
70
71
72
73
74
75
76
Estimate
39
Law EnForcement and Justice
Federal law enforcement programs include both direct action
in areas of Federal jurisdiction and assistance in support of State
and loeal agencies. Outlays of $3.3 billion will be used to encourage m()re effective law enforcement, prompt administration of
justice~ and improved rehabilitative programs.
Outlays for the Law Enforcement Assistance Administration,
the principal source of Federal assistance to State and local governmel1ts, are estimated to be $887 million. In addition, the new
Legal ,Services Corporation will provide assistance to indigent
defendants. Outl'ays for direct Federal law enforcement and-prosecutiorl will be $1.7 billion. The Immigration Service will increase
its outlays by $34 million or almost 20% to address the severe
illegal alien problem. The Justice Department's Antitrust Division w:ill also expand to help reduce inflationary pressures by
increasing competitiveness in the economy.
The constitutional guarantees of equality are enforced through
civil ri~~hts programs, not only in the Justice Department, but in
all other Federal agencies.
0utlays for Law Enforcement and Justice
-$ Billions $ Billions
3.5 . . ---~------'-"--------~~--~ 3.5
3.0
_2.5
Law Enforcement
Assista nce
2 .0
1.5
Judicial and
Correctional Activities
0.5
67
FisCcd Years
40
68
69
70
71
72
73
74
75
Estimate
General Government
General government programs encomp-ass many fundamental
Federal activities that cut across agency and functional lines,
such as revenue collection. In 1976, these activities include
those associated with the celebration of the American Bicentennial, the management of Government personnel and property,
and the U.S. territories and possessions. Outlays for general g.overnment programs in 1976 are estimated to be $3.2 billion.
Outlays for the Internal Revenue Service will be increased by
$42 million to $1.6 billion to strengthen tax administration and to
offer more assistance to taxpayers. The budget proposes outlays
of $21 million for the American Revolution Bicentennial Administration, which will coordinate the Rederal role in the celebration of the American Bicentennial. Outlays for the Civil Service
Commission are estimated to be $113.2 million, with greater emphasis placed on increasing efficiency of personnel operations.
Outlays for the territories and possessions will increase $25 million in 1976, mostly for programs related to the Trust Territory
of the Pacific Islands.
Revenue Sharing and Other Fiscal Assistance
General revenue sharing, now in its third year, has become
an important part of the Federal grants-in-aid system. It provides $30.2 billion in outlays over a 5-year period, including
$6.3 billion in 1976. One-third of these outlays go to State governments and two-thirds go to local governments, subject to
minimal restrictions and controls. The Administration will recommend that the general revenue sharing program, which
terminates at the end of calendar year 1976, be extended through
fiscal year 1982. Proposed energy taxes will substantially increase
costs for State and local governments. A proposed $2 billion
annual payment to compensate them will be distributed using the
general revenue sharing formula. This payment will' start in the
last quarter of 1975.
In addition to general revenue sharing, the Federal Government returns all or part of revenues collected in certain jurisdictions from such activities as Federal mineral leasing and timber
sales. The District of Columbia's operating budget is also partly
financed by an annual Federal payment, which is estimated to be
$260 million in 1976.
41
Interest
Bud~~et
outlays for the interest function will rise by $3.3 billion
in 1975, and by another $3.1 billion in 1976, reaching $34.4
billion.
By 1977, these costs are projected to reach $40.1 billion. These
increases result primarily from the financing of budget deficits
in each of these years.
A su'bstantial amount of interest outlays is paid to trust funds
on Go,'ernment securities held by the funds. These payments
amount to $8.3 billion in 1976, over 24% of total interest outlays.
The interest that is paid to trust fllnds is deducted from both
outlays and budget authority in arriving at budget totals, since
it is an intragovemmental transaction. Therefore, net interest
outlays are projected to be $26.1 billion in 1976.
In a~]dition, $6.1 billion of the interest paid on securities held
by the Federal Reserve banks will be returned to the Treasury
as miscellaneous receipts.
Hence, the amount of interest in 1976 that must be financed
fro~ receipts or additional borrowing will be $20.0 billion.
Interest Outlays
$ Billions
40
$ Billions
-.--------------------~
30
30
Paid to Trust Funds
20
20 .
10
10
o
1966 67
Fisccd Years
42
40
0
68
69
70
71
72
73
74
75
76
Estimate
PART V
THE BUDGET PROCESS
The budget sets forth the President's proposed financial plan
of operation for the Federal Government and thus serves as an
important vehicle for determining national priorities. This year
the budget process begins to undergo a major change due to
the enactment of the Congressional Budget and Impoundment
Control Act of 1974. This Act establishes new congressional
budget procedures, a new fiscal' year period, and requires new
information to be presented in the Federal budget. The 1976
budget covers the fiscal year beginning July 1, 1975, and ending
June 30, 1976. However, subsequent fiscal years will start on
October 1, and end on September 30. As a result, there will be
a 3-month transitio·n quarter between fiscal years 1976 and 1977.
The budget process under the new Congressional Budget Act
retains the four interrelated phases: (1) executive formulation
and transmittal, (2) congressional authorization and appropriation, (3) budget execution and control, and (4) review and audit.
Executive formulation and transmittal.-The President's
transmittal of his budget proposals to the Congress each year is
the result of many months of planning and analysis throughout
the executive branch. Formulation of the 1976 budget began in
the spring of 1974. After agency programs are evaluated, policy
issues are identified, and budget projections are made, preliminary program plans are presented to the President.
Following a review of the budget projections, the President
establishes general budget and fiscal policy guidelines for the fiscal
year that now begins about 12 months later. Tentative policy
determinations and planning targets are then given to the agencies as guidelines for the preparation of their budgets.
Proposed budgets are formulated by agencies, reviewed in
detail by the Office of Management and Budget in the
fall' and then presented to the President along with overall fiscal
policy issues. The budget submitted to Congress in February
43 ·
1975, thus, reflects the President's recommendations for both
indiviclual program levels and total outlays and receipts appropriate to the state of the economy. Supplemental budget requests
may be submitted later to cover needs unforeseen at the time the
budget was formulated. This timetable will remain the same
under the new budget procedures. However, in addition to the
regula r budget, the President will also transmit to Congress in
Novenlber a current services budget which will contain preliminary estimates of costs of continuing existing programs, without
policy changes for the year ahead.
Congressional authorization and appropriation.-The Congress, 'N"hich has the power to eliminate or add programs not requestecl by the President, begins its review when the President
sends l1is budget to the Congress. As a result of the new Congressional Budget Act, a new legislative agency, the Congressional
Budget Office, and new Committees on the Budget in each House
have l)een established to assist the Congress in focusing on
overall budget totals, as well as the specific programs. In
considering specific programs, the Congress first enacts legislation
that authorizes an agency to carry out a particular program
and, iJrl some cases, sets a limit on the amount that can be
subsequently considered for appropriation for the program. Many programs are authorized for a specific number of years, or
even irLdefinitely; other programs, such as nuclear energy, defense
procurement, and foreign affairs, require annual authorizing
legislation. The granting of budget authority usually is a separate,
subsequent action. In most cases, budget authority becomes available each year only as voted by the Congress. However, in some
cases, the Congress has voted permanent budget authority, under
which funds become available annually without further congressional action.
Congressional consideration of requests for appropriations and
for changes in revenue laws follo·ws an established pattern. They
are cO]lsidered first in the House of Representatives, where the
Ways and Means Committee reviews proposed revenue measures
and the Appropriations Committee, through its subcommittees,
study the proposals for appropriations. These committees then
recom]nend the action to be taken by the House of Representatives. }~s parts of the budgets are approved by the House, the appropriations and tax bills are forwarded to the Senate, where a
similar process is followed. In case of disagreement between the
two Houses of Congress, a conference committee (consisting of
44
Members of both bodies) resolves the issues and submits a report
to both Houses for approval. Measures are then transmitted to the
President, in the form of an enrolled bill, for his approval or veto.
When action on appropriations is not completed by the beginning
of the fiscal year, the Congress may enact a "continuing resolution" to provide authority for the affected agencies to continue
operations until their regular appropriations are approved.
The new Congressional Budget Act has established a firm
schedule for the congressional authorization and appropriation
process. When fully in effect the new Act will require that by
April 1 the House and Senate Budget Committees receive reports
on budget estimates from each Appropriations Committee of
Congress, as well as a fiscal policy report from the Congressional
Budget Office. By May 15, the Budget Committees will adopt
a concurrent budget resolution containing budget targets. By
September 15, the Congress will complete action on setting
budget ceilings; and by September 25, Congress will complete
action on any required reconciliation bill or resolution.
Budget execution and control.-Once approved, the budget
becomes the financial basis for the operations of agencies during
the fiscal year. Most budget authority and other budgetary resources are made available by the Office of Management and
Budget under an apportionment system that assures the effective
and orderly use of available authority.
The Congressional Budget and Impoundment Control Act of
1974 provides that the executive branch may regulate the rate of
spending by deferring the avail'ability or by proposing the rescission of budget authority, subject to the approval of the Congress.
Deferrals-temporary withholdings of budget authority that
cannot extend beyond the end of the fiscal year-may be overturned by either House of the Congress at any time. On the other
hand, rescissions, proposed by the President, permanently cancel
existing budget authority if enacted by the full Congress within
45 days of continuous session. Without congressional enactment,
the funds withheld must be made available for obligation.
Review and audit.-Individual agencies are responsible for
assuring that the obligations they incur and the resulting outlays
are in accordance with the laws and regulations. The Office of
Management and Budget reviews program and financial reports
and the General Accounting Office, a congressional agency,
regularly audits, eval'uates, and reports on the Government
programs.
45
Relation of Budget Authority to Outlays
The J)udget authority appropriated by the Congress for a fiscal
year is more than the obligations or outlays within that year
because:
• Budget authority for some major procurement and construction covers estimated full cost at the time programs are
started, even though outlays take place over a number of
years as the programs move toward completion.
• Budget authority for many loan and guarantee or insurance
programs also provides financing for a period of years or
re])resents a contingency backup.
• Bu.d get authority for trust funds represents mainly receipts
from special taxes, which are used as needed over a period
of years for purposes specified in the law.
As a result, substantial unspent budget authority is always carried over from prior years. Most of it is earmarked for specified
'purposes, and is not available for new programs.
Relation of Budget Authority to Outlays -1976 Budget
Figures in brackets represent Federal funds only
.i:''';;'~·~;::'?::)'m·?~'(",~~'",{'?'?;::'''='''':'-'~
Nevf Authority
Rec,ommended
for 1976
To be spent in 1976
237.8
[208.9]
349.4
385.8
[254.2]
[291.8]
tUnsp,ent Authority
~ Enacted in
. , Plrior Years
..
493.9
.,
[327.5]
46
Outlays
in 1976
To be spent
in Future Years
354.3
[254.3]
~~1I;:::::::::ili
Unspent Authority"
For Outlays in ~
Future Years . ,
502.4
..
[337.31
.,
"'ART VI
BUDGET TABLES
Page
1. Budget Receipts, Outlays, and Debt, 1966-76. . . . . . . . . . . . . . .
2. Budget Receipts by Source and Outlays by Function, 1966-76.
3. Percentage Distribution of Budget Receipts by Source and
Outlays by Function, 1966-76. . . . . . . . . . . . . . . . . . . . . . . . . .
4. Budget Outlays by Function and Subfunction, 1966-76. . . . . . .
5. Budget Authority and Outlays by Agency, 1974-76. . . . . . . . . .
6. Outlays and Receipts of Trust Funds, 1974-76. . . . . . . . . . . . . .
7. Composition of Budget Outlays in Constant (fiscal year 1969)
Prices, 1955-76. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8. Federal Finances and the Gross National Product, 1954-76....
9. Summary of Full-Time Permanent Civilian Employment in the
Executive Branch, 1974-76. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10. Budget Outlays and Authority for the Transition Quarter by
Function and by Agency. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
II. Budget Receipts and Outlays, 1789-1976. . . . . . . . . . . . . . . . . . .
48
49
50
51
56
57
58
59
60
61
62
NOTE
• Backup data for charts in this book can be obtained from the Office of
Management and Budget, Washington, D.C. 20503.
• More detailed budget tables are included in Part 7 of the Budget of the
United States Government, 1976.
47
.~
00
Table 1. BUDGET RECEIPTS, OUTLAYS, AND DEBT, 1966-76 (in billions of dollars)
Description
1966
1967
1968
1969
1970
Receipts and outlays:
Receipts:
Federal funds ........................
Trust funds. . . . . . . . . . . . . . . . . . ........
In terfund transactions. . . . . . . . . . . . . . . ..
101. 4
33.0
-3.6
Ill. 8
42. 9
-5.2
114. 7
44. 7
-5.8
143. 3
52.0
-7.5
Total budget receipts. . . . . . .........
130.9
149. 6
153. 7
Outlays:
Federal funds ........................
Trust funds ..........................
In terfund transactions. . . . . . . . . ........
106.5
31. 7
-3.6
126.8
36. 7
-5.2
Total budget outlays . ...............
134. 7
Surplus or deficit (-):
Federal funds. . . . . . . . . . . . . . . . . . . . . . ..
Trust funds ......... .................
Total surplus or deficit. .......... ...
Outstanding debt, end of year:
Gross Federal debt ......................
Held by:
Govern men t agencies. . . . .............
The public ..........................
Federal Reserve System .............
Others ............................
Actual
Estimate
1971
1972
1973
1974
1975
143.2
59.4
-8.8
133.8
66.2
-11. 6
148.8
73.0
-13.2
161. 4
92.2
-21. 3
181. 2
104.8
-21. 1
186.0
118.7
-25.9
199.3
126.5
-28.3
187.8
193.7
188.4
208.6
232.2
264.9
278.8
297.5
143. 1
41. 5
-5.8
148.8
43. 3
-7.5
156.3
49. 1
-8.8
163. 7
59.4
-11. 6
178.0
67. 1
-13.2
186.4
81. 4
-21. 3
198. 7
90.8
-21. 1
229.0
110.3
-25.9
254.2
123.4
-28.3
158.3
178.8
184. 5
196.6
211. 4
231. 9
246. 5
268.4
313.4
349.4
-5.1
1.3
-14.9
6. 2
-28.4
3. 2
-5.5
8.7
-13. 1
10. 3
-29.9
6. 8
-29.1
5. 9
-25.0
10. 7
-- 17. 5
14.0
-43.0
8.3
-54.9
3. 1
-3.8
-8.7
-25.2
3. 2
-2.8
-23.0
-23.2
-14.3
-3.5
-34.7
-51. 9
329. 5
341. 3
369.8
367. 1
382.6
409.5
437. 3
468.4
486.2
538.5
605.9
64. 8
264. 7
42.2
222. 5
73. 8
267. 5
46. 7
220.8
79. 1
290.6
52.2
238.4
87. 7
279.5
54. 1
225.4
97.7
284.9
57.7
227.2
105. 1
304. 3
65. 5
238. 8
113.6
323.8
71. 4
252. 3
125.4
343.0
75.2
267.9
140.2
346. 1
80.6
265.4
149.0
389.6
152.9
453. 1
1976
Table 2. BUDGET RECEIPTS BY SOURCE AND OUTLAYS BY FUNCTION, 1966-76 (in billions of dollars)
Actual
Description
1968
1969
1970
1972
1971
1973
1974
1975
1976
55.4
30. 1
25.6
13. 1
3. 1
1.8
1.9
61. 5
34.0
33. 3
13. 7
3.0
1.9
2. 1
68. 7
28. 7
34.6
14. 1
3. 1
2.0
2. 5
87.2
36. 7
39.9
15.2
3.5
2. 3
2.9
90.4
32.8
45. 3
15. 7
3.6
2.4
3.4
86.2
26.8
48.6
16.6
3. 7
2.6
3.9
94. 7
32.2
53. 9
15.5
5.4
3. 3
3.6
103.2
36.2
64.5
16.3
4.9
3.2
3.9
119.0
38.6
76.8
16.8
5.0
3. 3
5.4
117. 7
38.5
86.2
19.9
4.8
3.9
7. 7
106.3
47. 7
91. 6
32. 1
4.6
4.3
10.9
Total receipts .....................
130.9
149. 6
153.7
187. 8
193. 7
188.4
208.6
232.2
264.9
278.8
297. 5
55. 9
4. 6
6. 8
3. 1
2.4
9.0
1.5
4. 1
2.6
28. 9
5. 9
.6
1.4
69. 1
4. 7
6. 3
3.4
3.0
9.2
1.7
6.0
6.8
30.8
6.9
.6
1.6
79.4
4. 6
5. 6
3.6
4. 5
10.6
2.2
7.0
9.7
33.7
6.9
.6
1.7
80.2
3.8
5. 1
3.5
5. 8
7. 1
2.5
6. 9
II. 8
37. 3
7.6
.8
1.6
79.3
3.6
4. 6
3.6
5.2
9. 1
3.5
7. 9
13. 1
43. 1
8. 7
1.0
1.9
76.8
3. 1
4. 3
4.4
4. 3
10.4
4.0
9.0
14. 7
55.4
9.8
1.3
2.2
77.4
3. 7
4. 3
5.0
5. 3
10.6
4. 7
11. 7
17. 5
63.9
10. 7
1.6
2. 5
75. 1
3.0
4.2
5.5
4. 9
9.9
5.9
11. 9
18.8
73.0
12.0
2. 1
2. 7
78.6
3.6
4.2
6.4
2.2
13. 1
4.9
11. 6
22. 1
84.4
13.4
2.5
3.3
85.3
4.9
4.2
9.4
1.8
11. 8
4.9
14. 7
26.5
106. 7
15.5
3.0
2.6
94.0
6.3
4.6
10.0
1.8
13. 7
5.9
14.6
28.0
118.7
15.6
3.3
3.2
.2
11. 3
.3
12.5
.3
13.8
.4
15.8
.5
18. 3
.5
19.6
.5
20.6
7. 2
22.8
6. 7
28. 1
7.2
34.4
8.0
-20.2
349.4
Total outlays ......................
1967
RECEIPTS BY SOURCE
Individual income taxes ...................
Corporation income taxes ..................
Social insurance taxes and contributions .....
Excise taxes ... '. . . . . . . . . . . . . . . . . . . . . . . . . . .
Estate and gift taxes ......................
Customs duties ...........................
Miscellaneous receipts .....................
OUTLAYS BY FUNCTION
National defense 1 . . . . . . . . . . . . . . . . . . . . . . . . .
International affairs ......................
General science, space, and technology ......
Natural resources, environment, and energy ..
Agriculture. . . . . . . . . . . . . . . . . . ............
Commerce and transportation ..............
Community and regional development ......
Education, manpower, and social services ....
Health ..................................
Income securi~ ..........................
Veterans bene ts and services. . . . . . . . . ....
Law enforcement and justice ...............
Genera] government ......................
Revenue sharing and general purpose fiscal
assistance. . . . . . . . . . . . . . ................
Interest ........................ . ........
Allowances 2 • • • . . . . . • . • • • . • . . . • . • • . . • . • • •
Undistributed offsetting receipts ...........
~
(.0
1966
Estimate
1
..
-3.6
-4.6
-5.5
-5.5
-6.6
-8.4
-8.1
-12.3
-16.7
7.0
31. 3
.7
-16.8
134.7
158.3
178.8
184.5
196.6
211. 4
231.9
246.5
268.4
313.4
.. .. .. .. .
.. .. .. .. .. ..
Includes civilian and military pay raises for Department of Defense.
.. .. .. . .. ..
.. .. .. ..
2
. ..
.. ..........
.. .. .. .. .. ..
..
..........
.. ..........
............
Includes energy tax equalization payments, civilian agency pay raises, and contingencies.
Table 4. BUDGET OUTLAYS BY FUNCTION AND SUBFUNCTION: 1966-76 (in billions of dollars)
Function and Su bfunction
National defense:
Department of Defense-Military:
Military personnel ...................
Retired military personnel. . . . . . . . . . . .
Operation and maintenance ...........
Procure men t. . . . . . . . . . . . " . . . . . . . . . . .
Research and development ............
Military construction and other ........
Allowances 1 . . • • . . . • . . . . • • . • . • • • • • . •
Deductions for offsetting receipts .......
Subtotal, Department of DefenseMilitary ........................
Mili tary assistance. . . . . . . . . . . . . . . . . . . . .
Atomic energy defense activities .........
Defense-related activities ...............
Deductions for offsetting receipts .........
~
1966
15.2
1.6
14. 7
14.3
6.3
2.3
. .. .. .
-.2
1967
18.0
1.8
19.0
19.0
7.2
2.6
.. . .. .
-.1
67.5
54.2
1.0
.9
1.5
1.3
-.8
-.5
.... .. ... ...
1968
1969
23.0
2.8
21. 6
21. 6
7.2
1.1
1971
1972
23.0
3.9
21. 7
17. 1
7.9
1.7
1973
1975
1976
23. 7
5. 1
22.5
15.2
8.6
2.6
25.0
6.3
25. 7
14.8
8.6
2.8
-.2
-.3
25.0
6.9
28.2
16.6
9.6
2.7
1.3
-.6
-.1
-*
77.9
.8
1.4
·2
-*
77.2
.7
1.4
-*
-*
74.5
1.0
1.4
-.1
-*
75.2
·8
1.4
*
-*
73.3
·5
1.4
-.2
-*
77.6
.8
1.5
-1.3
-*
83.0
1.8
1.6
-1.1
89.8
3.0
1.8
-.5
.. ....
-.2
77.4
·7
1.3
·1
. .. .. .
......
-.1
23.2
4.4
21. 1
15.7
8.2
·9
. . . .. .
-.1
1974
22.6
3.4
20.9
18.9
7.3
1.6
... ...
-.1
19.9
2. 1
20.6
23.3
7. 7
4.0
21. 4
2.4
22.2
24.0
7.5
·5
..... .
-.1
1970
Estimate
... .. . . .. . . .
-*
-*
Total national defense .............
55.9
·69.1
79.4
80.2
79.3
76.8
77.4
75. 1
78.6
85.3
94.0
International affairs:
Foreign economic and financial assistance.
Conduct of foreign affairs ...............
Fo~eign information and exchange activi-
4. 1
.4
4.5
.4
4.2
.4
3.4
.4
3.2
.4
2. 7
.4
3.3
·5
2.8
.5
2.8
.6
4. 1
.7
5.5
tIes ................................
Deductions for offsetting receipts .........
.2
-.1
.2
-.4
·3
-.2
·2
-.2
.2
-.2
.2
-.3
·3
-.3
·3
-.6
.3
-.2
.4
-.2
.4
-.4
Total international affairs ..........
4.6
4.7
4.6
3.8
3.6
3. 1
3.7
3.0
3.6
4.9
6.3
See footnotes at end of table.
c..n
Actual
.8
U1
N
Table 4. BUDGET OUTLAYS BY FUNCTION AND SUBFUNCTION: 1966-76 (in billions of dollars) -Continued
'F.st.im~tp.
" ,.4-"n
1
U\.4\M4
4. ... v
Function and Subfunction
1966
General science, space, and technology:
General science and basic research .......
Earth sciences .........................
Manned space flight ...................
Space SCience, applications, and technology .............................
Supporting space activities ..............
Deductions for offsetting receipts .........
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
.9
.1
3. 1
.9
.1
2.8
.9
.1
2.2
1.0
.1
1.9
1.0
.1
1.7
1.0
.1
1.5
1.0
.2
1.5
1.0
.2
1.5
1. 1
.3
1.7
1.2
·5
1. 1
-*
-*
.9
.4
-*
.9
.4
-*
1. 1
.3
1.2
.3
-*
1.2
.3
-*
1.0
.3
1. 1
.4
-*
1.0
.4
6.8
6.3
5.6
5.1
4.6
4.3
4.3
4.2
4.2
4.2
4.6
1.7
.6
.2
.2
.5
.2
-.4
1.8
.7
.3
.2
.5
.3
-.4
1.8
.7
.3
.2
.7
.3
-.4
l.7
.6
.4
.3
.6
.3
-.4
l.7
.7
.4
.4
.6
.3
-.5
2. 1
.9
.5
.7
.4
.4
-.5
2. 3
.8
.5
.8
.6
.4
-.5
2.5
.7
.6
l. I
.7
.4
-.5
2.5
.8
.7
2.0
.6
.5
-. 7
3.3
1.3
.8
2.9
1.5
.5
-.9
3.3
.9
.9
3.0
2.2
.6
-.9
Total natural resources, envIronment and energy ...............
3.1
3.4
3.6
3.5
3.6
4.4
5.0
5.5
6.4
9.4
10. 0
Agriculture:
Farm income stabilization ..............
Agricultural research and services ........
Deductions for offsetting receipts .........
2.0
.4
2. 5
.5
4.0
.5
5. 3
.5
4.6
.6
3. 7
.6
4.6
.7
4. 1
.8
.9
.9
-*
-*
-*
-*
-*
-*
-*
-*
.9
.9
-*
1.5
.8
Total agriculture .................
2.4
3.0
4.5
5.8
5.2
4.3
5.3
4.9
2.2
.9
.1
4.2
3.6
1.2
.4
Total general SCience, space, and
technolo gy ............ .........
Natural resources, environment, and
energy:
Water resources and power .............
Conservation and land management ......
Recreational resources .................
Pollution control and abatement .........
Energy ...............................
Other natural resources ................
Deductions for offsetting receipts .........
.
-*
·9
·1
.4
-*
-*
-*
.
-*
-*
1.8
1.8
---
Commerce and transportation:
Mortgage credit and thrift insurance ......
Payment to the Postal Service ............
Other advancement and regulation .......
Ground transportation ..................
Air transportation ......................
Water transportation ....................
Other transportation ....................
Deductions for offsetting receipts ..........
Total commerce and transportation.
U1
U:;)
1.5
1.7
.7
5.6
2.2
1.4
.1
- .1
-1.0
1.8
.7
6.4
2.5
1.5
.1
-.1
-. 1
9. 1
10.4
10.6
9.9
13. 1
11. 8
13.7
2.6
1.2
.3
-.2
3. 1
1.4
.4
-.2
3. 1
1.4
1.6
-.2
3.0
1. 1
.8
3.3
1. 1
-*
-*
4. 1
1.4
.5
-.2
2.3
1. 1
.2
-.2
2.8
1. 1
.5
4.4
1. 1
.9
-.6
.9
.2
4.4
1.2
.9
·1
1.5
.5
4. 7
1.4
.9
-.3
2.2
.5
5.2
1.8
1. 1
-*
-*
*
-*
*
-*
*
-*
*
9.0
9.2
10.6
7. 1
.7
1.3
1.0
.1
-.2
1.6
1. 1
......
*
-*
1.8
.5
5.4
1.9
1. 1
.2
1.5
.7
6.9
2. 7
1.7
.1
Community and regional development:
Communi ty development ................
Area and regional development ...........
Disaster relief and insurance .............
Deductions for offsetting receipts ..........
.2
-.2
1.0
.7
.1
-.2
Total community and regional development ......................
1.5
1.7
2.2
2.5
3.5
4.0
4.7
5.9
4. 9
4.9
5.9
Education, manpower, and social services:
Elemen tary, secondary, and vocational
education ...........................
Higher education .......................
Research and general education aids ......
Man power training. . . . . . . . . . . . . . . . . . . . .
Other man power services. . . . . . . . . . . . . . . .
Social services. . . . . . . . . . . . . . . . . . . . . . . . . .
Deductions for offsetting receipts ..........
1.9
.7
.1
1.0
.1
.3
2.6
1.2
·3
1.2
·I
.6
2.8
1.4
.3
1.6
.1
.8
2. 7
1.2
.3
1.6
.1
.9
3. I
1.4
·5
1.6
·1
1. 1
-*
-*
3.5
1.4
.5
2.0
.2
1.4
4.0
1.4
.5
2.9
.2
2. 7
3. 7
1.5
.7
3.3
.2
2.5
3.8
1.3
.9
2.9
.2
2.5
4.2
2. 1
.9
4. 1
.3
3. 1
4. 2
2. 3
.8
4. 2
.3
2. 7
Total education, manpower, and
. I servIce
. s. . . . . . . . . . . . . . . . . . .
socIa
4. 1
6.0
7.0
6.9
Health:
Heal th care services .....................
Health research and education ...........
Prevention and control of health problems.
Health planning and construction .........
Deductions for offsetting receipts ..........
1.2
.9
.3
.3
-*
4.9
1.2
·3
·3
-*
7.6
1.4
.3
.4
-*
Total health .......................
2.6
6.8
9.7
See footnotes at end of table.
-.1
*
*
-1. 2
1.6
.6
5.6
2.2
1.2
.1
-.1
1.8
1. 1
.4
4. 1
1.0
.8
2.0
.9
.3
4. 1
1.0
.7
.8
-*
-*
-*
*
.5
-*
-*
-*
-*
7.9
9.0
11.7
11.9
11.6
14.7
14. 6
9. 5
1.5
.3
.4
-*
10.6
1.6
.4
.5
-*
12. 1
1.7
.5
.5
-*
14.5
2.0
.5
.4
-*
15.5
2.3
.6
.4
-*
18.5
2.3
.8
.5
22.3
2. 7
.9
.6
24. 1
2.5
.9
.6
11. 8
13. 1
14.7
17.5
18.8
22.1
---
-*
---
-*
-*
-*
26.5
-*
-*
--28.0
----
CJ1
~
Table 4. BUDGET OUTLAYS BY FUNCTION AND SUBFUNCTION: 1966-76 (in billions of dollars)-Continued
.I.
_~
•• _1
'li""+~n'>ft+ft
..... uv .. .&.&.A-..t,I¥
.c1\i"UQ~
Function and Subfunction
Income security:
General retirement and disability insurance
Federal employee retirement and disability
l1nemploymentinsurance ...............
Public assistance and other income supplemen ts ..............................
Deductions for offsetting receipts .........
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
21. 4
1.7
2.3
22.8
2. 1
2.5
24.6
2. 7
2.4
28. 3
1.7
2.6
31. 3
2. 7
3.4
37. 5
3.2
6.2
42.0
3.8
7. 1
51. 7
4.5
5.4
58.6
5.6
6. 1
67.5
7. 1
14. 7
74.4
7.9
18.2
3.4
3.5
4. 1
4. 7
5. 7
8.6
11. 1
11. 4
14. 1
-*
-*
-*
-*
-*
-*
-*
18.4
-*
-*
17.4
Total income security ... ........ ..
28.9
30.8
33.7
37.3
43. 1
55.4
63.9
73.0
84.4
106.7
118.7
Veterans benefits and services:
Income security for veterans ............
Veterans
. education, training, and rehabili-
4.2
4. 7
4.5
5.0
5.6
6.0
6.3
6.5
6.8
7. 7
7. 7
.1
1.3
.2
.2
.3
1.4
.3
.5
1.5
.2
·2
.7
1.6
.1
.2
1.0
1.8
.1
.3
2.0
2.4
-.3
.3
-*
-*
-*
3.6
3.9
-.1
.5
-*
.4
4.0
3.6
-.3
.5
-*
2.8
2. 7
-.4
.4
3.2
3.0
-*
1.7
2.0
-.2
·3
tatlon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
-*
-*
Hospital and medical care for veterans ...
Veterans housing. . . . . . . . . . . . . . . . . . . . . .
Other veterans benefits and services ......
Deductions for offsetting receipts .........
-*
-*
-*
Total veterans benefits and services.
5.9
6.9
6.9
7.6
8.7
9.8
10.7
12.0
13.4
15.5
15.6
Law enforcement and justice:
Federal law enforcement and prosecution.
Federal judicial activities ...............
Federal
. . .correctional and rehabilitative
.4
.1
·5
·1
·5
·1
·5
·1
·7
·1
.8
·2
1.0
.2
1.2
·2
1.3
.2
1.6
.3
1.7
.4
.1
Law enforcement assistance .............
Deductions for offsetting receipts .........
*
-*
·1
*
-*
·1
*
-*
·1
*
-*
·1
·1
-*
·1
·2
.1
.4
-*
-*
·2
·6
.2
.8
-*
-*
.2
.9
-* '
.3
1.0
.6
.6
.6
.8
1.0
1. 3
1.6
2. 1
2.5
3.0
3.3
act! VI tIes. . . . . . . . . . . . . . . . . . . . . . . . . . .
Total law enforcement and justice ..
·2
-*
-*
-*
-*
General government:
Legislative functions ....................
Executive direction and management ......
Central fiscal operations .................
Central property and records management ..
Central personnel management ...........
Other general government ...............
Deductions for offsetting receipts ..........
Total general government .........
Revenue sharing and general purpose fiscal
assistance:
General revenue sharing .................
Other general purpose fiscal assistance ......
.3
·2
.2
.2
·7
·6
.7
.7
.8
.6
-.1
.2
-.2
.2
-.2
.1
-.2
1.4
1.6
1.7
1.6
.3
.2
-.1
l.0
.6
.1
.2
-.1
.4
.1
l.2
.7
.1
.2
-.1
.4
·1
l.2
·9
·1
.2
-.2
.5
.1
l.3
l.0
.1
.4
-.2
.6
.1
l.7
.2
.1
.5
-.5
-.2
1.9
2.2
2.5
2.7
3.3
2.6
3.2
. . . . . . ...... . . . . . . . . . . . . . . . . . . . . . . . . . .....
.4
.5
.3
.3
.5
.5
.2
6.6
.6
6. 1
.6
6.2
.9
6.3
.9
*
*
*
•
*
*
*
*
*
.8
.6
*
.9
.6
*
*
.7
.1
1.8
.2
.1
.J
Total revenue sharing and general
purpose fiscal assistance ...........
.2
.3
.3
.4
.5
.5
.5
7.2
6.7
7.0
7.2
Interest:
Interest on the public debt ...............
Other in terest. . . . . . . . . . . . . . . . . . . . . . . . . .
12.0
-.7
13.4
-.9
14.6
-.8
16.6
-.8
19.3
-1.0
21. 0
-1.4
21. 8
-l.3
24.2
-1.4
29.3
-l.2
32.9
-1.6
36.0
-1.6
Total interest .....................
11. 3
12.5
13.8
15.8
18.3
19.6
20.6
22.8
28.1
31.3
34.4
. . .. . . . .. . . . ... . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . ...
.7
8.0
-3.3
-6.6
-4.1
-7.8
-3.9
- 8.3
Allowances 2. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed offsetting receipts:
Employer share, employee retirement ......
Interest received by trust funds ............
Rents and royalties on the Outer Continental Shelf............ . ................
•
-1.4
-1.9
-1.7
-2.3
-1.8
-2.7
-2.0
-3.1
-2.4
-3.9
-2.6
-4.8
-5.1
-2.9
-5.4
-.2
-.6
-1.0
-.4
-.2
-1.1
-.3
-4.0
-6.7
-5.0
-8.0
Total undistributed offsetting receipts .................... . ......
-3.6
-4.6
-5.5
-5.5
-6.6
-8.4
-8.1
-12.3
-16.7
-16.8
-20.2
Total outlays ......................
134.7
158.3
178.8
184.5
196.6
211.4
231.9
246.5
268.4
313.4
349.4
L~
than $500,000.
1 Includes allowances for civilian and military pay raises for Department of Defense.
2 Includes allowances for energy tax equalization payments, civilian agency pay raises, and contingencies.
.3
-2.8
Table 5. BUDGET AUTHORITY AND OUTLAYS BY AGENCY, 1974-76 (in millions of dollars)
Department or other unit
Legislative branch . . . . .. .. . . . . ... .... . ... .. .. . . . . .. .... . ... .
Th e judiciary .... ... . .... . .. . . . . .. . .. ..... .... .. ..... .... ..
Executive Office of the President . . . .. .. .. . . .... .... . . .. . .. . . .
Funds appropriated to the President ....... .... ... ... . . . . .....
Agricul ture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commerce ....... . . ... . .. . ........ . ....... .. ......... ... . .
Defense- Military 1 •.• . . . . . . . . . . . . . . . . . . . . . .. .. . . . . . . . . . . . . .
Defense- Civil . ............ .. .. .... ........... . .......... . .
Health, Education, and Welfare . . ....................... . . . ..
Housing and Urban Development . ... . . ............... . .... . .
Interior . .. .. ..... . .... . ... . ................. . ... . .........
Justice . ... .. ... .. . . .... . .... .. ..... ... ....... . .. . .... . ....
Labor ...... ... .. ..... . ... . ..... . ..... . ..... . . . .. . . . .. . . . .
State .. . .. .. . .. .. . . ... ... .......... . ... . .... ... . ... ...... .
Transportation . . .. . . .. . .......... . ...... .. .......... . .. . . . .
Treasury .. . . .. . .... . .. . . . .. .. .. .. .. ... .. .. . .. .... .. . .. .. ..
Energy Research and Development Administration 2 • • •• . . . .. . ..
Environmental Protection Agency ... . . . . . . . .. ... .. . . ... .. .. . .
General Services Administration . ... . .. . ... .. . . . . .. ... .. ... .. .
National Aeronautics and Space Administration .... . ... . ... . ...
Veterans Administration ............ . . . ........ . ...... . .. . .. .
Other independent agencies ........... . . . .... . ... . .... . .. . ...
Allowances 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed offsetting receipts:
Employer share, employee retire men t. . . . . . . . . . . . . . . . . . . . . . .
Interest received by trust funds ...... . ......... . ............
Rents and royalties on the Outer Continental SheJf .. ........ .
Total budget authority and outlays .... . ... .. . . . . .. ... . ..
Budget authority
1974
actual
657
213
97
12,430
13, 144
1, 501
81, 073
1, 779
100,857
8, 110
1, 961
1, 921
10,640
814
17,627
36,033
2,475
5,952
- 471
3,037
13,939
16, 724
1975
estimate
Outlays
1976
estimate
1974
actual
1975
estimate
1976
estimate
831
347
68
13,815
11, 864
1, 783
103,042
1,956
12),361
30,302
2,518
2, III
11 , 340
977
4,377
43,565
4,219
743
-331
3,537
16,137
24, 154
8,325
625
205
66
3,329
9, 767
1,455
77,625
1,682
93, 735
4, 786
1, 779
1, 797
8,966
735
8, 104
35,993
2,308
2,030
-276
3,252
13,337
13, 742
. ........
736
306
76
7,440
13, 782
1,658
86, 795
1, 759
113, 951
50,961
3,915
2,099
19, 910
891
19, 147
39,696
3,579
4,246
-918
3,229
15,966
21,948
750
. .... . ...
744
308
109
4,607
8, 756
1,644
83,493
1,928
109,932
5,517
2,236
2,061
18,966
871
9, 142
39, 665
3,090
2,937
-1,008
3,207
15,445
15,935
700
882
342
76
6,610
9,662
1, 789
90, 775
2,005
118, 377
7,055
2,503
2,221
21,617
950
9,991
43,453
3,815
3,080
-476
~ , 498
15,576
16, 712
8,050
-3,319
- 6, 583
- 6,748
-4,070
- 7,769
- 5,000
-3,888
- 8,305
-8,000
-3,319
-6,583
-6,748
-4,070
-7,769
-5,000
-3,888
-8,305
- 8,000
313,861
395,082
385,848
268,392
313,446
349,372
- -
Memorandum:
Portion available through current action by Congress 4 • • • • • • . .
Portion available without current action by Congress ..........
Outlays from obligated balances ............................
Outlays from unobligated ba1ancess .........................
Deductions for offsetting receipts:
Intragovernmental transactions ...........................
Proprietary receipts from the pUblic. . . . . . . . . . . . . . . . . . . ....
Total budget authority and outlays ....................
201,994
150, 185
. ,. .......
. . .. . . . . .
264,295
174,511
. .........
..........
253,297
181,936
. .........
. .........
117,831
76,484
60,820
51,573
140,560
91,128
68,548
56,933
159,546
106,076
77,253
55,882
-24,085
-14,232
-29,709
-14,015
-31,841
-17,544
-24,085
-14,232
-29,709
-14,015
-31,841
-17,544
313,861
395,082
385,848
268,392
313,446
349,372
Includes allowances for civilian and military pay raises for Department of Defense.
This agency, established by Public Law 93-438, assumed on Jan. 19, 1975, the energy research and development activities previously performed by the Atomic Energy Commission and several other agencies.
3 Includes allowances for energy tax equalization, payments, civilian a,gency pay raises, and contingencies.
• Budget authority excludes appropriations to liquidate contract authorizations. Outlays from such appropriations are included as outlays from balances below.
1
2
Table 6. OUTLAYS AND RECEIPTS OF TRUST FUNDS, 1974-76 (in millions of dollars)
Description
Outlays
1974
actual
1975
estimate
Receipts
1976
estimate
1974
1975
actual
estimate
1976
estimate
Federal old-age and survivors and disability insurance trust funds ..
Health insurance trust funds ................................ .
State and local government fiscal assistance trust fund .......... .
Unemployment trust fund .................................. .
Railroad employees retirement funds. " ...................... .
Federal employees retirement funds .......................... .
Airport and airway trust funds .............................. .
Highway trust funds ....................................... .
Foreign military sales trust fund ............................. .
Veterans life insurance funds ............................... .
Other trust funds (nonrevolving) ............................. .
Trust revolving funds ...................................... .
55,867
11,348
6, 106
6, 149
2,675
5, 709
521
4,599
2,675
701
531
-499
64,491
13,903
6,176
13,000
3,026
7,260
626
4,670
3,613
761
472
-842
71, 108
14,990
6,301
15,900
3,267
8,039
1, 126
5,002
4,869
772
497
-1,091
57, 703
15, 419
6,055
7,483
2, 61 .9
9,032
868
6,675
3, 167
847
526
.........
66,093
16, 777
6,205
9, 782
2,810
11, 143
1,034
6,416
3,892
870
478
.. . ... . . . .
70, 188
18,573
6,355
9, 760
3,232
11, 908
1, 134
6,664
4,669
912
470
. .........
Subtotal ...................................... . ..... .
Intrafund transactions ...................................... .
Proprietary receipts from the public .......................... .
Receipts from off-budget Federal agencies ..................... .
96,382
-952
-3,954
-642
117,155
-999
-4,708
-1, 110
130, 781
-1,052
-5,525
-779
110, 395
-952
-3,954
-642
125,499
-999
-4,708
-1, 110
133,866
-1,052
-5,525
-779
Total ................................................ .
90,833
110,338
123,425
104,846
118,681
126,510
t
U1
(X)
Table 7. COMPOSITION OF BUDGET OUTLAYS IN CONSTANT (FISCAL YEAR 1969) PRICES: 1955-76
[in billions of dollars]
Addendum: Composition of payments for
individuals
Nondefense
Fiscal year
1955 ..................................
1956 .................................
1957 ..... . ...........................
1958 .................................
1959 ..................................
1960 .................................
1961 ................................
1962 .................................
1963 .................................
1964 .................................
1965 .................................
1966 .................................
1967 .................................
1968 .................................
1969 .................................
1970 .................................
1971 .................................
1972 .................................
1973 .................................
1974 .................................
1975 estimate .........................
1976 estimate .........................
Total
outlays
109. 1
107.5
110. 2
114.0
122. 9
120. 3
124.8
135.8
138. 7
143.4
139.2
152.8
173.4
189.6
184.5
180.8
181. 6
191. 2
191. 7
189. 7
199. 1
202. 7
National
defense
60. 7
57.9
58. 1
58.0
58.4
56.9
57.2
62.0
62. 7
62. 1
55. 3
61. 7
74.5
83. 1
80.2
72. 3
63.8
61. 2
54. 9
52. 7
50.9
51. 0
Payments
Total
nondefense
for
individuals
48.4
49.6
52. 1
56.0
64.5
63.4
67.6
73.8
76.0
81. 4
84.0
91. 2
98.9
106.5
104.3
108.5
117. 7
130.0
136.9
137.0
148.2
151. 7
17.2
18.2
20.0
24. 1
26.4
27.5
30. 7
31. 8
33.8
34.4
34. 7
38.0
43.3
47. 7
52.5
56. 1
66.4
73.3
79.3
84.3
93.8
95.3
Net
interest
14.3
13. 7
13.0
13.0
13.2
13. 1
13.0
13.4
13.6
13.5
.13. 5
13.4
13. 1
13.8
12. 7
12.3
12.5
12.8
13.0
12. 1
12.2
13.0
All
other
16.9
17.7
19. 1
18.9
25.0
22.8
23.9
28.5
28.6
33.4
35.8
39. 7
42.4
45.0
39.2
40. 1
38.9
43.9
44.5
40. 7
42. 1
43.4
Direct
Total
17.7
18.9
20. 7
24.8
27. 1
28.3
31. 6
32.9
35.0
35.8
36.3
39.8
45.3
49.9
54.9
58.8
69.4
76.6
83.0
88.2
98. 1
99.6
National
defense
·6
·6
·7
·7
.8
.8
·9
1. 1
1.2
1.4
1.6
1.8
2.0
2.2
2.4
2. 7
3.0
3.4
3. 7
3.9
4.3
4.3
Nondefense
14.9
15.9
17.6
21. 3
23.4
24.5
27.5
28.2
30.0
30.3
30.5
33.3
38.2
41. 4
45.4
48. 1
55.9
60. 7
67.2
72. 1
82.0
84.0
Indirect
(through
State and
local governments)
2.2
2.3
2.4
2. 7
2.9
3.0
3.2
3.6
3.8
4. 1
4.2
4.8
5.2
6.3
7. 1
8.0
10.5
12.6
12. 1
12.2
11. 9
11. 3
Table 8. FEDERAL FINANCES AND THE GROSS NATIONAL PRODUcr, 1954-76 (dollar amount. in billions)
Fiscal year
1954 ......................................................................
1955 ......................................................................
1956 ......................................................................
1957 ......................................................................
1958 ...................................... . .................. . ..........
1959 . "..................................................................
1960 ......................................................................
1961 ......................................................................
1962 ........................................................ . ............
1963 ......................................................................
1964 ......................................................................
1965 .............................................................
1966 ............................ . ......
1967 ...................................
1968 ...................................
1969 ...................................
1970 ...................................
1971 ...................................
1972 ...................................
1973 ...................................
1974. . . . . . . . . . . . . . .
1975 estimate ...........................
1976 estimate ...........................
.1
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Budget receipts
Gross
national
product
Amount
Percent
of GNP
362. 1
378.6
409.4
431.3
440.3
469. 1
495. 2
506. 5
542. 1
573.4
612.2
654.2
721.2
769.8
826.0
898.3
954.6
1, 012. 1
1, 101. 6
1, 224. 1
1, 348. 9
1,434.0
1, 596. 0
69. 7
65.5
74.5
80.0
79.6
79.2
92. 5
94.4
99. 7
106.6
112.7
116.8
130.9
149.6
153. 7
187.8
193.7
188.4
208.6
232.2
264.9
278.8
297.5
19. 3
17. 3
18.2
18.5
18. 1
16.9
18. 7
18.6
18.4
18.6
18.4
17. 9
18. 1
19.4
18.6
20.9
20.3
18.6
18.9
19.0
19.6
19.4
18.6
Federal debt, end of year
Budget outlays
Amount ·
70.9
68.5
70.5
76. 7
82.6
92. 1
92.2
97.8
106.8
Ill. 3
118.6
118.4134. 7
158.3
178.8
184.5
196.6
211. 4
231.9
246.5
268.4
313.4
349.4
Held by the pubUc
Total
Percent
of GNP
Amount
Percent
of GNP
19. 6
18. 1
17.2
17.8
18.8
19. 6
18.6
19.3
19.7
19.4
19.4
18. 1
18. 7
20.6
21. 6
20.5
20.6
20.9
21. 0
20. 1
19.9
21. 9
21. 9
270.8
274.4
272.8
272.4
279. 7
287.8
290.9
292.9
303.3
310.8
316.8
323.2
329.5
341.3
369.8
367. 1
382.6
4Q9.5
437.3
468.4
486.2
538.5
605.9
74.8
72.5
66.6
63. 1
63.5
61. 3
58. 7
57.8
55.9
54.2
51. 7
49.4
45. 7
44.3
44.8
4Q.9
4Q. 1
4Q.5
39. 7
38.3
36.0
37.6
38.0
Amount
224.5
226.6
222.2
219.4
226.4
235.0
237.2
238.6
248.4
254.5
257.6
261.6
264. 7
267.5
290.6
279.5
284.9
304.3
323.8
343.0
346. 1
389.6
453. 1
Percent
of ONP
62.0
59.9
54.3
50.9
51. 4
50. 1
47.9
47. 1
45.8
44.4
42. 1
40.0
36. 7
34.8
35.2
31. 1
29.8
30. 1
29.4
28.0
25. 7
27.2
28.4
Table !JI. SUMMARY OF FULL-TIME PERMANENT CIVILIAN EMPLOYMENT
IN THE EXECUTIVE BRANCH
As of June 30 I
Agency
1975 estimate
1974
actual
Current
1976
estimate
Change
1975-76
79, 621
28,549
80,200
29, 100
80,200
28, 700
81, 100
28,600
900
-100
973, 778
29,072
995,900
29, 100
960,800
29,300
953,300
28,800
-7,500
-500
126,692
126, 200
127, 300
128,300
1,000
15, 021
56,558
48, 188
12, 788
22,644
69,524
104,391
14,200
56, 100
51, 000
13,000
23,400
71, 300
111,400
15,200
57, 900
49,900
13, 600
23,200
69,900
109,000
15, 200
58,800
50,800
13, 700
23,300
72,000
112, 500
900
900
100
100
2, 100
3,500
6, 736
6, 900
7,400
7,600
200
9,144
9,200
9,200
9,300
100
36, 733
38,000
36,400
36, 700
300
24,854
24,600
24,300
24,300
. . .. . . . . .
174,515
181, 800
186,200
195,700
9,500
8,961
9,500
8, 700
8,500
-200
6, 190
6,300
6,400
6, 700
300
2,002
3, 300
3, 100
1,700
-1,400
1, 538
13, 841
1,900
14, 100
2, 100
13,800
2,300
13,800
200
·... ... ..
2,333
2,200
2,200
1, 700
-500
3,957
4,300
4,200
4,200
· . .. . . . . .
14,001
14,400
14, 100
15, 100
1,000
8,829
35,844
9, 100
36,600
9,000
38,600
9,000
39,600
·........
Subtotal ...... .
. 3 ...... .
·
C ontIngencies
1, 916, 304
1,930,700
1, 942, 600
5,000
11, 900
.........
1, 963, 100
5,000
Subtotal ...... .
.
P osta1 ~)erVIce.. ..... .
1, 916, 304
563,475
1, 968, 100
534, 700
1,930,700 1,947,600
541,200
556,800
16,900
-15,600
'fotal. . . . . . . . ..
2, 479, 779
2, 502, 800
2, 487, 500
Agricull:ure. . . . . . . . . . .
Commerce .......... .
Defense-military functions ............. .
Defense'-civil functions
Health, Education, and
Welfare ........ ... .
Housin!~
and Urban
Developmen t ...... .
. 2 ........... .
I nterior
Justice ............. .
Labor ....... '...... . .
State .... .. ......... .
Transporta tion. . . . . ..
Treasury ...... . . .... .
Energy ' Research and
Development Admin•
.
2
Istrat]on
......... .
Environmental Protection }\.gency. . . . . . . .
General Services Administration ....... .
Aeronautics
N ationa.l
and Space Administration ........... .
Veteran s Administration. , ............ .
Other:
Agency for In tern ational
Developme:nt ........... .
Civil Service CommISSIon ......... .
Federal Energy Ad••
•
2
mInIstratIon
... . .
Nuclear Regulatory
. . 2 .... .
C ommisSIon
Panama Canal .... .
Selective Service Systera ............ .
Small Business Administration .... . .
Tennessee Valley Authority ...... ... .
Unit,ed States Informa.tion Agency ...
Miscellaneous. . . . . . . .
In 1975
budget
(~
2, 488, 800
1,000
5,000
1,300
1 Excludes developmental positions under the worker-trainee opportunity program and certain disadvantaged youth programs.
S Adjusted for comparability purposes to reflect the change from the Atomic Energy Commission to the
Energy Hesearch and Development Administration and the Nuclear Regulatory Commission, both of
which WBre activated January 19, 1975. Positions Were transferred from the Atomic Energy Commission
and the Department of the Interior to staff these neW agencies.
I SubJe~t to later distribution.
60
Table 10. BUDGET OUTLAYS AND AUTHORITY FOR THE TRANSITION
QUARTER BY FUNCTION AND BY AGENCY (in millions of dollars)
Outlays
Budget
authority ·
Function:
National defense 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
International affairs ... . ............................. .
General science, space, and technology ................. .
Natural resources, environment, and energy. . .. . ...... .
Agricul ture. . .. .........................' ...........
Commerce and transportation ........................ .
Community and regional development ................. .
Education, manpower, and social services. . .. . ........ .
Health ............................................ .
Income security ..................................... .
Veterans benefits and services ......................... .
Law enforcement and justice ......................... .
General government ................................. .
Reven ue sharing and general purpose fiscal assistance. . . ..
Interest ............................................ .
Allowances 2 • • • • . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed offsetting receipts:
Employer share, employee retirement ................ .
Interest received by trust funds ..................... .
Rents and royalties on the Outer Continental Shelf ..... .
25, 753
1,590
1,233
3, 148
445
3,535
1,558
3,021
7, 183
31,170
3,906
932
830
1,952
9,307
2, 100
25,245
1, 297
1,239
2, 189
299
1,947
498
4,821
7, 738
27,602
3,942
809
834
1,957
9,307
1,880
-974
-679
-1, 750
-974
-679
-1,750
Total outlays ................................... .
94,261
88,200
Agency:
Legislative branch .................................. .
The Judiciary ............... .. ..................... .
Executive Office of the President. ..................... .
Funds appropriated to the President ................... .
Agricul ture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commerce ......................................... .
Defense-Military 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Defense-Civil. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health, Education, and Welfare ....................... .
Housing and Urban Development ..................... .
Interior ............................................ .
Justice ............................................ .
Labor ............................................. .
State .............................................. .
Transportation ..................................... .
Treasury .......................................... .
Energy Research and Development Administration ..... .
Environmental Protection Agency ..................... .
General Services Administration ...................... .
National Aeronautics and Space Administration ......... .
Veterans Administration ............................. .
Other independent agencies .......................... .
Allowances 2 • • • • • . • • • . • • • • • . • . • • • • • • • • • . • . • • • • • • • • • •
Undistributed offsetting receipts:
Employer share, employee retirement ................ .
Interest received by trust funds ..................... .
Rents and royalties on the Outer Continental Shelf. .... .
Total budget authority and outlays .............. .
--
-----
226
90
17
1,481
2,649
451
25,035
619
31,543
1,905
826
644
4,405
371
2,642
11,654
1, 138
968
-128
906
3,896
4,226
2,100
205
84
16
1,553
2,392
422
23,986
584
32,529
341
807
541
3, 754
420
995
11,675
1,207
172
-106
958
3,936
3,253
1,880
-974
-679
-1,750
-974
-679
-1,750
94,261
88,200
1 Includes
2 Includes
allowances for civilian and military pay raises for Department of Defense.
allowances for energy tax equalization payments, civilian agency pay raises, and (for outlays)
contingencies.
61
\
Table ll. BUDGET RECEIPTS AND OUTLAYS, 1789-1976 (in millions of dollar.)
62
GLOSSARY
AUTHORIZATION-Basic substantive legislation (as opposed to appropriations) enacted by Congress which sets up a Federal program or
agency either indefinitely or for a given period of time. Such legislation
sometimes sets limits on the amount that can subsequently be appropriated, but does not usually provide budget authority.
BUDGET AUTHORITY (BA)-Authority provided by the Congress,
mainly in the fonn of appropriations, that allows Federal agencies
to incur obligations to spend or lend money. Most budget authority is
enacted each year. Some budget authority becomes available automatically under permanent laws, such as the authority to pay interest
on the public debt.
BUDGET RECEIPTS-Money, net of refunds, collected because of the
sovereign or other compulsory powers of the Government, net of refunds. Income from strictly business-type transactions (such as sales,
interest, or loans), are against outlays rather than being counted as
budget receipts. (See offsetting receipts. )
BUDGET SURPLUS OR DEFICIT-The difference between ·b udget receipts and outlays.
DEFE·R RAL-Any executive branch action or inaction which delays the
availability of budget authority for obligation. Deferrals may not extend beyond the end of the fiscal year and may be overturned at any
time by either House of Congress.
FEDERAL FUNDS--Funds collected and used by the Federal Government
for the general purposes of the Government. The major federally
owned fund is the general fund, which is derived from general taxes
and borrowing and is used for the general purposes of the Government. Federal funds also include certain earmarked receipts, such as those
generated by and used for the operations of Government-owned
en terprises.
FISCAL YEAR-Year running from July 1 to June 30 for fiscal year 1976.
All subsequent fiscal years will begin October 1 and end September 30.
The fiscal year is designated by the calendar year in which it ends.
IMPOUNDMENT-A general term that refers to the withholding of
budget authority from obligation, that is, rescissions or deferrals.
INTERFUND TRANSACTIONS-A subcategory of intragovemmental
receipts (see offsetting receipts) that includes all payments from the
Federal fund group to trust funds or vice versa. These are shown as
payments by one fund group and receipts by the other and are included
as receipts and outlays of the appropriate fund group. Such transactions
are deducted prior to striking a budget total to avoid double counting.
63
OBLI(}ATIONS-Contracts and other binding commitments made by Federal agencies to payout money for products, services, or other purposes-as distinct from the actual payments. Obligations incurred may
not be larger than budget au thori ty.
OFFSJETTING RECEIPTS-Composed of ( 1) proprietary receipts from
the public derived from Government activities of a business-type or
market-oriented nature that are offset against related budget authority
and outlays; and (2) intragovernmental transactions. Intragovernmental transactions are paYluents frem governmental accounts to budgetary receipt accounts. Since these payments are from the Government
to' itself, they are offset against outlays rather than being counted as
budget receipts.
OUTI.JAYS-Checks issued, interest accrued on the public debt, or other
payments made, net of refunds and reimbursements.
RESCISSION-Enacted legislation canceling budget authority previously
granted by Congress. Rescissions proposed by the President must be
approved by the Congress vvithin 45 days in order to become effective.
RESE][tVES-Portions of appropriations, fund or contract authority set
aside under authority of law for (a) contingencies or "(b) savings.
TOTPlL OBLIGATIONAL AUTHORITY ( TO ~A.)-The sum of budget
authority granted or -requested from the Congress in a given year, plus
unused budget authority from prior years.
TRUST FUNDS-Established to account for receipt and expenditure
monies by the Government for use in carrying out specific purposes
and programs in accordance with the terms of a trust agreement or
statute. These monies receipts held in trust are not available for the
general purposes of the Government. Trust fund receipts which are not
anticipated to be used in the immediate future are gene(ally invested
in Government securities and earn interest.
UNDISTRIBUTED OFFSETTING RECEIPTS-Composed of (1) payments to trust funds by Government agencies, as employer, for their
ernployees' retirement; (2 ) interest paid to trust funds on their inves,t ments in Government securities; and (3 ) proprietary receipts from
rents and royalties on the Outer Continental Shelf bonds.
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64
THE BUDGET DOCUMENTS
Data and analyses relating to the budget for 1976 are published in four.
documents.
(1) The Budget of the United States Government., 1976 contains the
information that most users of the budget would normally need, including
the Budget Message of the President. The Budget presents an overview of the
President's budget proposals which includes explanations of spending progra:qls, estimated receipts, and the relationship of the budget to the economy.
T1his document also contains a description of the budget system, various summary tables on the budget as a whole, and information on the transition
quarter.
(2) The Budget of the United States Government, 1976-Appendix contains detailed information ·on the various appropriations and funds which
comprise the budget.
The Appendix contains more detailed information than any of the other
budget documents. It includes for each agency: the proposed wording of
laws which would appropriate funds, budget tables for each account, explanations of the work to be performed and the funds needed, proposed general
provisions a·p plicable to the appropriations of entire agencies or groups of
agencies, and tables on employment. Supplemental proposals for the current
year and new legislative proposals are identified separately. Information is
also provided on certain activities, whose outlays are not part of the budget
totals.
(3) Special Analyses., Budget of the United States Government, 1976 contains 17 special analyses which highlight specified program areas or provide other significant presentations of Federal data.
This document includes information about: Government finances and
operations as a whole and how they affect the economy; education, manpower, health, income security, civil rights, and crime reduction programs;
trends and developments in the areas of Federal aid to State and local governments, research and development, and environmental protection.
( 4) The United States Budget in Brief., 1976 provides a more conci~e;
less technical overview of the 1976 budget than the above volumes, and
includes a variety of charts. Summary and historical tables on the Federal
budget and debt are also provided.
@FedFRASER