Full text of Budget in Brief : Fiscal Year 1979
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FISCAL YEAR
TABLE OF. CONTENTS
Page
I.
II.
III.
IV.
V.
THE PRESIDENT'S BUDGET MESSAGE .............. .
BUDGET RECEIPTS ... , ........ '...................... .
THE LON'G -RANGE OUTLOOK AND CURRENT SERVICES ESTIMA'rES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MEETING NATIONAL N~EDS: THE FEDERAL PROGRAM BY FUNCTION ............................ .
National defense ....................................... .
International affairs .................................... .
General science, space, and technology .................... .
Energy .................. ' .............................. .
Natural resources and environment ....................... .
Agricul ture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commerce and housing credit. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transportation ........................................ .
Community and regional development .................... .
Education ............................................. .
Training, employment, and social services ................. .
Heal th . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income security. . . . . . . . . . . . . . . . . . . . . . . . . . . . ~ . . . . . . . . . . .
Veterans benefits and services .................. ',' ........ .
. . t ra t'Ion 0 f'JUS t'Ice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ad mInIS
General govern men t. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General purpose fiscal assistance. . . . . . . . . . . . . . . . . . . . . . . . . .
In terest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .'. . . . . .
THE BUDGET PROCESS ............................. .
BUDGET TABLES ................................... .
GLOSSARY OF BUDGET TERMS ..................... .
3
9
15
25
27
29
32
33
38
41
42
44
46
48
50
52
56
59
61
62
63
65
66
67
72
90
GENERAL NOTES
1. All years referred to are fiscal years, unless otherwise noted.
2. Detail in the tables, text, and charts of this volume may not add to the
totals because of rounding.
1
Budget Totals Since 1977
$ Billions
$ Billions
600~--------------------~~~~------~600
Receipts
500.2
500
500
Outlays
400
400
300
300
200
200
100
100
0 .....-
----0
1977
1978
1979
Fiscal Years
Estimate
Federal Budget Outlays, 1950 - 1979
$ Billions
$ Billions
500
500
400
Constant 1979 Dollars ~
400
300
300
200
200
100
~ Current Dollars
100
O~----------~~.-----------------------O
1950
55
60
65
70
75
79
Fiscal Years
2
Estimate
BUD.G ET MESSAGE OF THE PRESIDENT
To the Congress of the United States:
The first complete 'budget of any new administration is its most
important. It is the administration's first full statement of its priorities, policies, and proposals for meeting our national needs.
Last February, after just one month in office, I submitted a revised budget to the Congress. That revision changed the direction
of the prior administration's budget, but was-of necessitybased upon a review of limited scope. I promised then that future
budgets would reflect detail~d, zero-based reviews of Federal
sp~nding programs, reform of the tax system, and reorganization
of the Government. This budget is my first major step in meeting
that promise. It reflects, I believe, a determination to face and
make difficult decisions in a manner that places the common
good above that of any particular int<:;rest.
This budget represents a careful balancing of several consider•
atlons:
--.:The importance of a fiscal policy that provides for a continuing recovery of the Nation's economy;
-The obligation of the Government to meet the critical needs
of the Nation and its- people;
-The fact that resources are limited and that Government
must discipline its choices and its scope; and
-The need for careful and prudent management of the taxpayers' resources.
THE BUDGET TOTALS
[In billions of doilars]
1977
actual
197R
estimate
1979
estimate'
Budget receipts .................... .' .......... .
Budget outlays . .' .. " ........................... .
357
402
400
462
440
Deficit ( - ) ................................. .
-45
-62
-61
Budget authority ....................... .
465.2
502.9
568.2
500
My budget provides for total outlays of $500 billion, an increase
of $38 billion, or 8%, over the 1978 budget, and receipts of $440
billion. This budget total is a restrained one that:
3
-Meets essential national needs;
-Places careful priorities upon Federal expenditures; and
-Decreases the share of the Nation's gross national product
taken by the Federal Government from 22.6% to 22.0%.
This budget places us on a path that will permit a balanced
budget in the future if the private economy continues its recovery
over the coming years.
At the same time, my budget embodies a fiscal policy that will
strengthen the economic recovery. I propose a progressive tax
reduction of $25 billion to help assure continued economic
recovery and reduction in unemployment. An integral part of
this tax reduction proposal is a set of recommendations for tax
reform that will make the tax system simpler and more equitable.
Without the reduction, I would have been able to anno'u nce a
decline in the deficit of $15 to $20 billion between 1978 and 1979.
With the reduction, the budget deficit will still decline slightly,
because of careful restraints on expenditures. But I judged that
the most important priority this year was to reduce the burdens
on taxpayers. Only in this way can we ensure a vigorous economy,
a declining unemployment rate, a strong expansion of private
, investment, and a stable budget balance in future years.
While the expenditures I recommend in this budget are
restrained, they are, nevertheless, directed toward overcoming
our Nation's crucial problems. I have looked carefully at existing
approaches to these problems and improved those approaches
where possible. The spending priorities of the past are now being
shifted toward long-neglected areas. These new priorities are
based on the following judgments:
-An effective national energy plan is essential to reduce our
increasingly critical dependence upon diminishing supplies
of oil and gas, to encourage conservation of scarce energy
resources, to stimulate conversion to more abundant fuels,
and to reduce our large trade deficit.
The national energy plan I proposed last spring defined these
goals. This budget includes the programs and initiatives designed
to meet those objectives. Included are increased emphases on
conservation and nonnuclear research and development, energy
grants and technical assistance to States and localities, accelerated acquisition of the strategic petroleum reserve, and greater
emphasis on nuclear waste management. I continue in the
unswerving belief that the Nation's leaders have the obligation
4
to plan for the future, and that the national energy plan is essential to the future health and vigor of the American economy. The
United States also must take the lead in minimizing the risks of
nuclear weapons proliferation as we advance nuclear power
technology. Thus, this budget increases research and development funding for systems that present fewer risks than the plutonium-fueled liquid metal fast breeder reactor .
...:.-T he essential human needs of our citizens must be given high
priority.
In the spring of 1977 I proposed a long-overdue refonn of the
Nation's welfare system. This reform recognizes that this is a
Nation of men and women who do not wish to be wards of the
Government but who want to work and to be self-sufficient. It
includes a combination of employment opportunities and incentives for those who should work, and a basic income for those
who cannot. This budget anticipates that Congress will pass
the program for 'better jobs and income, and begins the process
of careful planning for the implementation of an efficient and
equitable system.
The budget also recognizes that ensuring the opportunity to
compete and excel remains very important to our people~ To give
all children the healthiest possible start in life, I propose a
major expansion of medical care and nutritional supplements
for low-income expectant mothers and infants. In addition, I
propose major increases in educational assistance at all levels.
Because of the continued high level of unemployment, particularly among minorities, I believe public employment programs
should be continued at high levels for another year. Major increases in programs stressing employment for unemployed youth
are recommended. A new effort will be mounted to 'place more
disadvantaged persons in private sector jobs by increasing the
involvement of the business community in local employment and
training programs.
I view a workaqle urban 's trategy as an important link in a wellarticulated domestic program and essential to the continuing
recovery of the national economy. This budget includes increases
for many programs benefiting urban areas and supports several
efforts to improve these programs. I anticipate sending to the
Congress early in the spring a set of further proposals dealing
with the Nation's urban problems.
5
-The Nation's armed forces must always stand sufficiently
strong to deter aggression and to assure our security.
My request for defense provides for the steady modernization
of our strategic forces, and for substantial improvements in the
combat readiness of our tactical forces. To parallel commitments
made by our European allies, I am proposing significant increases
in our overall defense effort, with special emphasis on those forces
and capabilities most directly related to our NATO commitments. The defense budget I recommend also emphasizes
modernization and research and development to meet future
challenges to our security. But at the same time, I am restraining
defense expenditures by introducing important efficiencies and by
placing careful priorities upon our defense needs. The 1979
defense budget is prudent and tight, but consists of a real growth
in ol1tlays of three percent above the current year's budget. It is
$8 billion below the defense budget projected for 1979 by the
previous administration.
-The Federal G,o vernment has an obligation to nurture and
protect our environment-the common resource, birthright
and sustenance of the American people.
This budget provides for substantially increased emphasis on
protection of all our environmental resources, for new attention
to our common heritage, and for substantial additions to our
system of public lands. Planned use of our natural resources has
been designed so that the most important of our unspoiled areas
can remain forever in the hands of the people.
-The Federal Government must lead the way in investing in
the Nation's technological future.
Shortly after taking office, I determined that investment in
basic research on the part of the Federal Government had fallen
far too low over the past decade. Accordingly, I directed that a
careful review be undertaken of appropriate basic research opportunities. As a result of that review, this budget proposes a real
rate of growth of almost 5% for basic research in 1979. I believe
this emphasis is important to the continued vitality of our
economy.
This budget also reflects this Administration's commitment to
two important approaches to making government work more
efficiently and responsively: reorganization and zero-base
budgeting.
The reorganization effort I have launched seeks more than just
a streamlining of organization strQcture and the elimination of
6
.overlaps and duplication. It seeks to make our Government more
responsive, more efficient, and more clearly focussed on the most
pressing needs of our society. In 1977 I proposed-and the ~on
gress accepted--a Cabinet-level Departm~nt of Energy, a streamlined Executive Office of the President, and a consolidation of
our international information activities. In 1978 I will propose
further reorganizations in such areas as the Federal Government's
civil rights activities and the Federal civil service system to make
it more responsive and effective.
As I promised during my campaign, zero-base budgeting systems have been applied throughout the Federal Government.
This budget is the product of a comprehensive zero-base review
of all Federal programs, both existing and new programs. In
reviewing each agency's proposals, I have used zero-base budget
alternatives and agency rankings to compare and evaluate the
many requests competing for resources. As a result of the first
year's effort, we have gained a better understanding of Federal
programs and .have made better, more even-handed judgments.
Because of this system the budget includes significant dollar savings and improvements in the way programs are operated. With
experience, zero-base budgeting should be even more effective in
future years.
.
Other significant changes in the budget process are reflected
in this document. First: I have directed the Office of Management and Budget to establish a multi-year budget planning system
using long-range budget projections. This will ensure that budget
decisions are made with full awareness of their longer range
implications. Second: we are using better techniques for estimating outlays so as to avoid the chronic "shortfalls" of recent years.
Third: we have explicitly related the classification of the budget
in terms of functions performed by Government programs to the
national needs and agency missions served, as called for in the
Congressional Budget Act of 1974.
. In formulating this budget I have been made acutely aware
'once more of the overwhelming number of demands upon the
budget and of the finite nature of our. resources. Public needs are
critically important; but pr~vate needs are equally valid, and the
only resources the Government has are those it collects from the
taxpayer. The competition for these resources and my belief and
commitment that we must firmly limit what the Government
taxes and expends have led me to the premises on which my first
budget is based.
7
- "Critical national needs exist-particularly human and social
ones-to which resources must be directed.
-Government resources are scarce; their use must be planned
with the full awareness that they come from the earnings
of workers and profits of business firms.
--The span of government is not infinite. Priorities must be set
and some priorities reordered. If we are to meet adequately
the most critical needs, some demands must also be deferred.
Government action must be limited to those areas where its
intervention is more likely to solve problems than to compound them.
-We have an obligation to manage with excellence, and to
maintain proper priorities within the $500 billion proposed
in this budget. We all know that in a budget of this scalelarger than the gross national product of all but three nations
in the world-there are dollars wasted arid dollars misspent.
These must be minimal.
These premises are unexceptionable in general, but difficult
and controversial to apply. They have guided my actions in
formulating this budget and they will continue to do so in the
future. But to be successful I will need, and will work for, the
help and cooperation of the Congress. Both the Congress and the
Executive have a clear, joint interest in an approach that helps
us to meet the demands of the future. In recent years the Congress has taken important steps-through the establishment of
the congressional budget process-to improve its own means of
establishing priorities. This administration has worked closely
with the congressional appropriations and budget committees
and has found them invaluable sources of advice. We will continue in this spirit of cooperation, and I look forward to working
with the Congress and its leadership to obtain adoption of my
budget for fiscal year 1979.
JIMMY CARTER
JANUARY
8
20, 1978.
PART I
BUDGET RECEIPTS
This section discusses the major sources of budget receipts for
1977 to 1980 · and the legislative proposals affecting th.em. The
economic forecast underlying the estimates through calendar year
1979 is presented in Part II. Longer range economic assumptions and estimates of receipts are also presented in Part II.
Budget receipts in 1979 are estimated to be $440 billion, 1070
more than the $400 billion estimated for 1978. Almost 90% of
these receipts result from individual and corporation income
ta~es and from payroll taxes levied on wages and salaries.
Enacted Tax Changes
Individual and corporation income taxes.-In the last 3 years,
four major laws have changed individual and corporation income
taxes. The first was the Tax Reduction Act of 1975, which provided a partial rebate of calendar year 1974 individual income
tax liabilities, a number of temporary reductions in individual
and corporaton income tax liabilities (generally applicable to
calendar year 1975), and a few permanent changes in the tax
structur~. The Revenue Adjustment Act of 1975, enacted later
the same year, provided tax reductions for the first 6 months of
calendar year 1976. For corporations, the act extended the temporary rate reductions enacted in the Tax Reduction Act. For
individuals, however, larger temporary reductions were enacted.
The third major act affecting individual and corporation income
taxes (as well as estate and gift taxes) was the Tax Reform Act
of 1976. This act extended some temporary provisions scheduled
to expire and made others permanent. It also included a number
of major tax reforms and other changes. Finally, the Tax Reduction and Simplification Act of 1977 extended for 1 year the temporary provisions of the Tax Reform Act that were scheduled to
expire December 31,1977. In addition, it made two major tax
changes and a number of other reforms and simplifications. The
rna jor changes were:
-Replacing the minimum standard deduction and the percentage standard deduction with a flat standard deduction.
-Enactment of a temporary jobs tax credit applicable to
calendar years 1977 and 1978 to stimulate private sector
employment.
The following table shows the effect of these four acts on receipts for the years 1975-80. It also shows the effect on receipts
in 1979 and 1980 of extendiIlg most of the temporary features of
the 1977 act.
EFFECT OF ENACTED INCOME TAX LEGISLATION
[In billions of dollars]
Legislation
1975
1976
Tax Reduction Act of 1975 ... -10.2 -10.8
Revenue Adjustment Act of
1975 ................... . · . . . . -6.0
Tax Reform Act of 1976 1 . . . . · . . . . . . . . .
Tax Reduction and Simplification Act of 1977 ......... . · . . . . · . . . .
Total. . . . . . . . . . . . . ..
-10. 2 -16. 7
TQ
-.3
1977
.4
1978
2.8 '
-.5 -1.8
-*
-2.8 -14.4 -13.2
· . .. .
1979
3. 2
-*
1980
3.4
-7.4
-8.0
-2.6 -17.8 -13.7
-5.8
--- ---
-3. 6 -18. 5 -28.2 -17. 9 -10.3
)
Individual income taxes ..... .
Corporation income taxes ... .
Other .................... .
-9.4 -14. 1
-.8 -2.6
-3.2 -17.4 -24.2 -15.3
-. 4 - 2. 5 - 3. 1 - 1. 4
.....
1.4 -1.0 -1.2
-9.6
.9
-1.6
)
Addendum
Extension of temporary features of 1977 act: 2
Individual income taxes ....
Corporation income taxes ..
Total ............... .
2
·. · .. · · · · .. · · · · . · · · · .. · · · · .. · · -7.
1.
· ·- ·-· - 1
· ·· · · · · · · ·· ·· ·· ----· · . · · · · · · · · . · · · · · · · · · · -8. 3
- 12. 8
-2. 6
- 15. 4
*$50 million or less.
Includes the effect of interim legislation that extended individual income tax withholding rates and corporation income tax rate reductions from July 1, 1976, to October 4,1976, when the Tax Reform Act of 1976
was enacted.
2 Excludes extension of the jobs tax credit, which is a short-term countercyclical provision.
1
Social security taxes.-The recently enacted Social Security
Amendments of 1977 will raise social security taxes significantly.
These increases, which are in addition to increases already scheduled under prior law, were designed to place the social security
system on a sound financial basis .
. The table below shows the social security tax rate and taxable
earnings base scheduled under prior law and the corresponding
figures under the 1977 act. By 1981, the new legislation increases
the combined employer-employee tax rate by 0.7 ,p ercentage
points above what it otherwise would have been and increases
the taxable earnings base by $7,800. The 1977 act increases
receipts by $3.2 billion in 1979 and $8.8 billion in 1980.
10
SOCIAL SECURITY TAX RATE AND TAXABLE EARNINGS BASE
Calendar years
--
Before 1977 legislation:
Tax rate (percent) .................
Taxable earnings base (dollars) ......
After 1977 legislation:
Tax rate (percent) .......-... -.......
Taxable earnings base (dollars) ......
1977
1978
1979
1980
11. 7
16,500
12. 1
17, 700
12. 1
18,900
12. 1
20,400
12.6
21, 900
11. 7
16,500
12. 1
17, 700
12.26
22,900
12. 26
25,900
13. 3
29, 700
1981
Proposed Tax Changes
Income tax reductions and reforms.-The administration is
proposing major tax reductions, generally effective October 1,
1978, and tax reforms, generally effective January 1, 1979. These
proposals provide the economic stimulus to help maintain the
momentum of the current economic recovery. They take significant steps toward developing a simpler, more efficient, and more
equitable system and will reduce taxes for nearly all taxpayers,
particularly for low and moderate income families.
Major tax reductions for individuals will result from substitution of a $240 personal tax credit for the current $35 credit and
$750 exemption, and from reducing rates from the current range
of 14-707'0 to 12-68%. A number of proposed simplifications will
increase receipts, partially offsetting these reductions. They
include:
-Eliminating the deductions for State and local sales, gasoline,
personal property, and miscellaneous taxes.
-Combining the separate deductions for medical expenses
and uninsured casualty losses into a new "extraordinary expense" deduction available only to the extent that these items
together exceed 10% of adjusted gross income.
-Including unemployment compensation benefits in the adjusted gross income of taxpayers with incomes above specified levels.
-Restricting tax shelter investments.
-Increasing the tax base to which the minimum tax applies.
Major reductions in corporation income taxes will result from
proposed rate reductions and liberalization of the investment tax
credit. The corporation income tax rate would be reduced effective October 1, 1978, from 20% to 18% on the first $25,000 of
corporate income, from 22% to 20% on the second $25,000, and
from 48% to 45% on income above $50,000. Effective January 1,
11
_ 1980, the maximum corporate rate would be reduced to 44%.
The investment tax credit, which currently applies only to equipment, would be extended to structures (retroactively to January 1, 1978) and made permanent at the current 10% rate. The
credit would be allowed to offset up to 90ro of the tax liability
otherwise owed. Currently, the limit is 100% of the first $25,000
of tax liability and 50ro of liability above $25,000.
Partially offsetting the revenue losses from these provisions are
reform proposals that include:
-Phasing out the tax benefits for Domestic International Sales
Corporations over 3 years.
-Reducing by 50% the otherwise allowable deductions for
business meals and disallowing business deductions for
tickets to entertainment events, membership dues in clubs,
and the excess of first-class air tickets over the cost of coach
or second-class air tickets.
-Phasing out over 3 years the tax deferral for the income
of foreign subsidiaries of corporations controlled by U.S.
taxpayers.
Energy tax proposals.-The President's national energy plan
submitted to the Congress last spring contains tax proposals that
would provide.incentives to conserve energy and to convert energy
use away from oil and natural gas toward greater use of nonpetroleum-based fuels. The major proposals include:
-A crude oil equalization tax on existing domestic production
in order to raise the price of petroleum products to their
replacement value. Tax revenues would be refunded to
individuals on a per capita basis, either in the form of tax
refunds or direct payments.
•
-An oil and natural gas consumption tax on certain industrial
and utility use to accelerate the conversion to facilities that
use non-petroleum fuels.
-An auto efficiency ("gas guzzler") tax, which would be
refunded as subsidies for the purchase of fuel efficient
vehicles.
-Residential and business tax credits to promote investment
in more energy-efficient equipm~nt and materials.
Tax receipts generated from these proposals would generally
be returned to the economy through tax refunds and increased
Federal spending. The energy proposals reduce estimated receipts
by $0.1 billion in 1978 and increase receipts by $1.1 billion and
12
$2.9 billion in 1979 and 1980, respectively. The administration
expects that the Congress will enact energy legislation early in
1978. Changes from the administration's pro'posals could significantly change the estimates of receipts.
Other tax proposals.-A number of other tax proposals are
reflected in estimated receipts. These proposals include:
-repeal of the tax on telephone services, effective October 1,
1978;
-a reduction in the Federal unemployment insurance tax rate
from 0.7% to 0.5%, effective January 1,1979;
-user fees on commercial users of inland waterways to pay
for a substantial share of the costs of the facilities from which
they directly bear;
-a 2 percentage point reduction in the 8% passenger ticket
tax and the 5 % tax on airfreight;
-payments by the Federal Reserve System of interest on
member bank deposits, which will reduce miscellaneous
receipts; and
-an excise tax on imported oil to create a fund to pay damages
and cleanup costs resulting from oil pollution.
The effect of proposed legislation on receipts, both in comparison to current law and in comparison to extension of temporary tax provisions is shown in the following table.
EFFECT OF TAX PROPOSALS ON RECEIPTS
[In billions of dollars]
Source
1978
In comparison to curr
Individual income t
... .. ........ . .
Corporation income taxes ............ . .......... .
. 1 Insurance
.
taxes 1 ... . ...... . ....... . .. . ... .
SOCla
Excise taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .
Other receipts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Total!. . . . . . . . . . . . . . . . . . . . . . . . . . .
fi
•
•
•
•
•
•
•
•
•
In comparison to extension of temporary tax provisions: 2
Individual income taxes ............ . ........... . .
Corporation income taxes ................. . ..... .
. 1 Insurance
.
taxes 1 .......... . .............. .
SoCla
Excise taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other receipts . ..... .. ......................... .
Total
l .................................... .
1979
1980
·......
-31. 1
-7.5
-.6
6.8
- .2
-39.3
-11. 2
.2
16. 6
-.5
-.4
-32.6
-34.2
-1.7
-.6
· . . ... .
-23.9
-6.4
-.6
6.8
-.2
-26.5
-8.6
.2
12. 1
-.5
-.4
-24.3
-23.3
-1.7
-.6
·......
1.8
---
·. . . .. .
1.8
1 The 1980 estiIl1ate includes the effect of acceleration of State and local deposits of social security taxes,
which can be accomplished by administrative action.
2 Excludes extension of the jobs tax credit, which is a short-tenn countercyclical provision.
13
RECEIPTS BY SOURCE
The table below shows budget receipts by source for 1977 to
1980; the estimates reflect recent changes in the tax structure and
the President's tax proposals discussed above.
Individual income tax receipts are estimated to be $190.1
billion in 1979, an increase of 6% from the 1978 estimate of
$178.8 billion. Corporation income taxes are estimated to be
$62.5 billion in 1979, compared to $58.9 billion in 1978. Together, these receipts are 570;0 of total receipts in 1979.
Social insurance taxes and contributions are estimated to be
$141.9 billion in 1979; an increase of 14% from the $124.1 billion
estimated for 1978. These receipts include social security taxes,
unemployment insurance taxes, Federal employee retirement
contributions, and premium payments for supplementary medical
•
Insurance.
Excise taxes ate estimated to be $25.5 billion in 1979, an
increase of $5.3 billion from the 1978 estimate of $20.2 billion.
This large increase is due to the administration's energy proposals. Other receipts, consisting of estate and gift taxes, customs,
and miscellaneous receipts, are estimated to be $19.7 billion in
1979.
BUDGET RECEIPTS BY SOURCE
[In billions of dollars]
Source
1977
actual
19i8
estimate
Individual income taxes .. .................
Corporation income taxes ............. ....
Social insurance taxes and contributions . ....
Excise taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other receipts ....................... ....
156. 7
54.9'
108. 7
17.5
19.0
178.8
58. 9
124. 1
20. 2
18. 3
Total .................... .........
356.9
400.4
14
19i9
estimate
1980
estimate
190. 1
62. 5
141. 9
25. 5
19.7
223.
69.
160.
31.
21.
439. 6
505.4
---
9
1
1
1
1
PART II
The Long-Range Outlook and Current
Services Estimates
This section discusses the long-range budget outlook and the
economic assumptions underlying that outlook. Current services estimates, which are based on the same economic assumptions, are also discussed.
ECONOMIC ASSUMPTIONS
Economic conditions significantly affect the budget, and the
budget, in turn, influences economic conditions. Both budget outlays an·d the tax structure have substantial effects on national output, employment, and in~ation. At the same time, outlays for
many Federal programs, such as unemployment compensation
and interest on the debt, are directly linked to developments
in the economy. In addition, budget receipts vary with individual
and corporate incomes and wages and salaries, all of which respond to both real economic growth and inflation.
Because of these co:r:nplex interrelationships between the
budget and the economy, budget estimates depend significantly
upon assumptions made about the economy. Therefore, the administration's economic assumptions are presented to assist in
understanding the budget estimates and long-range projections
and the fiscal strategy planned by the President .
. The short-range economic assumptions for calendar years 1977
(for which only three-quarters of actual data were available when
the forecast was made), 1978, and 1979 are forecasts of the probable economic conditions consistent with the administration's
budget proposals. In contrast, the longer range assumptions, for
the period 1980 to 1983" are not forecasts of probable economic
conditions. Instead, they are projections that assume progress
in moving toward the administration's goals of a more fully
employed economy and greater price level stability.
15
SHORT-RANGE ECONOMIC FORECAST
[Calendar years; dollar amounts in billions]
Item
Gross national product:
Curren t dollars. . . . . . . . . . . . . . . . . . . . . . . .
Constan t (1972) dollars:
Amount ............................
Percen t change. . . . . . . . . . . . . . . . . . . . . .
Price level (percent change):
GNP deflator 1 .. _. . . . • • • . . • • . . . . • • . • • . •
Consumer Price Index 2 • • • • • • • • • • • • • • • • •
Unemployment rate (percent) .............
1
2
Actual
1976
Forecast
1977
1978
1979
1, 706
1,890
2,099
2,335
1, 275
6.0
1, 337
4.9
1,400
4. 7
1,467
4.8
4. 7
4.8
7. 7
5.9
6. 9
7.0
6. 3
6. 1
6. 3
6.0
6.0
5.9
Percent change, fourth quarter over fourth quarter.
Percent change, December over December.
The administration will propose further fiscal actions-in particular, further tax reductions-during the 1980-83 period if such
actions are required to sustain the progress of the economy toward
these important goals.
LONG-RANGE BUDGET PROJECTIONS
The effects of current decisions extend beyond the budget year.
They establish program trends that have important influences on
the size and composition of budgets for years in the future. Just
as the composition and level of the 1979 budget have been largely
determined by past decisions, the decisions and proposals it embodies will affect subsequent budgets strongly.
Basic assumptions.-The receipts projections are consistent
with the foregoing economic assumptions and with continuation
of current tax laws as modified by the proposals contained in this
budget. The outlay projections indicate the degree to which resources would be committed during 1980-83 by the continuation
of program levels recommended for 1978 and 1979. Therefore,
these projections are not forecasts. Nor are the projections intended as recommendations as to future budget levels. Instead,
. they are most accurately read as indications of the degree to
\tvhich this and previous years' budget decisions commit us in the
future. However, in coming years, under the multiyear budget
planning system now being establisl;1ed by the administration, this
need no longer be the case. Future budget projections can in fact
represent tentative plans for the long-terln scheduling of major
16
-
new initiatives, program reductions or terminations, and major
tax law changes.
LONG-RANGE ECONOMIC ASSUMPTIONS
[Calendar years; dollar amounts in billions]
Item
Gross national product:
Curren t dollars ........................
Constant (1972) dollars:
AmouD t .......................... . .
Percen t change. . . . . . . . . . ..... ' .' . . . . .
Price level (percent change):
GNP deflator 1 ..••••••••.•...•••••••••
Consumer Price Index 2 • • • • • • • • • • • • • • • • •
Unemployment rate (percent) .............
1
2
Assumptions
1980
1981
1982
1983
,
2,587
2,858
3, 133
3,400
1, 537
4.8
1, 614
5.0
1,690
4. 7
1, 761
4.2
5.5
5.5
5.4
5.0
5.0
5.0
4.5
4.5
4.5
4.0
4.0
4. 1
\
Percent change, fourth quarter over fourth quarter.
Percent change, December over December.
These projections provide for future cost-of-living adjustments
to most benefit programs, for Federal pay raises, and for other
built-in cost increases (such as interest) consistent with the economic assumptions outlined above. In gen~ral, the outlay projections assume that programs remain level in dollar terms except
where there is a change in the number of people due to receive
payments or where there 'is an explicit budget plan to change
program levels over time.
The budget outlook.-The following table summarizes the
budget outlook from 1977 to 1983 based on current administra. tion policy and on the economic assumptions shown above.
Receipts are projected to increase by an average of 13% per
year from 1979 to 1983, rising from $440 billion to $726 billion.
Over the same period, outlays for current programs and those
proposed in this budget are projected to rise by an average
of 6.8% a year, from $500 billion to $650 billion. Thus, the
budget is projected under current administration policies to move
into surplus in 1981 with larger surpl~ses in subsequent years. The
administration intends to restrain outlays to the President's stated
limit of 21 % of GNP so that a balanced budget in 1981 is
achievable if the economy continues to recover along the path
assumed in the long-range economic assumptions. However, since
receipts depend directly upon economic performance, the goal
of a balanced budget would have to be deferred if the President
determined that the eco,n omy required further tax reductions.
260-400 0
17
78 - 3
THE BUDGET OUTLOOK, 1977-83 (in billions of dollars)
1977
Outlays under current programs ...................
Outlays under proposed legislation ...................
Total outlays .........
1978
1979
1980
1981
1982
1983
401. 9 461. 5 499.6 541.0 569. 1 604.2 641. 5
. .. ..
O. 7
401. 9 462.2
0.5
1.9
6. 3
8. 2
8.4
500.2 542.9 575.4 612.4 650.0
Receipts under current law ..
Effects of tax proposals .......
356. 9 400. 7 472.2 539.6 619.8 700. 7 774. 8
. . . . . -.4 -32.6 -34.2 -35.9 -43. 1 -48.7
Total receipts ........
356. 9 400.4 439.6 505.4 583.9 657. 6 726. 1
Budget surplus or deficit (-). -45.0 -61. 8 -60.6 -37.5
8.6
45.2
76. 2
Receipts.· Projecte9 increases in receipts from 1979 to 1983
are attributable largely to growth in incomes and increases in
social security taxes scheduled under current law, offset in part
by proposed. tax reductions. The tax reductions proposed by
the administration cause receipts as a percentage of GNP to fall
to 19.3% in 1979. But, because of the progressive nature of
Budget Outlays and Receipts as a Percent of GNP
Percent
Percent
25~--~----------------------------------'-25
OutlayS"
20
20
Receipts
15
15
10
10
5
5
o--------------------------------~------O
1969
71
73
75
77
79
81
83
Fiscal Years
18
Estimate Projection
the tax system, and because of scheduled increases in social security taxes, this percentage rises in subsequent years and, in
1981, is at about the -21 % ceiling the President has established.
The prospect that the tax burden imposed by the Government
may exceed this limit, as currently projected for 1982 and 1983,
would be another reason to consider further tax reductions.
BUDGET RECEIPTS BY SOURCE
[In billions of dollars]
1977
Individual income taxes ......
Corporation income taxes ....
Social insurance taxes and contributions ................
Excise taxes ................
Other .....................
Total ................
1978
156. 7 178.8
54.9 58.9
1979
1980
1981
1982
1983
190. 1 223.9 262.9 301.7 339.9
62.5 69. 1 77. 7 86.5 94.6
160. 1 186. 3 208.4 225.931. 1 34. 7 36. 7 39.5
21. 1 22.4 24.3 26.4
108. 7 124. 1 141. 9
17. 5 20.2 25.5
19.0 18. 3 19.7
356.9 400.4 439.6 505.4 583.9 657.6
726. 1
Budget Receipts: 1969 - 1983
$ Billions
$ Billions
700
700
600
600
500
500
Excise and Other
400
400
300
Social Insurance Taxes
and Contributions
300
200
200
Corporation Income Taxes
Individual Income Taxes
100
100
o .....- -.......---......- .......- -......- -....- -.....~-.... 0
1969
. 71
Fiscal Years
73
75
77
79
Estimate
81
83
Projection
19
Individual income taxes are projected to rise from $190 billion in 1979 to $340 billion in 1983. Corporation income taxes
rise by 51 % over this same period from $62 billion to $95
billion. In comparison to extension of temporary tax provisions,
tax proposals included in the budget reduce individual and
corporation income taxes by $30 billion in 1979 and by $50
billion by 1983. The largest such reductions result from tax reductions proposed to become effective October 1, 1978. The
estimates also include refunds of the proposed wellhead tax on
crude oil as part of the administration's energy proposals. For a
more detailed discussion of these and other tax proposals, see
Part I of the Budget in Brief.
Social insurance taxes and contributions, which increased from
only 12.5% of receipts in 1957 to almost 30.5% two decades
later, are projected to increase to 31.1 % of total receipts in 1983.
The social security tax rate, which increased from 11.7% to
12.1 % on January 1, 1978, is scheduled to increase to 12.26% on
January 1, 1979, and 13.3% on January 1, 1981. The taxable
earnings base is scheduled to increase annually, rising from its
current level of $17,700 to a projected $34,800 by 1983. The
estimates reflect proposed legislation to reduce the unemployment
insurance tax rate from 0.7% to 0.5% effective January 1, 1979.
Estate and gift taxes, customs, excise taxes, and miscellaneous
receipts are projected at $66 billion in 1983, an increase of
$21 billion from 1979. The estimates reflect the administration's
energy proposals announced last spring, which increase excise
taxes significantly, together with increased spending and offsetting reductions in other taxes. They also reflect an administration proposal to eliminate the telephone excise tax (effective
October 1, 1978). Finally, these estimates assume continuation
of the 4 cents per gallon Federal excise tax on gasoline (scheduled
under current law to decline or expire on September 30, 1980)
and airport and airway taxes, as amended by administration
proposals (scheduled to expire on June 30, 1980) .
Budget outlays.-Total budget outlays are projected to increase at an average annUal.li rate of 6.8%, from $500 billion in
1979 to $650 billion in 1983e Outliays are projected to fall from
22.6% of GNP in 1978 to 2006% of' GNP in 1981, below the
President's ceiling of 21 roo
20
PERCENTAGE COMPOSITION OF BUDGET OUTLAYS
Actual
Description
National defense:
Direct Federal payments to
individuals ..............
Grants to States and localities.
Other ....................
1969
1.3
1.8
1977
1979
2.0
2.0
1980
2. 1
1981
1982
2. 1
1983
2. 1
2. 1
* 21. *5 21. 6* . 22. 1 22.5 22.8
41. 7 28.4 22.2
*
Subtotal, national defense ............... 43.0
Nondefense:
Direct Federal payments to
individuals ..............
Payments for individuals
through
States and locali.
ties ....................
All other grants to States and
localities ................
Net interest ...............
Other ....................
1973
Projection
Estimate
*
*
*
*
30.2 24.3 23.5 23. 7 24.2 24.6 24.9
-----
24.6 33.5 39.5 37.4 37.5 38.6 39.2 39.9
4.0
5.3
5. 7
5.4
5.4
5.5
5.5
5.5
6.9 11. 6 11. 3 11. 5 11. 1 10.8 10. 7 10.3
6.9 7.0 7.5 8.0 8.0 7.8 7.3 6. 7
14.5 12.4 11. 8 14.0 14.2 13. 1 12.8 12.6
Subtotal, nondefense. . . - 57.0 69.8
75. 7 76.5 76.3 75.8 75. -4 75. 1
Total .....•........... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
• Less than 0.1%.
Federal Outlays - Constant 1979 Dollars
$ BilliOns
$Billfons
600~----------------------------~--~----6oo
500
500
400
400
Other Nondefense
300
Payments to
Individuals
and Grants
300
200
100
100
National Defense
0-----------------------*---------------0
1950
55
60
65 70
75
80 83
Fiscal Years
Estimate Proj.
21
The major change in the composition of budget outlays over
the last 10 years has been the rapid growth in payments for
individuals and the corresponding relative decline in resources
devoted to other programs. Over the past decade, outlays for
such payments have been growing more rapidly than the national
output, and more rapidly than total Federal outlays. Until recently, spending for national defense (in constant dollars) was
declining. This trend has been reversed and defense spending is
projected to increase modestly (in constant dollars) through
1983.
While total outlays are projected to increase by 30% from
1979 to 1983, projected outlays for international affairs, health,
income security, and national defense increase faster. Outlays
for these functions rise by 45%, 39%, 38%, and 38%, respectively. In comparison, GNP is projected to rise by 47% from
/
1979 to 1983.
Contro"abi'ity.-Outlays in anyone year are considered to
be relatively uncontrollable by the President when the spending
l~vel is determined by existing statutes or prior contracts. Relatively uncontrollable outlays consist of two major categories:
open-ended programs and fixed costs, and payments from prioryear contracts and obligations. As recently as 1967, open-ended
programs and fixed costs amounted to 36% of the budget. By
1983 they are projected to reach 59%.
Outlays from "prior-year contracts and obligations" amount
to an additional 15% to 20% of the budget, and are considered
relatively uncontrollable in the .s hort run. Though this category
cannot be projected beyond the budget year, current amounts
suggest that the relatively uncontrollable portion of the budget
will continue to represent 75% to BOro of the total.
The large proportion of the budget that is relatively uncontrollable has obvious fiscal policy implications. Without legislation
to restrain the growth in such programs, attempts to control total
budget outlays fallon an increasingly smaller portion of the
budget. The President has instituted a multi-year budget planning system to provide greater control of the Federal budget.
With a longer planning horizon, the options for changing both
the scope and direction of Federal programs can be expanded
substantially.
22
Current Services Estimates
Current services estimates are .projections of the costs of
existing programs and receipts under existing law into future
years-unchanged by either congressional or Presidential actions.
They include outlay increases that result from, for example,
increased numbers of beneficiaries entitled to receive payments
or, where required by law, increased benefits due to higher costs
of living. They do not take into account any future policy changes
either proposed by the President or contemplated by the
Congress.
EFFECTS OF BUDGET PROPOSALS
[In billions of dollars]
1977
actual
Receipts :
Curren t services. . . . . . . . . .
Income tax reductions and
reforms ................
Energy proposals ..........
Other proposals ...........
Budget receipts .......
·. ...
·....
1979
1980
1981
1982
528. 7 607. 7 685.5
1983
758. 7
-.2 -23.5 -24.7 -27.0 -29.6 -33.8
5.5
7. 9
4. 3
1. 1
2.9
-. 1
. . . . . -1.9 -1.5 -1.0 -3.8 -6.6
356.9 400.4 439.6 505.4 583.9 657.6
---
Outlays:
Curren t services. . . . . . . . . . 401.9
Proposed legislation and discretionary changes. . . . . . · . . . .
Budget outlays ........
1978
356.9 400. 7 463.8
·. ...
Projection
Estimate
---
---
---
726. 1
---
460.4 492.4 528. 9 552. 1 581. 7 612.9
1.8
---
401.9 462.2
--
7.8
14.0
500.2
542.9
---
Surplus or deficit (- ):
Under current services ..... -45.0 -59.7 -28.5
23. 3
30. 7
37. 1
-- --
575.4 612.4 650.0
---
-.2
Under budget proposals .... -45.0 -61. 8 -60.6 -37.5
55.6
103.8
145.8
8.6
45.2
76. 2
-- -- --
Current services estimates, therefore, provide a basis of comparison that highlights policy changes and recommendations in
the President's budget for discretionary increases· or decreases in
program levels. Special Analysis A, which accompanies the
budget, includes a detailed comparison of the President's budget
for 1979 with current services estimates. It also explains more
fully the basis on which the estimates are made.
The President's outlay recommendations for 1979 are $500
billion, $8 billion higher than the current services level. On a
current services basis, total outlays are projected to increase
from $492 billion in 1979 to $613 billion in 1983. By 1983
23
the program changes recommended for 1979 in this budget
"vould result in projected total outlays of $650 billion, $37 billion
higher than the projected current services level for 1983.
Receipts under the President's tax proposals are expected to
be $440 billion in 1979, a decrease of $24 billion from the
current services level. This reflects the tax reduction and reform
and energy tax proposals in the budget. Without changes in the
tax law beyond those proposed in the budget, receipts of $726
billion are projected for 1983, $33 billion below the current
services level of $759 billion. Ho\vever, since tax receipts tend
to grow more rapidly than the economy as a whole, the President
will carefully consider proposing further reductions between
now and 1983 in keeping with his stated policy of restraining the
Federal budget to approximately 21
of the gross national
product and letting our citizens share the benefits of expenditure
restraint in the form of reduced tax burdens.
The tax proposals in this budget are intended to increase the
fairness of the tax system and to support the continued recovery
of the economy. In the absence of these reductions, unemployment might not continue to decline in 1979. The spending proposals are intended to direct our resources toward critical national needs and to place us on a path permitting a stable budget
balance.
It must be emphasized that the budget surpluses projected beyond 1980 on either a Presidential or a current services basis are
not meant to indicate that such budget surpluses "viII in fact occur.
The desirability of achieving these surpluses depends both on
economic conditions too far in the futu:re to forecast, and on the
need for new or expanded programs or for further tax cuts. More
than anything else, thes~ nominal surpluses indicate the resources
available to the Federal Government for discretionary fiscal and
budgetary policy actions in the years ahead.
ro
24
PART III
MEETING NATIONAL NEEDS:
THE FEDERAL PROGRAM BY FUNCTION
This section discusses the budget in terms of national needs,
agency missions and major programs. 1 National needs are defined
in 16 broad areas that provide a coherent and comprehensive
basis for analyzing and understanding the budget. The budget
resources devoted toward meeting these national needs are classified by budget functions, and the subfunctions that make up each
function generally represent the resources devoted to agency missions. Because of the relationship of national needs to major
functions, and missions to subfunctions, the functional structure
was revised during the past year as follows:
-Energy has been established as a function separate from
natural resources and environment.
-Transportation has been established as a function separate
from commerce and housing credit.
-Military assistance has been reclassified from the national
defense function to the international affairs function.
-The health function has undergone a restructuring of the
subfunctiQns to identify more clearly the major missions of
the Federal Government in the health area.
-Several functional and sub functional titles were changed to
simplify or clarify the major needs or missions being served
by these programs.
While budget outlays are the most obvious measure of the Federal Government's allocation of resources toward meeting national needs, resources are also allocated through various fiscal
activities outside the Federal budget. These activities include outlays of off-budget Federal entities, guaranteed loans, tax expenditures, and outlays of privately owned, Government-sponsored
enterprises. Major activities in these categories are discussed in
the national needs sections that follow . More detailed discussions
are provided in Parts 2 and 6 of the Budget and in the Special
1
See Part 7 of the Budget for a discussion of this requirement.
260
25
400 0 - 78 - 4
Analyses volume of the budget under "Federal Credit Programs"
and "Tax Expenditures."
oIf-budget Federal entities are federally owned and controlled,
but their transactions have been excluded from the budget totals
under provisions of law. Their spending is not reflected in budget
outlays or in the budget surplus or deficit, although Treasury borrowing to finance their outlays does add to the Federal debt.
Spending by these entities (primarily loans) does not differ in
nature or effect from spending of other F'e deral programs.
Guaranteed (or insured) loans are loans for which the Government ,g uarantees the payment of the principal or interest in
whole or in part. Loan guarantees may significan~ly affect resource allocation in the economy by diverting private credit from
one activity to another. Most guarantees support housing, although in recent years they have been used increasingly for other
purposes. In general, loan guarantees do not result in outlays
unless a default occurs. 'T hey are not subject to the same review
and control process as those programs that result in budget outlays. 'T he administration is proposing a process that would subject
both direct loans and loan guarantees to greater budget discipline.
Tax expenditures are revenue losses attributable to provisions
of the individual and corporation income tax laws that allow a
special exclusion, deduction, or exemption from income, a preferential rate of tax, a special credit, or a deferral of tax liability.
Nearly all tax expenditures are intended either to encourage particular economic activities or to reduce the taxes of persons in
special circumstances. Tax expenditures are all classified into the
same functional categories as spending programs.
Government-sponsored enterprises are privately owned organizations that have been established and chartered by the Federal
Government to carry out special functions. Because they are privately owned, their outlays are excluded from the budget totals.
They primarily support housing but also support agriculture and
higher education.
26
National DeFense
The national needs for defense are: to protect America's
people, its institutions, and its lands; to preserve overall military
balance between the United States and its allies and the Soviet
Union and its allies; and to promote peace and security through
arms limitations, more stable relationships among countries, and
negotiated settlements of disputes.
The major programs supporting these national needs are:
o strategic forces, which include bombers and both land-based
and submarine-launched nuclear missiles;
• general purpose forces and related programs, which include
our air, naval, and ground conventional combat forces;
• intelligence and communication;
• research and development;
• supporting activities in the Defense Department;
• atomic energy defense activities, which include nuclear
weapons development and production and naval reactor
development; and
• other defense-related activities of nondefense agencies.
National Defense Programs (Budget Authority)
$ Billions
$ Billions
140~--------------------------~--------~140
•
Strategic Forces
120
100
General Purpose Forces and Related
80
120
100
80
Intelligence and
Communications
60
Research and
Development
40
60
40
Supporting Activities
20
0
Fiscal Years
20
Atomic Energy and
Defense Related
1977
Actual
1978
1979
0
Estimate
27
The budget proposes $128.4 billion in budget authority for these
activities for 1979. Total outlays for national defense are estimated at $117.8 billion for 1979, an increase of 9.4% over 1978.
To carry out the missions addressed to national defense needs,
the budget makes the following proposals:
.• Maintain the current basic force structure and increase real
defense spending to offset Soviet force improvements.
• Continue to modernize the strategic forces in order to maintain the effectiveness and credibility of the U.S. deterrent
against nuclear attack.
• Upgrade and improve conventional forces and general military capabilities.
• Strengthen our ability, in conjunction with allied forces, to
repel any attack launched against NATO nations.
• Maintain supply levels for U.S. forces sufficiel1t to sustain
them in combat at least as long as opposing forces can be
sustained.
• Increase the firepower and mobility of the Army and Marine
infantry divisions to provide greater flexibility to respond to
threats outside the NATO area.
• Continue efforts to modernize naval forces through the construction of new ships and extensive overhaul of others.
• Identify and pursue efficiencies that reduce the costs of
defense without diminishing military capability.
A major determinant of U.S. defense policy is the challenge to
U.S. and Western European security presented by the military capabilities of the Soviet Union and its allies. Over the past decade,
Soviet defense spending has grown as major components of
Soviet forces have been"modernized. During this same period,
U.S. defense modernization proceeded slowly. For the past 2
years, however, U.S. defense spending has grown somewhat in
real terms. In consultation with our NATO allies, the administration has agreed upon the need to strengthen our conventional
military capability in Europe in order to deter and counter the
forces of the Soviet Union and its allies.
At the same time, we will continue our efforts to negotiate
international agreements to limit and reduce all armaments, to
control an·d prevent proliferation ~f nuclear technology, to restrict arms trade, to settle disputes by peaceful means, and to
strengthen international stability.
28
Legislation is being proposed to shift military retired pay to an
accrual basis, operating through a trust fund as Federal civilian
retirement systems do. As a result, subsequent budgets would
reflect the future retirement costs of present military personnel.
In view of the complex accounting changes involved, this proposal is not reflected in the budget schedules.
Outlays for atomic energy defense activities will increase by
10% between 1.978 and 1979.
Military assistance, previously classified in this function, is now
included in international affairs.
International Affairs
National needs in the area of international affairs include the
development of a stable international environment that will reduce conflicts, the encouragement of worldwide economic growth
with equity, and the promotion of respect for hllman rights. To
meet these needs the Federal Government undertakes the
following major missions: foreign economic and financial assistance, military assistance, the conduct, of foreign affairs, foreign
infonnation and exchange activities, and international financial
programs. Total outlays for these missions are estimated at $6.7
billion in 1978 and $7.7 'billion in 1979. Foreign economic and
financial assistance is concentrated on poor people in the poorest
countries, and outlays are estimated to increase from $5.3 billion
in 197.8 to $5.4 billion in 1979. The administration is firmly committed to increasing economic aid levels substantially over the
next 5 years while significantly improving the effectiveness of the
aid, particularly by assuring that the growth directly benefits
the poor.
Multilateral development assistance is provided through U.S~
contributions to international financial institutions such as the
World Bank, and regional banks and to United Nations organizations to support their development programs. Budget authority of
$3.5 billion in 1979 is proposed for paying both past and present
subscriptions which the United States has pledged to
provide to international financial institutions. Additional budget
authority of $282 million in 1979 is proposed for voluntary contributions to 19 international organizations and programs.
Bilateral development aid is provided through the Agency for
International Development (AID) programs, the Food for Peace
29
program, and through security supporting assistance. The AID
programs assist poorer developing countries with projects primarily in the sectors of food production, health, population and
education. Budget authority for the AID programs is proposed
to increase from $1.3 billion in 1978 to $1.7 billion in 1979,
although outlays are estimated to rise more gradually.
The Food for Peace program fulfills a range of objectives including humanitarian and security assistance goals. In the future
the food aid program will place increasing .emphasis on developmental objectives. Outlays are estimated to be $1.1 billion in
both 1978 and 1979. This will permit the shipment of 6.7 million tons of food overseas, about two-thirds of the worldwide
target set by the UN for all donors.
Security supporting assistance programs provide economic aid
to selected countries of particular political importance. More
than 95% of the funds go to the Middle East to improve the
chances of a lasting peace. Outlays for other countries will decline slightly, so total outlays for s.u pporting assistance are estimated to fall from $1.8 billion in 1978 $1.7 billion in 1979.
to
Outlays for International Affairs
$ Billions
$ Billions
10~~~------------------------------~10
8
8
6
6
Other Foreign
Affairs Activities
4
4
2
o-+----1969 70
Fiscal Years
30
~--t--O
71
72
73
74
75
76
77
78
79
_ Estimate
80
The United St~tes provides defense materiel and services to
allies and friendly governments for their internal security, selfdefense, and participation in collective security arrangeme~ts.
The budget proposes budget authority of $134 million for grant
military assistance in 1979, $672 million for foreign military
credit sales and $32 million for international military education
and training.
The mission of supporting American interests throughout the
world is largely carried o'u t by the Department of State and 132
embassies and 119 consulates overseas. Outlays for this mission
are estimated to rise from $674 million in 1978 to $766 million
in 1979. In addition, outlays for U.S. assessments as a member of
47 international organizations are estimated to remain constant
at $385 million.
.The creation of the International Communication Agency will
strengthen the mission of improving understanding between
the United States and foreign nations. The new agency will incorporate activities of the U.S. Information Agency and the exchange programs of the Department of State. Outlays are estimated to increase from $365 million in 1978 to $393 million in
1979. Outlays to support Radio Free Europe and Radio-Liberty
are estimated to be $73 million in 1978 and $79 million in 1979.
There are several major international financial programs designed to facilitate exports and improve the ~nternational monetary system. The Export-Import Bank helps finance the export
of U.S. goods and services by direct loans, loan guarantees and
insurance and refinancing of export credits. To encourage exports, the Bank's direct credits should increase by 30% in 1979
from the estimated 1978 level and larger guarantee and insurance authorizations are also expected. Outlays, net of lo'a n repayments and other receipts, are estimated to be $196 million in
1978 and $404 million in 1979.
For 1978, $200 million is proposed as budget authority to
cover any requirements for the $1.7 billion U.S. share in the
Supplementary financial Facility of the International Monetary
Fund (IMF), designed to increase the ability of the IMF to help
.
countries with balance of payments problems.
The Foreign military sales trust fund is the vehicle through
which sales of certain U.S. military equipment to foreign governments are made. In 1979, the fund is expected to have net budget
, authority of $3.1 billion and net outlays of $0.3 billion. The
major tax expenditure item is the deferral of tax on the profits
31
of domestic international sales corporations (DISCs). More
flexible exchange rates in the international economic environment have weakened the rationale for DISC, and therefore the
President is recommending that it- be phased out over the next
3 years.
General Science, Space, and Technology
Our national needs in general science, space, and technology
include expanding basic scientific knowledge, gaining a better
understanding of the Earth and space through space research and
exploration, and developing practical applications of space technology. The missions and programs that meet these national
needs are only a part of the Federal Government's support for
research and development, most of which is funded in other
functional categories of the budget, such as energy, health, and
defense.
To help address these national needs, the Federal Government
undertakes the following major missions: general science and
Outlays for General Science, Space and Technology
$ Billions
$ Billions
6
4
6
Apollo Lunar
Landing
Program
4
2
2
General Science and Basic Research
o
1969 70
Fiscal Years
32
0
71
72
73
74
75
76
77
78
79
Estimate
80
-
basic research; space flight; space science, applications, and technology; and supporting space activities. Outlays are estimated to
increase from $4.8 billion in 1978 to $5.1 billion in 1979.
For general science and basic research, the 1979 budget recommends continued real growth in the funding of basic research
with emphasis on critical national problems. This recommendation is a reflection of the administration's strong support for basic
research. Total obligations for the conduct of basic research across
all Federal programs, including basic research funded in other
functional categories, are estimated at over $3.6 billion in 1979.
This represents growth of 10.9% over 1978, about 5% above
expected inflation. Key programs that directly support this mission are administered by the National Science Foundation (NSF)
and the Department of Energy. NSF intends to emphasize work
in the causes of variations in the climate and earthquake-related
basic and engineering research in 1979. The Department of
Energy will continue to support research in high-energy and
nuclear physics, as well as the life sciences.
Total outlays for the major missions related to space are
expected to rise from $3.6 billion in 1978 to $3.8 'billion in 1979.
Outlays of $1.4 billion are recommended for continued development and production of the space shuttle. Only four shuttle
orbiters are now planned to meet civilian and military needs
as opposed to the five orbiters recommended in the 1978 budget.
A new mission to explore the Sun's polar regions is proposecl
for 1979 in order to improve our understanding of the effects of
the Sun on the Earth. As part of the administration's initiative to
accelerate climate research, a satellite system to study the amount
of radiation absorbed and reflected by the Earth is also
recommende"d.
Energy
National needs for energy are to: reduce dependence on foreign oil in the near term, prepare the U.S. economy to with_ stand better the effects of high energy prices, and develop renewable and essentially inexhaustible sources of energy for sustained economic growth through the next century. In so doing,
advanced nuclear power systems must be developed that limit
the potential for international· proliferation of nuclear weapons.
In addition, solutions that meet our energy national needs must
33
260-400 0 - 78 - 5
protect the environment and be fair, equitable, and fiscally
sound.
The national energy plan submitted to the Congress last April
is designed to encourage energy conservation, to promote a shift
to more plentiful and permanent energy supplies, to provide
greater investment certainty, to encourage greater production of
energy in the United States, and to develop renewable energy
resources. The plan also protects the Federal budget from unreasonable burdens and gives balanced consideration to the concerns of both consumers and producers.
The legislative initiatives that were submitted with the national energy plan would provide the pricing and tax incentives
to promote conservation, greater production from existing domestic resources, and the conversion from the use of oil and
natural gas to a greater use of more abundant fuels. The budget
programs presented in this section support the national energy
plan. The plan also proposes taxes such as the crude oil equalization tax, an automobile fuel-efficiency tax ("gas guzzler")both these taxes to be refunded in their entirety-and a tax on
the use of oil and natural gas in business and utilities. New regulatory measures are recommended, such as a new oil and natural gas pricing policy that would encourage the development
of new domestic supplies and eliminate the distinction between
interstate and intrastate natural gas markets. The taxes are discussed in Part I, Budget Receipts.
The budget p,roposals that address our national needs in
energy are distributed among the following major missions:
energy conservation, energy supply, emergency energy preparedness, and energy information, policy, and regulation. Total outlays for these missions are estimated at $9.6 billion in 1979, up
from $7.8 billion in 1978.
The major mission of energy conservation incorporates several
major programs. Outlays are expected to increase to $1,402 inillion, as compared to $601 million in 1978. Programs in technology development and applications are primarily aimed at conducti~g research and developing new technologies to make more
efficient use of energy-. In addition, they also emphasize the development of techniques to substitute for oil and natural gas. The
recommended increase in outlays will permit greater emphasis
on building performance standards, and a 66% increase in funds
34
Effect of National Energy Plan on Petroleum ImpOrts
Millions of Barrels Daily
Millions of Barrels Daily
25~----------------------------------~25
I
Without President's Plan
I
20
20
I
Total Consumption
15
15
10
10
5
5
o
o
1950
55
60
65
70
1976
80
85
Projection
Fiscal Years
for cogeneration (production of electricity and-steam simultaneously) , waste heat utilization, and substitution for oil and natural
gas.
Programs in efficiency standards, grants, and technical assistance are designed to encourage energy conservation activities by
individuals, businesses, nonprofit institutions, and government
entities. Outlays for energy conservation grants to States are proposed to increase 188% from 1978, in keeping with the national
energy plan. Legislation to improve the State gr~nts program will
be proposed after completion of a study in the spring on the role
of State governments in energy policy. Major emphasis will be
placed on the funding of energy conservation improvements for
schools, hospitals, and the homes of low-income individuals. The
energy extension seIVice, which provides energy information to
individuals, farmers, and small businesses, is recommended for
nationwide expansion. Funding is also proposed for other national energy plan initiatives such as utility rate reforms and the
development of minimum efficiency standards for home appliances. The national energy plan includes an automobile fuel-efficiency tax ("gas guzzler") with all revenues to be refunded as
subsidies for the purchase of fuel-efficient vehicles.
35
I
Outlays for Energy
$ Billions
$ Billions
12~----~----~~~------~----~~~----~12
10
10
8
8
Emergency Preparedness
6
6
Conservation
4
2
4
Energy Information,
Policy, and Regulation
2
0--------------------------------------0
1969 70 71 72 73 74 75 76
77 78 79 80
Fiscal Years
Estimate
The national energy plan contains several important tax incentives for energy conservation and conversion fr9m oil and natural
gas to other fuels. They include tax credits for residential insulation and business tax credits for the~mal efficiency, cogeneration,
and coal conversion; both businesses and individuals can receive
tax credits for the use of solar equipment.
The programs that constitute energy supply are designed to
encourage the development of additional energy resources and
technology that will increase production from domestic energy
resources, especially those that can substitute for increasingly
scarce oil and natural gas. Proposed outlays for energy supply
are $4.1 billion in 1979, as compared to $4.2 billion in 1978.
Research, development, and demonstration programs figure
prominently in fulfilling energy supply. The Federal Government subsidizes research and development when circumstances
such as the uncertainty or the inability to capture future benefits
inhibit private industry efforts.
36
The advanced nuclear fission research and development program has been redirected from its former primary emphasis on
early commercial introduction of the plutonium fueled liquid
metal fast breeder reactor. The program objective now is the
dev~lopment of advanced nuclear systems that minimize the risks
of international nuclear weapons proliferation. The maintenance
of a strong, but reduced base technology effort for the liquid metal
fast breeder reactor is proposed; cancellation ,o f the demonstration plant at Clinch River, Tennessee, an unnecessarily expensive
. project based on outdated technology, is again recommended.
The administration believes that providing for the permanent
disposal of nuclear wastes is necessary to ensure the continued use
of current generation nuclear power plants. The proposed budget
for commercial nuclear waste management programs provides
the resources needed to develop and demonstrate by the earliest
p<,?ssible date, 1985, an effective means for permanently disposing
of nuclear wastes.
Outlays for fossil research (coal, natural gas, and petroleum)
are divided among Goal utilization (including environ~~ental
control technology), coal conversion, enhanced oil and natural
gas recovery, oil shale technology, and coal mining technology.
A solvent refined coal demonstration plant (\vhich will eliminate
many of the pollutants present in coal) is proposed and the previously initiated coal gasification demonstration plants are continued. Programs for research in inexhaustible and renewable
resources develop and demonstrate new technologies in the following areas: solar (including power from wind and ocean
sources) , geothermal, small hydropower, biomass (use of organic
waste products and crops for fuel), and fusion. Increased research is planned in photovoltaics (technologies designed to
generate electricity directly from the Sun), and wind and geothermal energy. Finally, research is conducted on the environmental problems created by the production of energy. Total
outlays for research, development, and demonstrations in energy
supply are estimated at $3.0 billion in 1979.
The emergency energy preparedness mission consists of contingency planning and the development of the strategic petroleum reserve. In combination, these pTograms will increase the
ability of the United States to withstand the effects of major
disruptions in world petroleum' markets. The administration is
37
committed to completing storage of 500 million barrels by December 1980, and to developing a 1 billion barrel reserve by 1985.
Outlays for this major mission are estimated at $3.3 billion in
1979, as compared to $2.3 billion in 1978.
Outlays for energy information, policy, and regulation are
expected to total $930 million in 1979~ as compared to $799
million in 1978. Federal Government regulation of the energy
area includes control over prices, commodity flows, and safety
aspects of the energy-industry. The Federal Energy Regulatory
Commission, formerly the Federal Power Commission, and now
an autonomous unit of the Department of Energy, is responsible,
among other things, for regulating the sale of wholesale electricity _
in interstate commerce and approving interstate natural gas
prices. The Economic Regulatory Administration, also in the
Department of Energy, is responsible for pricing and allocating
petroleum products, as well as enforcing compliance with these
regulations. No major increases in outlays are expected, but
several proposed internal changes include concentrating on auditing major refiners, and reducing personnel in petroleum product
pricing on account of planned gasoline decontrol. The Nuclear
Regulatory Commission (NRC) regulates all civilian users of
nuclear materials and nuclear energy. As part of the national
energy plan NRC is changing its inspection program to improve
the effectiveness of its regulatory activities by providing a full- time inspector at nuclear reactor sites.
Considerable improvements in the collection of energy data
and its analysis are anticipated from the merger of Federal energy
data collection efforts in the Department of Energy's Energy
Information Administration. A major survey of residential energy
use is proposed to improve substantially the accuracy and reliability of energy consumption data.
Natural Resources and Environment
Our national needs for natural resources and the environment
are to protect public health by assuring a clean environment; to
conserve and develop our natural resources and improve our
understanding of them; and to preserve our recreational facilities
and historical sites. To achieve these national needs the Federal
38
Outlays for Natural Resources and Environment
$ .Billions
$ Billions
15~----------------------------~--~----~15
12
12
9
9
6
6
3
Water Resources
o
1969 70 71
Fiscal Years
72
73 74
3
Conservation,
Recreation,
and Other
75
76
77
78
79
80
0
Estimate
Government undertakes the following major missions: pollution
control and abatement, water resources, conservation .and land
management, recreational resources, and other natural resources.
Outlays for these missions are estimated to be $12.1 billion in
1978 and $12.2 billion in 1979.
The Federal Government controls and reduces air, water, and
land pollution both directly and through State and local governments who are supported by Federal financial and technical
assistance. Outlays for pollution control and abatement are estimated to increase from $4.9 billion in 1978 to $5.6 billion in
1979. The Federal Government provides grants to State and local
agencies for 75% of the cost of planning, designing, and constructing municipal wastewater treatment facilities. With over
11,295 projects currently 'u nderway, nearly all of the $18 'billion
authorized under the Federal Water Pollution Control Act .of
1972 has been obligated. The administration is committed to an
additional $45 billion over the next 10 years to assure that the
construction of wastewater treatment facilities meets our national
water quality goals.
39
The administration is proposing a substantial increase in both
funds and personnel to guarantee that the quality of the Nation's
drinking water is adequately protected. Further, amendments
to the Safe Drinking Water Act will be proposed to define more
precisely the respective responsibilities among the Federal Government, States, and localities in protecting local drinking water
supplies.
The Federal Government seeks to balance the benefits of water
resources projects against the need to preserve the environment.
Federal programs involved in carrying out this mission include
flood control, irrigation and water conservation, development and
maintenance of inland waterways and harbors, hydroelectric
power development, water supply development, recreation and
wildlife preservation, and erosion control.
A major policy study is now underway to improve the effec- ,
tiveness, consistency, and contribution to environmental quality
and to water conservation of Federal water programs. Although
no new water resource construction projects are proposed now,
the administration may recommend some new project starts
along with its policy recommendations. At that time, other recommendations in this ~udget may also be amended. For highpriority projects now under construction-mainly hydroelectric
power, urban flood damage, and municipal and industrial water
supply . projects-the same schedule as in the 1978 budget is
recommended. Slightly reduced work levels and completion delays for some other projects are proposed.
The major mission of conservation and land management is
carried out through a program of Federal land management
. that strives for an optimal balance among various uses: the
conservation and development of natural resources, including
timber, minerals, and wildlife habitat, and the provision of rec•
• •
reatlon
opportunItIes.
To meet the need for recreational resources, the Federal Government, either directly or through grants to States, acquires,
develops, and operates parks, recreation areas, historic sites, visitor facilities, and wildlife refuges. The national heritage program
is a new program proposed by the administration to conserve
the best of the Nation's natural and historic heritage. State and
local governments will be encouraged through grants and technical assistance to preserve outstanding and unique areas of scenic,
wild, geological, ecological, and historic importance. Appropriations for the Land and water conservation fund are recommended
40
at a record level of $725 million in budget authority in 1979,
not only to help fund the national heritage program but also to
eliminate almost completely the backlog of land acquisiti~ns at
those areas specifically authorized by the Congress for purchase.
The administration has also proposed more than doubling the
nationwide acreage set aside for national parks and wildlife
refuges through the designation of 92 million acres in Alaska for
these purposes.
An expanded effort is proposed to understand better and to
anticipate climatic fluctuations . so the Nation will be better
prepared for the effects of climatic anomalies.
Agriculture
National needs for agriculture include provision of adequate
returns to farmers based on the cost of production, assurance
of sufficient productive capacity to meet both domestic needs and
international competition, and improved technology. To achieve
these national needs, the Federal Governmerit undertakes the
Outlays for Agriculture
$ Billions
$ Billions
10~------------------------------------~~10
8
8
6
6
4
4
2
2
o
0
1969 70
Fiscal Years
71
72
73
74
75
76
77
78
79
80
Estimate
41
260-400 0 - 78 - 6
major missions of farm income stabilization and agricultural
research and services. Outlays for these missions are estimated at
$5.4 billion in 1979.
Outlays for farm income stabilization are estimated to decrease
substantially from $7.9 billion in 1978 to $4.2 billion in 1979.
Grain reserves are being established in 1978, and acreage setasides are exp.e cted to bring supplies of feed grains and wheat
more nearly into balance with demand. The Food and Agricultural Act of 1977 has committed the Federal Government to sup-port the prices to producers of major crops based on the average
cost of production. Net outlays for the Agricultural Credit Insurance Fund and the Federal Crop Insurance Corporation are expected to decline because it is assumed that there will be normal
weather in 1979. Agricultural production and marketing efficiency are improved, in part,' through research and extension
activities aimed at developing and applying new technology. Outlays of $774 million are estimated for these activities in 1979,
which is about the same level as in 1978. Animal and plant health
services, marketing services and information gathering bring total
outlays for agricultural research and services to a recommended
$1.3 billion in 1979.
Commerce and Housing Credit
National needs for commerce and housing credit include an
adequate national supply of mortgage credit, special credit assistance for economically distressed urban and rural areas, an
effective mail service, and .o versight of, and assistance to business
to encourage jobs and a sound economy.
To achieve these national needs the Federal Government
supports major missions for mortgage credit and thrift insurance, the postal service, and other advancement and regulation
of commerce. Outlays of $3.0 billion are estimated for these
missions in 1979.
Federal mortgage credit and thrift insurance is supported by
programs that promote the growth and stability of the private
housing market. The 1979 budget proposes $4.0 billion in Government National Mortgage Association (GNMA) mortgage
purchase commitments. These commitments would facilitate the
development of an estimated 235,000 units of new multifamily
housing, some of which would be occupied by low-income tenants
•
42
and others by middle-income households in selected distressed
central cities. The effort to facilitate new middle-class housing
in distressed central cities is a new initiative of this administration
to aid the revitalization of urban areas.
The Federal Housing Administration's (FHA) mortgage and
loan insurance programs provide assistance to families who are
not adequately served by the private market. 'Recently enacted
legislation expanded the availability of mortgage credit to a large
number of families. The administration is also proposing an operating subsidy program for subsidized FHA insured projects in
financial trouble. This program and the continued improvement
in general economic conditions should substantially reduce the
number of project defaults in the future. Outlays for the FHA ,
are estimated at $221 million in 1979.
The Farmers Home Administration (FmHA) provides housing loan and grant assistance to low- and moderate~income families in rural communities. Outlays for the FmHA housing programs are estimated to be $455 million in 1978 and to decrease
to -$99 million in 1979 because of increased asset sales. These
Outlays for Commerce and
$ Billions
Housi~
'
Credit
$ Billions
6~----------~~------------------------~6
4
4
2
2
o
-2
Mortgage Credit and Thrift Insurance
-2,
-4~--~~~~--~--~~--~--~~~--~--~-4
1969 70
Fiscal Years
72
73
74
75
76
80
Estimate
43
estimates assume enactment of proposed legislation that will
provide assistance to low-income families who occupy inadequate rural housing.
The Postal Service is an independent Federal Government
entity subsidized by the Federal Government. Proposed payments
to the Postal Service amount to $1.8 billion in 1979.
To .meet the growing financial needs of small businesses, the
Small Business Administration will increase its loan assistance
program to $3.3 billion in 1979.
The Federal Government also aids business and individuals
through several tax expenditures. The investment tax credit on
equipment and preferential tax rates on the initial $50,000 of
corporate income aid business. Indivjduals receive benefits
through favora"ble tax rates on capital gains income and through
Federal income tax deductions of mortgage interest payments
and property taxes.
Transportation
The national needs for transportation are the promotion of a
safe, efficient, and responsive transportation system that meets
the needs of the people and commerce and that assists in meeting
the Nation's energy and environmental goals. To achieve this
national need, the 1979 budget proposes to spend $17.4 billion
for ground, air, water, and other transportation programs. This
amount is necessary to continue existing programs while initiating
new efforts designed to improve transportation programs.
A major multiyear highway and mass transit bill is proposed.
The bill consolidates and simplifies many categorical programs
and allows greater State and local flexibility in setting priorities
and carrying out programs. Under the'bill, more mass transit
assistance will be provided on a formula basis. The new bill also
p~oposes to adopt unifo:nn share levels for lfederal highway and
mass transit assistance: 90% for all Interstate projects and highway and. transit projects substituted for withdrawn Interstate
segments, and 80% for all other highway and transit projects. By
1982 States must make firm commitments to either construct
their unbuilt Interstate segments or transfer the Interstate
funds to alternative mass transit or highway projects. The adoption of the uniform funding proposal should allow local
decisionmakers to evaluate highway and mass transit projects on their merits rather than funding differences.
44
,
Outlays for Transportation
$ Billions
$ Billions
20~----------------~----------~--------~20
16
16
12
12
8
4
4
Air
o
1969 70
0
71
72
73
74
75
76
77
Fiscal Years
* Includes a Small Amount of Outlays in Other Transportation
78
79
80
Estimate
An increased emphasis on ground transportation safety is proposed. Significant increases in budget authority are provided for
bridge replacement and rehabilitation and for programs that
encourage safety, such as the 55-mile-per-hour speed limit.
Service and fare adjustments may be necessary in 1979 for
Amtrak passenger routes since the budget is proposing to hold
Amtrak operating subsidies at the 1978 levels.
Additional air traffic controllers and improved weather and
navigation services are proposed to fulfill the Government's
responsibilities to air transportation programs. The Civil Aeronautics Board is establishing new policies that should result in
lower air fares for the public by increasing competition among
•
carrIers.
The budget proposes additional ship construction subsidies for
a variety of new commercial vessels. Operating subsidies, however, are increasing only slightly in 1979 since the demand for
certain U.S. ships in the domestic market is rising. Both of these
45
subsidies are necessary to offset higher labor, operating, construction, and material costs of U.S.-flag ships that give foreign ships
competitive advantages in our foreign trade.
The administration strongly supports enactment of waterway
user charge legislation that will establish charges to users of the
inland waterways in amounts to recover a substantial portion of
the Government's costs.of .building and maintaining the system.
Users currently pay nothing towards those costs which now approach $500 million per year.
Community and Regional Development
-
National needs for community and regional development
include: urban neighborhoods and rural areas that are economically and socially viable; strengthened State and local capacity
to revitalize distressed areas; and mutually supportive relationships among central cities, suburban areas, rural towns, and the
countryside. To help achieve the~e national needs, the Federal
missions are co,mmunity development, area ·a nd regional development, and disaster relief. Total outlays for these missions are
estimated to be $8.7 billion in 1979.
The Federal Government currently provides a substantial
amount of assistance to urban areas through a vast array of programs. These programs are included not only in the community
and regional development function, but several others as well.
While a precise accounting is difficult, it is possible to obtain a
minimum estim~te of Federal urban assistance by combining
the outlays for the following major urban programs:
• most of the HUD programs;
• the urban portion of the Department of Labor's employment and training programs;
o many of the Economic Development Administration (EDA)
programs of the Commerce Department; and
o the urban highway and mass transit programs of the
Department of Transportation.
Estimated outlays in the budget for these major direct urban
programs total $16.1 billion in 1979, an increase of $2.6 billion
or 19% over 1978. Outlay estimates in this category increase to
$20.0 billion in 1980.
46
An alternative estimate of Federal assistance to urban areas,
based on the amount of Federal grants expected to go to SMSA's
(including both central cities and suburban areas), also shows
an upward trend. Outlays for grants to SMSA's are estimated
to increase from $44 billion in 1977 to $55 billion in 1979.
A number of significant improvements are proposed in the
budget to increase the efficiency of exis~ing programs. These proposals represent the first phase of the administration's program
to support local efforts to improve and revitaJize distressed urban
areas.
New commitments under the community development block
grant programs are estimated to be $4.1 billion in 1979, resulting
in total estimated outlays of $2.8 billion. The t\VO major elements
are: basic community development block grants, which provide
communities the option of funding a range of activities, including
site acquisitions, public oonstruction, and the rehabilitation of
structures; and urban development actio~ grants, which offer
discretionary grants to distressed cities and urban counties to
supplement other local resources in redeveloping deteriorated
urban neighborhoods.
The rehabilitation loan program offers direct loans to homeowners, tenants, and businesses ill distressed areas with subsidized
Outlays for Community and Regional Development
$ Billions
$ Billions
12~----------------------------------~12
Local Public
Works Program--,...__
8
8
Disaster Rei ief
and Insurance
4
4
o
0
1969 70 - 71
Fiscal Years
72
73
74
75
76
77
78
79
80
Estimate
47
interest rates as low as 30/0. In 1979, about 10,000 direct rehabilitation loans will be made, resulting in net .outlays of $85 million.
Economically depressed areas will continue to receive assistance through the Economic Development Administration, which
will expand its field offices to all 10 Federal regions in 1979.
Budget authority for rural economic development districts and
counties will increase from $171 million to $213 million in 1979,
while budget authority for citie~ increases from $127 million to
$205 million.
Rural areas will get additional assistance from the Depart'ment 'of Agriculture in the form of rural development grants,
water, sewer, and community facility insured loans, and industrial development loan guarantees.
Outlays for disaster relief and insurance are estimated to be
$1.0 billion in 1979.
Education
The nation.al needs for education are the extension of knowledge, equal access to education for all Americans, and special
Outlays for Education
$ Billions
$ Billions
14~----~--~~~----------------~------~14
12
12
10
10
8
8
6
6
4
4
2
2
o
0
1969 70
Fiscal Years
48
71
72
73
74
75
76
77
78
79
Estimate
80
educational services for the handicapped and disadvantaged. To
achieve our national needs in education, the Federal Government
undertakes major missions in higher education, elementary, secondary and vocational education, and in research. Federal outlays for these missions are estimated to be $12.0 billion in 1979
and $13.2 billion in 1980.
The Federal Government provides assistance for elementary,
secondary and vocational education through formula and discretionary grants to State and local education agencies. The
largest share of these funds provide supplementary educational
services to low-income/low-achieving students through Title I
of the Elementary and Secondary Education Act. To help alleviate special educational problems faced by school districts, substantial increases are requested in 1979. Emphasis will be placed
on improving basic skills, especially reading. Outlays for this
mission are estimated to be $6.5 billion in 1979 and $7.3 billion
in 1980. Legislation is proposed to reform the impact aid program
which provides aid to school districts affected by the presence of
the Federal Government. This proposal would allow the impact
ajd program more accurately to reflect the financial burden
imposed no local educational agencies by the Federal presence.
In 1979, the Head Start program will be expanded. Additional
support is also requested for programs aimed at reducing child
abuse and neglect. The capacity of local schools to deliver educational services to children with limited English language skills
will be strengthened by additional teacher training and curriculum development.
II} support of higher education, the 1979 budget recommends
$2.1 billion in budget authority for the basic opportunity grant
program. Grants of up to $1,800 for 2 million undergraduate
students in the 1978-79 school year are being proposed. In order
to increase middle-income participation in the basic grant program, the asset reserve will be raised to $25,000. Budget authority of $77 million and $450 million is requested for the state
student incentive grant program and the college work study
program, respectively. The administration will be developing
proposals to assist families of middle-income college students
meet the costs of higher education. These proposals will be offered
as alternatives to currently discussed tax credits. Funds are also
requested to enable higher education institutions to renovate and
construct facilities to aid handicapped individuals.
49
Research and general education aids are provided through
programs that promote education research and development
and cultural affairs. Recommended outlays for these programs
are estimated to be $1.2 billion in 1979. The National Institute
of Education will focus its sup.p ort for research and development
on activities aimed at improving the educational performance
of disadvantaged students.
Training, Employment, and Social Services
The Federal Government helps individuals-especially the unemployed, disadva~taged, and disabled-get jobs and increase
earnings through training, employment services, and, as needed,
temporary public service jobs. To achieve these national needs,
the Federal Government undertakes the major missions of training and employment, social services, and other labor services.
Outlays for these missions are estimated to be $18.4 billion in
1979.
Although the economy is improving, unacceptably high unemployment rates persist and continued special employment programs are required. Therefore, the 1979 budget requests funding
for the 725,000 public service jobs, the same level as in 1978.
As part of the proposed Better Jobs and Income Act, improved
employment assistance will be provided to welfare recipients.
If there is a shortage of private sector jobs, the Government will
make available subsidized minimum wage employment in the
public sector. The jobs portion of this new act will begin in-1980
and demonstration projects will be started in 1979.
The 1979 budget proposes continuation of most activities under the C'omprehensive Employment and Training Act (CETA)
that is scheduled to expire in 1978. However, these programs
will be redirected toward promoting permanent private se~tor
employment. Grants to State and local governments in 1979
under CETA will provide outlays of approximately $1.9 billion
and produce about 430,000 training or job opportunities.
Outlays for programs designed specifically for youth, which
does not include CETA Title I, are estimated to total $2.3 billion
in 1979. This includes $376 million under the Job Corps program; $740 million under the summer youth employment pro·gram to provide over 1 million job opportunities for disadvantaged youth; and $1.2 billion for programs under the Youth
50
Employment and Demonstration Projects Act. In addition, a
special $400 million program to increase the involvement of businessmen in job training programs in order to increase the placement of the disadvantaged in private sector jobs, is expected to
benefit a large number of minority youths.
The work incentive (WIN) program helps those receiving aid
to families with dependent children (AFDC) to find jobs. Estimated outlays of $365 million in 1979 will result in approximately 270,000 individuals being placed in unsubsidized jobs.
The Federal Government sets and enforces standards for
wages, overtime, and other employer-employee relationships,
including collective bargaining, and publishes employment,
wage, and price statistics. Outlays for these services are estimated
at $477 million in 1979.
Social services grants finance the delivery of local social services. These grants pro·vide a broad range of services to the poor,
the disabled, the elderly, and neglected, homeless, and abused
Outlays for Youth Training & Employment Programs
$ Billions
$ Billions
4
4
Total~ ,;
y
3
3
Youth Employment
and Demonstration
Projects Act
2
2
1
1
o
0
1969 70
71
72
73
74
75
76
77
78
79
80
Fiscal Years
Estimate
*Youth Share of Comprehensive Employment and Training Act, Title 1
51
Outlays for Training,Employment and Social Services
$ Billions
$ Billions
20
20
16
16
12
12
Ru bl ic Service Jobs
8
8
4
4
Socia I Services
o
1969 70
71
72
73
74
75
76
Fiscal Years
77
78
79
80
0
Estimate
children. Federal outlays for these programs are estimated to be
$5.1 billion in 1979.
The programs of the Oommunity Services Administration
finance local community action agencies that deliver services to
low-income individuals; these agencies are funded primarily by
other Federal agencies.The Community Services Administration
also supports innovative demonstrations for new ~ethods of delivering services to the poor. In addition, the voluntary programs of
ACTIO~ are being redirected to meet basic human needs. The
Volunteers in Service to America program (VISTA) will increase by approximately 1,200 volunteers, primarily in the areas
of health, community development, energy consen,ration, and
basic human needs, while the university year for action program
will be phased out.
Health
National health needs are to: assure access to quality health
care services with emphasis on the needs of the poor, the aged,
52
and the disabled; restrain inflationary growth in health care costs;
acquire knowledge regarding the causes, prevention, and treatment of disease; support training and education of health workers; and assure consumer and workplace safety.
To achieve these national needs in health, the Federal Government supports the following major ~issions: health care services, health research, education and training of the health care
workforce, and consumer and occupational health and safety.
Federal outlays of $49.7 billion are estimated for these missions
in 1979. The President intends to submit national health -insurance legislation to Congress in 1978. It will not affect Federal
outlays in 1979 and, therefore, no funding is proposed in this
budget.
The mission of financing and providing health care services
represents the largest amount of Federal spending for health,
with an estimated $45.1 billion in outlays in 1979.
The availability and use of new medical services and an increasingly older population account in part for rising health
Outlays for Health
$ Billions
$ Billions
60 --r---~----------------"""-- 60
50
50
40
40
30
30
20
20
Medicare
10
to
/
0-----....- ...........- ....................- .....- - -.....- .... 0,
1969 70 71 72 73 74 75 76
77 78 79 80
Fiscal Years
Estimate
53
spending. Nevertheless, much of the increase has resulted from
health cost inflation. Between 1979 ·and 1983 Federal spending
for the two largest programs in the health care services mission,
medicare and medicaid, would increase an estimated 60ro without cost constraints. The ~dministration has therefore pro'posed
legislation to limit the growth of hospital revenues. This proposal would result in outlay savings of $730 million for the Federal Government in 1979 and $1.3 billion for non-Federal payers.
Outlays for health services for the 27 million aged and disabled medicare recipients are estimated to be $25.6 billion in
1978 and $29.4 billion in 1979, assuming enactment of the administration's proposed legislation. Legislation signed by the
President in 1977 will provide for medicare and medicaid cost
reimbursement for services rendered by physician assistants and
nurse practitioners in rural health clinics.
Legislation to establish a child health assessment program
would expand the :r;nedicaid ·p rogram by extending early and
periodic screening, diagnosis and treatment to an additional 1.7
million low-income children under 21 years ·of age. Another legislative proposal would extend medicaid eligibility to certain
low-income mothers and expectant mothers not currently eligi:
ble for medicaid services. Outlay savings of almost $400 million
for medicaid are projected as a result of proposed legislation to.
permit enhanced quality control efforts. Total medicaid outlays .
are estimated to be $11.0 billion in 1978 and $12.1 billion in 1979
for the 21 million medicaid beneficiaries.
In addition to medicare and medicaid, the Federal Government funds 25 health care services programs, both directly and
through grants and contracts, with estimated 1979 outlays of
$2.8 billion.
An estimated $559 million in outlays will fund medical services
to approximately 647,000 American Indians and Alaska natives.
Outlays for th~ National Health Service Corps are estimated to
be $61 million in 1979 to support 1,725 physicians and other
health workers in 743 sites. An estimated $75 million in Federal
outlays will subsidize the delivery of mental health services at
St. Elizabeths Hospital in the District of Columbia, while a 1978
supplemental budget request of $55 million in budget authority
is pro.posed to renovate Hospital facilities.
A major administration initiative will ·improve and increase
services to prevent unwanted adolescent pregnancies. In 1979,
54
)
budget authority of $100 millio·n is requested for this initiative.
Flexible project grant funds would be used to assist State and
local governments in improving, increasing, and coordinating
family planning and other services to adolescents.
Federal tax laws help the private sector to finance health
care by excluding health insurance premiums paid by employers
from employees' taxable income and by permitting itemized
deductions for health care expenses in excess of a certain level.
The administration is proposing that deductibility of medical
expenses in combination with uninsured casualty losses be limited
to expenses in excess of 10% of income.
The mission of developing new knowledge about the causes,
prevention, diagnosis and treatment of diseases is supported by
Federal funding of biomedical, behavioral, and health services
research. With estimated Federal outlays of $3.8 million in 1979,
the Federal Government currently funds more than 66% of
all health research in this country.
Outlays in 1979 will include an estimated $29 million for
health services research and about $199 million for research
related to mental health, alcohol, and drug abuse, reflecting,
in part, increases recommended by the President's Commission
on Mental Health. The budget request maintains current levels
of effort in major research areas such as cancer, heart disease,
and diabetes, with increased emphasis on basic research ,overall.
Federal outlays for training health professionals are estimated
to decline from $836 million in 1978 to $770 million in 1979.
This reflects the gradual shift away from programs designed to
increase the supply of health workers or to provide institutional
operating subsidies to programs that emphasize geographic distribution of physicians and other health workers. Capitation
grants, based on enrollment in health professions schools, will be
. phased out over a 3-year period starting in 1979. Federal support
for health p,rofessions training will focus primarily on service
commitment scholarships. The health professions guaranteed
loan program represents a more equitable means of financing
the training of individuals who have a high rate of return on
their education_al investment. An estimated $120 million in loan
guarantees will be supported in 1979.
To achieve th.e Federal Government's mission of protecting
consumers from unsafe and defective products and workers from
occupational health hazards, outlays of $887 million are estimated
for 1979.
55
In addition to the prpgrams discussed above, there are a number of Federal programs that are health-related although their
primary purpose is to meet other national needs, such as the
health care systems operated for the military and for veterans.
Income Security
There is a national need to assure a reasonable income for
poor Americans and to insure against the loss of family income
due to unemployment, retirement, disability or death. To achiev~
this need, the Federal Government undertakes the major missions
of providing social security and Federal retirement, survivors
and disability benefits; unemployment compensation to workers
who have lost their jobs; and public assistance and other income
supplements to the poor. Outlays for these missions in 1979 are
estimated·to be $160.0 billion.
Social security is the largest single program in the budget.
Outlays for this program are estimated to be $93.0 billion in
1978 and $103.1 billion in 1979. In 1977, more than 100 million
workers paid $77.8 billion in payroll taxes to finance the program _
and over 33 million people received benefits.
Rapid inflation and high unemployment in recent years, which
raised benefit costs and reduced income to the social security
funds, would have drained the funds' assets by the mid-1980's.
The system was also inadequately financed for the long run. A
technical error in the benefit formula, creating excessive benefit
costs, was compounded by over-optimistic forecasts of population and economic growth, which underestimated long-range
tax requirements. To remedy these problems, the Social Security
Act was amended last year to correct the error in the benefit
formula, to increase payroll taxes, and to make some benefit
provisions more restrictive. Other benefits were liberalized to
improve individual equity. More changes still need to be made.
The administration is proposing new legislation to eliminate the
windfall minimum benefit, place a 3-month limit on retroactive
benefit payments, and limit the amount of student benefits paid
to dependents. Studies will be made on extending social security
coverage to some uncovered workers, and analyzing social security's relationships ·to other retirement systems.
56
In addition to social security, there are other retirement programs that provide income security. Outlays for railroad retirement, which are estimated to be $4.3 billion in 1979, will go to an
estimated 1 million retirees. The budget proposes to freeze initial
windfall benefit amounts for new beneficiaries. Special benefits
are distributed to coal miners who are totally disabled from black
lung and to their survivors, at an estimated $1.0 billion a year
. in outlays.
~
The major tax expenditure provisions for the aged are the
exclusion from income subject to tax of all social security and
almost all railroad retirement benefits, the extra exemption for
taxpayers 65 and over and the tax credit for the elderly. The combined benefits for these tax expenditures are estimated to be $6.2
billion in 1978 and $6.8 billion in 1979.
The President has proposed that a commission be established
to make a comprehensive study of tl1e public and private retirement, survivors and disability issues. O~tlays for Federal retirement and non-work:-related disability are estimated to increase
from $10.5 billion in 1978 to $11.8 billion in 1979. This program is
estimated to have 1.6 million beneficiarIes in 1979. Net outlays
for benefits to Federal employees for job-related injuries, illnesses,
and death are estimated to be $292 million in 1978 and due to
increased reimbursements from Federal agencies, $228 million in
1979. It is estimated that an average of 3 million workers per
week will receive unemployment benefits in 1979. As the economy
improves, outlays for unemployment compensation are estimated
to decline from $12.4 billion in 1978 to $11.8 billion in 1979.
The public assistance and other income supplements mission is
supported by a series of programs that provide funds, food, and
shelter for people in need. A major administration proposal-the
program for better jobs and income-would consolidate the aid to
families with dependent children program, supplemental security
income and food stamp programs to make their administration
more efficient and the benefits more equitable nationwide.
The proposed program will encourage work through a benefit
incentive structure, an expanded earned income tax credit, and
improved job placement services. Up to 1.4 million public service
jobs and training opportunities will be authorized. It will also
provide fiscal relief to the States, and tax relief through the
earned income tax credit to the poor and near poor. The cash
57
benefit portion of this program will become effective in July 1981.
As part of the administration's energy legislation, people who do
not pay inco'me tax will receive a refund from the crude oil
equalization tax, totaling an estimated $1.3 billion in outlays in
1979.
Welfare benefits are provided to the aged and disabled
through the supplemental security income program. Outlays
for this program are estimated to be $5.6 billion in 1979. The
recipients of Federal benefits are estimated to be about 3.9
million in 1979.
The aid to families with dependent children program gives
Federal grants to' States for the State-administered public assist ..
ance programs. An estimated 11 million individuals or 3.6 mil ..
lion families are expected to receive benefits in .1979. Federal
outlays are' estimated .to be $6.7 biliion in 1978 and $6.8 billion
in 1979.
The food stamp program was designed to assure the needy .an
opportunity to purchase food for an adequate diet and to
strengthen the agricultural sector of the economy. Outlays for
Outlays for Income Security
$ Billions
$ Billions
200~~~~--~~---------------------------200
150
150
Unemployment
Insurance
100
100
50
50
Public Assistance *
o
1969 70
0
71
72
73
74
75
76
77
78
79
Fiscal Years
Estimate
*Includes Other Income Assistance Such as Food Stamps, 551, and AFDC
58
80
this program are estimated to be $5.7 billion in 1979. Recently
enacted legislation provided for improvements in the current programs such as eliminating the need to buy food stamps. The proposed program for better jobs and income woul~ provide money
instead of food stamps to welfare recipients.
Outlays for school luncll and other nutrition programs are
estimated to be $3.5 billion in 1979. Proposed legislation will seek
to provide more resources for the women, infants, and children
program by modifying the automatic cost-of-living increases in
food subsidies for nonneedy children.
Subsidized housing programs help to provide low-income
families an opportunity to secure decent housing. These programs
provide rental subsidies, public housing, and homeownership
assistance. The administration's proposal would assist an additional 450,000 low-income families in 1979, about 10% more
than in 1978. In addition, a new operating subsidy for troubled
FHA-insured multifamily projects is being -p roposed for 1979.
Total outlays for all housing assistance programs are estimated .
to rise from $3.0 billion in 1977 to $3.8 billion in 1978 and $4.4
billion in 1979. This is an annual rate of increase of 22ro.
Low-income families with dependents are eligible for a tax
credit equal to 10% of earned income with a maximum credit of
$400. This is a tax expenditure of $1.2 billion in both 1978 and
1979. This credit will be substantially increased as a part of
welfare reform. There are other programs that are income
security related, but serve other missions and national needs. The
most important of these programs are the veterans pension program and military retirement benefits.
Veterans BeneFits and Services
The national needs for veterans of draft and wartime service
are: to return to civilian life after separation from military service
on a basis comparable with their peers who .d id not serve; to receive compensation and medical care for disabilities that result
from military service; and, if in need, to receive financial assistance for themselves, their depeqdents, and their survivors.
To help meet these needs of veterans, the Federal Government
provides income security; education, training, and rehabilitation;
hospital and medical care; housing; and other benefits and serv-
59
Outlays for Veterans Benefits and Services
$ Billions
$ Billions
21~----~~~------------------~--------~21
18
18
15
15
12
12
9
9
6
6'
3
3
Hospital and Medical Care
o
1969 70
. Fisca I Years
0
71
72
73
74
75
76
77
78
79
80
Estimate
ices. Outlays for these missions are estimated at $19.3 billion in
1979.
The mission of income security for veterans is largely supported
by veterans compensation and pension programs. Compensation
benefits, provided to veterans \vith service-connected disabilities
and their survivors, are estimated at $6.5 billion for 2.6 million
beneficiaries in 1979. Pensions are provided to needy wartimeservice veterans, their d~pendents, and survivors. An estimated
2.3 million veterans and their survivors will receive $3.3 billion
in pension benefits in 1979.
The GI bill provides education benefits designed primarily to
assist veterans who entered military service before 1977 readjust
to civilian life. The demand for these benefits is expected to continue to decline as Vietnam veterans pass beyond the period of
eligibility. Thus, outlays are estimated to declin~ from $3.1 billion
in 1978 to $2.6 billion in 1979. These estimates assume enactment
of proposed legislation to end enrollments in general flight training and correspondence courses, resulting in savings of $100 million in 1979.
60
The Veterans Administration operates the largest nationwide
medical care system. In 1979, the VA will increase its emphasis
on the care of veterans with service-connected disabilities, Vietnam veterans and the rapidly growing population of elderly veterans. New initiatives in 1979, which include pilot programs for
the treatment of drug and alcohol abuse and for mental and
psychological services, will meet the special .needs of veterans of
Vietnam. Outlays for VA medical programs will reach an estimated $5.8 billion in 1979.
Administration of Justice
I
National needs for justice include: representation of the public
in legal matters, the provision of fair and prompt prosecution
and trial procedures, and the provision of assistance to State and
local criminal justice systems. Other needs in this functional area
include the enforcement of Federal statutes and the provision of
adequate correctional facilities. To help achieve our national
needs related to the administration of justice, the Federal Government supports the following major missions: Federal law
enforcement activities, litigative and judicial activities, Federal
correctional activities, and criminal justice assistance. Estimated
outlays for these activities are $4.2 billion in 1979.
Law enforcement activities represent the largest component of
Federal expenditures for the administration of justice-an esti~
mated $2.0 billion in outlays in 1979. Efforts are being made to
apprehend and to prosecute major offenders engaged in organized
crime, public corruption, white collar crime, and drug trafficking-especially those who deal in heroin.
In August 1977, the President announced major policy initiatives d,esigned to reduce the number of undocumented aliens and
to provide equitable treatment of those undo,c umented_ aliens
already in this country. The 1979 budget requests significant
increases in budget authority for personnel and equipment for
the U.S. Customs Service and for the Immigration and ~aturali
zation Service-the two agencies principally responsible for border enforcement. A reorganization of the border management
agencies is under consideration. Other requests in support of the
President's program will be made upon enactment of the required
authorizing legislation.
61
~
Outlays for Administration of Justice
$ Billions
$ .Billions
5~----~~--------~----------------------~5
4
4
I
3
Criminal Justice Assistance
3
2
Federal Correctional
Activities
2
Federal Litigatjve
and Judicjal Activities
1
1
Federal Law Enforcement
Activities
o
1969 70
0
71
72
73
74
75
76
77
Fiscal Years
78
79
80
Estimate
Staff increases are proposed to meet the increasingly complex
and growing caseload in the U.S. attorneys' offices and in several
of the legal divisions of the Department of Justice.
Two new Federal correctional facilities are proposed to relieve
overcrowding in ..existing institutions and to permit the closing of
an old, substandard prison. In addition, the use of minimum security facilities and community treatment centers will be emphasized to reduce costs and to relieve overcrowding.
The administration plans a major restructuring of law enforcement assistance programs and justice research activities;
specific proposals will be presented in the next few months. Outlays for State and local criminal justice assistance will be $0.7
billion in 1979, and funds will be reallocated from planning
grants to program grants.
General Government
Much of what is classified under general government may be
considered as general support for other national needs. Y et in this
62
r
category, there are two national needs that can be clearly defined:
the provision of a legislative system that reflects the views and
preserves the rights of the people, and the provision of effective
and efficient central executive policy development and management. To achieve these national needs in general government, the
Federal Government undertakes the major missions of legislative functions, executive direction and management, central fiscal
operations, general property and records management, central
personnel management, and other general government. Outlays
for these missions are estimated to be $4 ..3 billion in 1979.
The President has been granted special authority by Congress
in the Reorganization Act of 1977 to reorganize the Government
in order to provide a more efficient and responsive executive
branch. Various plans dealing with a wide range of Government functions will be submitted to Congress.
Outlays for the major mission of central fiscal operations are
estimated at $2.4 billion in 1979. These estimates reflect proposed
staff increases in the Internal Revenue Service to improve taxpayer service and to audit and process an increasing number of
tax returns.
In November 1977, the Federal personnel management project
team completed a major study of the civil service system. As a
result, proposals to reform the current civil service system will be
sent to the Congress during 1978.
General Purpose Fiscal Assistance
There are national ,n eeds to support the federal system by sharing Federal revenues with State and local jurisdictions and to
reduce the impact of economic fluctuations on States
. and localities. To achieve these needs, the Federal Government carries out
the major missions of general revenue sharing and other general
purpose fiscal assistance ~ Estimated outlays of $9.6 billion are
requested for these missio·ns in 1979 .
. Through general revenue sharing, the Federal Government
provides funds to virtually every unit of general government below
the ·Federallevel. Each jurisdiction may spend the money for any
purpose permissible under its own State and local laws, subject
to minimal Federal controls. Outlays for revenue sharing are
estimated at $6.9 billion in 1979.
63
,The antirecession fiscal assistance program, which was enacted
to assist jurisdictions in counteracting the impact of recession, will
apportion $1.6 billion to States and localities in 1978. This program is presently authorized through September 30, 1978, the
administration will request extension.
New York City is authorized to receive $2.3 billion in loans
through June 1978. These loans by the Treasury are purchased
by the Federal Financing Bank, an off-budget Federal entity, and
therefore do not show as budget outlays. All such loans
must be repaid in·full by the city at the end of its fiscal year. The
administrative cost of seIVicing these loans is shown in the budget.
Tax expenditures also provide financial assistance to State and
local governments. The exemption from taxable income of interest received on State and local securities has a twofold effect:
State and local governments can borrow at lower interest rates,
saving an estimated $6.0 billion in 1979, while individuals can
exclude the interest income from their Federal taxes. Estimated
losses to the Treasury in 1979 under existing legislation are $5.0
billion. In addition, the deductibility of most State and local taxes
Outlays for General Purpose Fiscal Assistance
$ Billions
10
10
8
8
6
6
4
4
2
2
o
0
1969 70
Fiscal Years
64
$ Billions
71
72
73
74
75
76
77
78
79
Estimate
80
from Federal taxable income is estimated to cost the Treasury
approximately $13.7 billion in 1979.
The administration proposes the introduction of a taxable bond
option for State and local governments. Under this provision the
Federal Government would pay a percentage of the interest costs
of those jurisdictions that agree to issue taxable rather than taxexempt securities. Enactment of this provision would reduce the
tax expenditure for tax-exempt securities. The President's tax
reform proposals in 1978 include repealing the deductibility of
State and local gasoline excise taxes, sales taxes,' and certain miscellaneous taxes. These proposals, along with proposed lower tax
rates, would reduce the tax expenditures associated with the deductibility of State and local taxes to $9.0 billion in 1979.
Interest
Budget outlays for the interest function are estimated to rise by
$5. 7 billion in 1978 to a level of $43.8 billion and by another
$5.2 billion in 1979, reaching a level of $49.0 billion. These increases result primarily fro'm financing unified budget deficits
of $62 billion in 1978 and $61 billion in 1979. Interest outlays
also include costs of bOT rowing attributable to the outlays of offbudget Federal entities.
[In billions of dollars]
1977
actual
1978
estimate
1979
estimate
O'u tlays for the interest function ...............
Less: Interest received by trust funds ........
38. 1
8. 1
43. 8
8.6
49.0
9. 1
Net interest ..........................
Less: Deposi t of earnings, Federal Reserve
System (budget receipts) .................
30.0
35.2
39.9
5. 9
6.2
6. 3
24. 1
29.0
33.6
Net impact . ..........................
Interest paid on Government securities held by certain trust
funds is included in outlays for this function, but is deducted in
calculating budget totals, sihce these payments are within the
Government and do not reflect transactions with the public. As
the table above shows, this deduction reduces interest outlays by
$8.6 billion in 1978 and $9.1 billion-in 1979 to a net interest total
of $35.2 billion in 1978 and $39.9 billion in 1979. In addition, the
Federal Reserve banks hold Government securities as part of
their monetary responsibilities. These banks return most of the
65
interest income on these securities to the Treasury as budget receipts. The estimated amounts of the receipts are $6.2 billion in
1978 and $6.3 billion in 1979. If this deposit of earnings is deducted from net interest outlays, the net impact-the amount of
interest that must be paid to the public from receipts or additional borrowing-will be an estimated $29.0 billion in 1978 and
$33.6 billion in 1979.
.
Other
Allowances.-Allowances are included in the budget for probable civilian agency pay raises, future initiatives, and' unforeseen
•
•
contIngencIes.
By law, Federal pay is annually adjusted on the basis of comparability with the private sector. The President has asked business and labor to cooperate in a voluntary program to decelerate
wage and price increases. Every effort is to be made to hold wage
and price increases in 1978 significantly below those in the prior
year. The President intends to keep this criterion in mind ·when
he reviews the October 1978 pay raise recommendations of the
President's pay agent, the Federal Employees Pay Council, and
the Advisory Committee on Federal Pay, and after a review of
the economic situation at the time. The President's final decision
will be made in late summer.
. As part of the overall effort to hold down inflationary trends,
Federal agencies will be required to limit additional funds
requested .to cover the pay increase to no more than 6%.
Undistributed offsetting receipts.-In general, offsetting receipts are deducted from specific budget items. Exceptions are
made where it would be misleading or difficult to make the deduction against one particular function. These exceptions are:
• Employer share, employee retirement, composed of payments by Federal agencies to retirement funds of their
employees; estimated to be $5.2 billion in 1979.
• Rents and royalties on the Outer Continental Shelf paid to
the Government on leases of Federal lands expected to contain oil and natural gas. The budget projections assume five
new sales of leases in 1979, on the assumption that the stringent requirements of the National Environmental Policy
Act will be met within the planned time period. These new
sales, and receipts from existing activities, are estimated to
total $1.8 billion in 1979.
66
PART IV
THE BUDGET PROCESS
The budget sets forth the President's proposed financial plan
of operation for the Federal Government for the coming fiscal
year. In raising tax revenues and spending them, the Federal
Government allocates resources between the private and public
sectors of the economy. Within the public sector, the -distribution
of outlays among individual programs reflects the priorities that
are d ermined through the interaction of the President, the
executive branch agencies, and the Congress. The budget process
is thus a crucial focus for the determination of national priorities.
This section describes that process, and its four interrelated
phases: (1) .executive formulation and transmittal, (2) congressional action, (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 is the result of
many months of planning and analysis throughout the executive
branch. Formulation of this budget, transmitted to the Congress
in January 1978, began in the spring of 1977. Each spring, policy
issues are identified, budget projections are made, and preliminary program plans are presented to the President. Zero-base
budgeting, a new management process, was used for the first
time in preparing the 1979 budget.
The President reviews the budget projections in the light of
the economic outlook, and establishes general budget and fiscal
policy guidelines for the fiscal year that begins over a year later,
on October 1, and for 2 years beyond. Tentative policy determinations and planning ceilings are then given to the agencies for the
preparation of their budgets.
In the summer, agencies formulate their proposed ZBB
budgets, which are reviewed in detail in the fall by the Office of
Management and Budget anq presented to the President in the
context of overall fiscal policy issues. The budget transmitted to
Congress thus reflects the President's recomrpendations for individual programs, as well as total outlays and receipt levels
67
appropriate to the state of the economy. Supplemental budget
requests and amendments may be submitted later to cover needs
unforeseen or for which sufficient planning was not completed
at the time the budget was formulated.
As a result of the Congressional Budget Act of 1974, the
President must update this budget on or before April 10 and
July 15, taking into account newly enacted legislation, new executive branch recommendations, and new economic assumptions.
The act also requires him to transmit current services estimates
for the coming fiscal year. These estimates are projections of
the budget authority and outlays required to continue existing
programs in the upcoming fiscal year without any policy changes,
thereby providing a base to compare program initiatives against
current spending "levels. Current services estimates for fis. I year
1979 are being transmitted with the President's budget.
Congressional action.-The Congress, which can act as it
wishes on the President's budget proposals, begins its formal
review of the budget when the President transmits his budget in
January. Before considering ap'p ropriations for a specific program, the Congress first enacts legislation that authorizes an
agency to carry out that program. Such legislation authorizes
budget authority for the program and frequently sets a limit on
the amount.
Many programs are authorized for several years, OJ;' indefinitely; others require annual authorization. The granting of
budget authority usually is a separate, subsequent action to program authorization. In many cases, budget authority :becomes
available each year only as voted by the Congress. In other cases,
the Congress has voted permanent budget authority, under which
funds become .available annually without further congressional
•
actIon.
Under procedures mandated by the Congressional Budget Act
of 1974, the Congress considers budget totals prior to completing
action on individual appropriations bills. ·The act requires that
the House and Senate Budget Committees receive reports on
budget estimates from all other congressional committees by
March 15, and a fiscal policy _report from the Congressional
Budget Office by April 1. By May 15, the Congress adopts a
concurrent resolution containing budget targets. ' By September 15, the Congress completes action on setting budget ceilings,
and by September 25, the Congress completes action on any
required reconciliation bill or resolution.
68
CONGRESSIONAL BUDGET TIMETABLE
Action to be completed
On or before:
15th day after Congress convenes _____________________ President transmits his budget.
March 15____________________ Committees submit reports to budget
committees.
April 1______________________ Congressional Budget Office submits
report to budget committees.
April 15_____________________ Budget committees report first concurrent resolution on the budget to
their Houses.
May 15______________________ Committees report bills authorizing
new budget authority.
May 15______________________ Congress completes action on first
concurrent resolution on the
budget.
7th day after La:bor Day________ Congress completes action on bills
providing budget authority.
September 15_________________ Congress completes action on second concurrent resolution on the
budget.
September 25--_______________ Congress completes action on reconciliation bill or resolution, or both,
implementing second concurrent
resolution.
October 1____________________ Fiscal year begins.
Congressional consideration of requests for appropriations and
for changes in revenue laws follows an established pattern. They
are considered first in the House of Representatives, where the
Ways and Means Committee reviews proposed revenue measures and the Appropriations Committee studies the proposals for
appropriations. These committees then recommend the action to
be taken by the House of Representatives. As the appropriations
and tax bills are approved by the House, they 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 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. ,At the start of fiscal year 1978, Congress
had not completed action on the regular appropriation in the
69
Labor-HEW and District of Columbia appropriations bills. The
agencies affected by these bills had to operate under continuing
resolutions.
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 arid
Budget under an apportionment system designed to assure the
effective and orderly use of available authority.
The Impoundment Control Act of 1974 provides that the
executive branch, in regulating the rate of spending, must report
to the Congress any deferrals or proposed rescissions of budget
authority-that is, any effort through administrative action to
postpone or eliminate spending authorized by law. Deferrals,
which are temporary withholdings of budget authority, cannot
extend beyond the end of the fiscal year, and may be overturned
by either House of the Congress at any time. Rescissions, which
permanently cancel existing budget authority, must be enacted
by the full Congress. If Congress does not approve a proposed
rescission within 45 days of continuous session, the withheld funds
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 pro'g ram and financial reports,
and the General Accounting Office, a congressional agency,
regularly audits, evaluates, and reports on Federal programs.
70
Relation of Budget Authority to Outlays
Not all of the new budget authority for 1979 will be obligated
or spent in that year.
• Budget authority for most major trust funds is equal to
receipts and is used as needed for purposes specified by law.
• Budget authority for many construction and procurement
programs covers the estimated full cost of projects at the
time they are started, although the outlays will occur over
a number of years as work on the projects progresses.
• Budget authority for subsidized housing programs equals the
maximum Federal payment expected under new authority
to make contracts, which may extend up to' 40 years.
• Budget authority for many loan and guaranteed or insurance
programs also prov~des financing for a period of years or
represents a contingency backup.
As a result of these factors, a substantial amount of budget
authority carries over from one year to the next. Most of this is
earmarked for specific uses and is not available for any other
program.
Relation of Budget Authority to Outlays - 1979 Budget
Figures in brackets represent Federal funds
To be spent in 1979
New Authority
Recommended
for 1979
568.2
360.6
[279.5 J
t
•
[ 435.8J
Outlays
in 1979
500.2
[ 363.6J
[414.8] ;
• Unspent Authority
Enacted in
Prior Years
614.0
$ Billions
on~y
-
To be spent in
Future Years
471.9
[349.2J
Unspent Authority
for Outlays in
Future Years
679.5
•
[484.5J
NOTE: The difference between the total budget figures and federat funds shown in brackets
consists of trust funds and interfund transactions between fund groups.
71
PART V
I
BUDGET TABLES
Page
1.
2.
3.
4.
5.
6.
7.
8.
9.
Budget Receipts, Outlays, and Debt, 1970-79. . . . . . . . . . . . . . . .
Budget Receipts by Source and Outlays by Function, 1969-79..
Budget Outlays by Function and Subfunction, 1969-79... . . . . .
Composition of Budget Outlays in Current and Constant (fiscal
year 1972) Prices, 1956-79.............................
Budget Authority and Outlays by Agency. . . . . . . . . . . . . . . . . . .
Outlays and Receipts of Trust Funds. . . . . . . . . . . . . . . . . . . . . . .
Federal Finances and the Gross National Product, 1956-79. . . .
Summary of Full-Time Permanent Civilian Employment in the
Executive Branch. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Budget Receipts and Outlays, 1789-1979. . . . . . . . . . . . . . . . . . . .
73
74
76
83
84
86
87
88
89
NOTES
• 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 9 of the Budget of the
United States Government, 1979.
72
Table 1. BUDGET RECEIPTS, OUTLAYS, AND DEBT, 1970-79 (in billions of dollars)
Description
Actual
1970
1971
Receipts and outlays: 1 2
Receipts:
Federal funds ........................
Trust funds. . . . . . . . . . . . . . . . . . . . . . ....
Interfund transactions .................
143.2
59.4
-8.8
Total budget receipts ...............
193.7
188.4
Outlays:
Federal funds ........................
Trust funds .........•................
In terfund transactions .................
156.3
49. 1
-8.8
163. 7
59.4
-11. 6
Total budget outlays ................
196.6
211. 4
1972
133.8
148.8
73.0
66.2
-11. 6 -13.2
208.6
1973
161. 4
92. 2
-21. 3
Estimate
1974
1975
181. 2
187.5
104.8
118.6
-21. 1 -25.1
1976
TQ
200. 3
133. 7
-34.8
54.0
32. 1
-4.4
232. 2
264.9
281. 0
299. 2
81. 7
178. 1 187.0
67. 1
81. 4
-13.2 -21. 3
199.9
90.8
-21. 1
240.0
Ill. 2
-25.1
269. 1
131. 3
-34.8
65.0
34.0
-~. 4
269.6
326. 1
365.6
94. 7
232.0
---
247. 1
--Outlays, off-budget Federal entities . ....... ( ..... ) ( ..... ) ( ..... )
(1.4)
(. 1)
(8. 1)
(1. 8)
(7. 2)
Outlays including off-budget Federal entities. (196. 6) (211.4) (232. 0) (247. 1) (271. 1) (334. 1) (372.9) (96. 4)
Surplus or deficit (-):
Federal funds. . . . . . . . . . ... . . . . . . . . . . .. -13.1 -29.9 -29.3 -25.6 -18.7 -52.5 -68.9 -11. 0
Trust funds ..........................
10. 3
6. 8
5.9
14.0
7.4
2.4
-2.0
10. 7
Total surplus or deficit (-) ..........
-2.8
-23.0
-23.4
-14.8
-4.7
-4-5.1
-66.4
-13.0
1977
1978
1979
240.4 267. 9 289. 1
152.8
168.5 188. 0
-36.3 -36.0 -37.5
356. ·9
400.4 439.6
294. 9 340.0 363.6
143.3
158. 2 174. 1
-36.3 -36.0 -37.5
401.9
462.2
500.2
(8.7) (11. 5) (12. 5)
(410. 6) (473. 7) (512. 7)
-54.5 -72.1 -74.5
9. 5
10.3
13. 9
-45.0 -61. 8 -60.6
Surplu. s. or deficit (-), off-budget Federal
entltles . .......................... ( ..... ) ( ..... ) ( ..... ) (-.1) (-1. 4) (- 8. 1) (-7. 2) (-1. 8) (- 8.7) (-11.5)(-12. 5)
Surplus or deficit (-) including off-budget
Federal entities . ................... ( - 2. 8) ( - 23. 0) (- 23. 4) ( -14. 9) ( - 6. 1) ( - 53. 1) ( - 7~. 7) ( - 14. 7) (-53.7) (-73. 4)(-73. 1)
Outstanding debt, end of year:
Gross Federal debt. .............. ' .......
Held by:
Government agencies .................
The public ..........................
Federal Reserve System .............
Others ............................
'-l
~
382.6
409. 5
437. 3
468.4
486.2
544.1
631.9
646. 4
709. 1
785. 6 873. 7
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
147.2
396. 9
85.0
311. 9
151. 6
480. 3
94. 7
385.6
148.
498.
96.
401.
157.3
551.8
105.0
446.8
167.7 182. 8
617.8 690.8
1
3
7
6
NA
NA
NA
NA
NA=Not available.
The amounts of earned income credit in excess of tax liabilities are shown as negative budget receipts rather than as budget outlays. Accordingly, the budget totals have been
adjusted retroactively.
2 The 1975-77 data have been revised retroacti vely to include the housing for the elderly or handicapped fund in the unified budget instead or with the off-budget Federal entities.
1
Table 2. BUDGET RECEIPTS BY SOURCE AND OUTLAYS BY FUNCTION, 1969-79 (in billions of dollars)
Description
Estimate
Actual
1969
1970
1971
1972
1973
1974
1975
1976
TQ
1977
1978
1979
I
RECEIPTS BY SOURCE 3
Individual income taxes ...........
Corporation income taxes ..........
Social insurance taxes and contributions ..........................
Excise taxes. . . . . . . . . . . . . . . . . . . . . .
Estate and gift taxes ..............
Customs duties ...................
Miscellaneous receipts .............
87.2
36. 7
90.4
32.8
86.2
26.8
94. 7
32.2
103.2
36.2
119.0
38.6
122.4
40.6
130.8
41. 4
38. 7
8.5
156. 7
54.9
178. 8
58. 9
190. 1
62.5
39.9
15.2
3.5
2. 3
2.9
45. 3
15. 7
3.6
2.4
3.4
48.6
16.6
3. 7
2.6
3.9
53.9
15.5
5.4
3. 3
3.6
64.5
16. 3
4.9
3.2
3.9
76.8
16.8
5.0
3. 3
5.4
86.4
16.6
4.6
3. 7
6. 7
92. 7
17.0
5.2
4. 1
8.0
25.8
4.5
1.5
1.2
1.6
108.7
17.5
7. 3
5. 2
6.5
124. 1
20.2
5.6
5. 8
6.9
141. 9
25.5
6. 1
6.4
7. 2
Total budget receipts ......
187.8
193.7
188.4
208.6
232.2
264.9
281. 0
299.2
81.7
356.9
400.4
439.6
79.4
4.6
78.6
4.3
75.8
4. 1
76.6
4. 7
74.5
4.0
77.8
5.6
85.6
6.9
89.4
5.6
22.3
2.2
97.5
4.8
107.6
6. 7
117. 8
7. 7
5.0
1.0
2.8
5.8
.5
6.5
4.5
1.0
3.0
5.2
2. 1
7.0
4.2
1.0
3.9
4.3
2.3
8. 1
4.2
1.3
4.2
5. 3
2.2
8.4
4.0
1.2
4. 7
4.9
.9
9. 1
4.0
.8
5. 7
2.2
3.9
9.2
4.0
2.2
7.3
1.7
5.6
10.4
4.4
3. 1
8. 1
2.5
3.8
13.4
1.2
.8
2.5
.6
1.4
3. 3
4. 7
4.2
10.0
5.5
-*
14.6
4.8
7.8
12. 1
9. 1
3.5
16.3
5. 1
9.6
12.2
5.4
3.0
17.4
1.5
2.4
2.8
3.4
4.6
4. 1
3. 7
4. 7
1.3
6. 3
9.7
8. 7
OUTLAYS BY FUNCTION34
National defense I ................
In terna tiona. I aft airs. . . . . . . . . . . . . . .
General SCIence, space, and technology ........................
Energy ..........................
Natural resources and environment. .
Agricul ture ......................
Commerce and housing credit ......
Transportation ...................
Community and regional developmen t .•.......................
Education, training, employment, and
social services. . . . . . . . . . . . . . . . . .
Health ..........................
Income sec~ri ty. . .... ., ...........
Veterans benefits and services. . ....
Administration of justice .......... .
General govern men t. . ............
General purpose fiscal assistance ....
In terest .........................
Allowances 2 ••.• .• .•••••••••••.••
Undistributed offsetting receipts ....
Total budget outlays .......
7. 5
11. B
37. 3
7.6
.8
l.6
.4
15.8
13. 1
43. 1
8. 7
l.0
l.9
.5
18.3
9.8
14. 7
55.4
9.8
l.3
2. 2
.5
19.6
-5.5
-6.6
184.5
196.6
B.6
12. 5
17.5
63.9
10. 7
l.6
2.5
.7
20.6
12. 7
18.8
73.0
12.0
2. 1
2. 7
7.4
22.8
12.3
22. 1
84.4
13.4
2.5
3. 3
6.9
28. I
..... .
......
......
-8.4
-8.1
-12.3
-16.7
211.4
232.0
247. 1
269. 6
. . . . . . . . . . . . ......
15.9
27.6
108.6
16.6
2.9
3. 1
7. 2
3l. 0
33.4
126.6
18.4
3. 3
2.9
7.2
34.6
5.2
8. 7
32. 7
4.0
.9
.9
2. 1
7.2
21. 0
38.8
137.0
18.0
3. 6
3.4
9. 5
38. 1
27. 5
44. 3
147.6
18. 9
4.0
4. 1
9. 9
43.8
-14. 1
-14.7
-2.6
-15.1
-15.6
30.4
50.0
160.0
19.3
4.2
4. 3
9. 6
49.0
2.8
-16.0
326. 1
365.6
94.7
401. 9
462.2
500.2
lB. 7
. . . . . . . . . . . . . . . . . . . . . . . . ......
• $.50 million or less.
Includes civilian and military pay raises for the Department of Defense.
Includes allowances for civilian agency pay raises and contingencies for relatively uncontrollable programs and other requirements.
3 The amounts of earned income credit in excess of tax liabilities are shown as negative budget receipts rather than as budget outlays. Accordingly, the budget totals have been
adjusted retroactively.
, The 197;'}-77 data have been revised retroactively to include the housing for the elderly or handicapped fund in the unified budget instead of with the off-budget Federal entities.
1
2
Table 3. BUDGET OUTLAYS BY FUNCTION AND SUBFUNCTION: 1969-79 (in billions of dollars)
'-J
0')
Function and subfunction
National defense:
Departmen t of Defense-Military:
Mili tary personnel. . .. . . . . . . . . .
Retired military personnel. . . . .
Operation and maintenance ....
Procuremen t. . . . . . . . . . . . . . . . .
Research and development .....
Military construction and other 1
Deductions for offsetting receipts
Actual
1969
21-.4
2.4
22.2
24.0
7.5
.5
1970
1971
1972
1973
-.1
23.0
2.8
21. 6
21. 6
7. 2
1. 1
-.1
22.6
3.4
20.9
18.9
7.3
1.6
-.1
23.0
3. 9
21. 7
17. 1
7.9
1.7
-.1
23.2
4.4
21. 1
15. 7
8. 2
.9
-.1
Subtotal, Department of Defense-Mili tary. . . . . . . . . . .
Atomic energy defense activities ..
Defense-related activities .........
Deductions for offsetting receipts ..
77.9
1.4
.2
-*
77. 2
1.4
-*
-*
74.5
1.4
-.1
-*
75. 2
1.4
*
-*
73. 3
1.4
-.2
-*
Total national defense .....
79.4
78.6
75.8
76.6
3. 1
.7
.4
2.9
.6
.4
2.9
1.0
.4
.2
.4
-.2
.2
.4
-.2
4.6
.9
2.9
International affairs:
Foreign economic and financial
assistance ....................
Mili tary assistance ..............
Conduct of foreign affairs ........
Foreign information and exchange
activi ties ....................
International financial programs ..
Deductions for offsetting receipts ..
Total international affairs .. .
Estimate
1974
1976
TQ
1977
1979
1978
25.0
6.2
26.3
16.0
8. 9
2. 8
-.2
25. 1
7.3
27. 8
16.0
8.9
3.0
-.2
6.4
1.9
7. 2
3.8
2.2
.4
*
25. 7
. 8.2
30.6
18. 2
9. a"
3. 3
-.2
26.8
9. 2
33.5
21. 5
10. 7
3. 8,..
26.9
10. 1
36. 5
24.2
11. 9
6.0
-.3
77.6
1.5
-1. 3
-*
85.0
1.5
-.9
-*
88.0
1.6
-.1
-*
21. 9
.4
-*
*
95. 6
1.9
-.1
*
105. 3
2. 3
*
*
115. 2..
2.5
*
-*
74.5
77.8
85.6
89.4
22.3
97.5
107.6
117.8
3. 2
.7
.5
2.9
.9
.5
2. 9
1.3
.6
3. 7
1.9
.7
3.6
1. 1
.7
1.5
.9
.3
4.2
.5
1.0
5. 3
.5
1. 1
5.4
.5
1.2
.2
-.2
-.3
.3
.3
-.3
... 3
.2
-.6
.3
.7
-.2
.3
.6
-.3
,.4
.2
-.4
.1
-.5
-.2
.4
-.8
-.4
.4
*
-.5
.5
.7
-.6
4.3
4.1
4.7
4.0
5.6
6.9
5.6
2.2
4.8
6.7
7.7
.9
2. 3
1.0
2.0
1.0
1.9
1.0
1.7
1.0
1.7
1.0
1.7
1.0
2.0
.3
.5
1. 1
2. 3
1.2
2. 2
1.3
2. 3
,
23. 7
5. 1
22. 5
15.2
8.6·
2.6
-.2
1975
-.
~
.
General SCience, space, and technology:
.
General science and basic research.
Space flight ....................
I
.
Space SCIence, applications, and
technology. . . . . . . ............
Supporting space activities .......
Deductions for offsetting receipts ..
.8
.4
-*
.9
.4
-*
.8
.4
-*
1.0
.3
-*
1.0
.3
-*
·9
·3
-*
1.0
.3
-*
1.0
.4
-*
Total general science, space,
and technology. . . . . . . . . .
5.0
4.5
4.2
4.2
4.0
4.0
4.0
.9
.8
·9
1. 1
.9
.
1.7
Energy:
Energy supply .................
Energy conservation ............
Emergency energy preparedness ..
Energy inforrnation, policy, and
regula tion. . . . . . . . . . . . . . . . . . .
Deductions for offsetting receipts ..
Total energy. . . . ..........
Natural resources and environment:
Water resources. . . . . . . . . . . . . . . .
Conservation and land man agemen t . . . . . . . . . . . . . . . . . . . . . . .
Recreation resources ............
Pollution control and abatement ..
Other natural resources .........
Deductions for offsetting receipts ..
~
·. . . .. · . .. . . · . . . .. · . .. .. · . . . . .
*
· .. .. . · . .. . . · . . . . . · . . ... · . . ... .... . .
·1
.1
·2
.2
.2
·3
·1
1.0
.4
-*
1.2
.4
-*
4.4
1. 2
4.7
4.8
5. 1
.6
......
2.5
.1
. .. .. .
*
*
3.3
·1
·1
4.2
.6
2.3
4. 1
1.4
3. 3
.4
.6
·1
·7
-*
.8
-*
.9
-.1
4.2
7.8
9.6
*
·.. . . . ·... .. · ..... · ... . . ·.. .. . . . . . .. . . . .. . ... .. . . .. .. .
.8
3. 1
1. 0 . 1.0
1.0
1.3
.8
2.2
1.2
1.6
1.6
1.8
2.0
2.3
2.3
2. 7
2.8
.8
3.2
3. 7
3.4
.6
.4
·3
.4
-.4
.7
.4
.4
.4
-.5
.9
·5
·7
·5
-.5
.8
.5
.8
.6
-.5
.7
.6
1. 1
.6
-.5
·7
·7
2.0
·7
-.7
1.3
.8
2.5
.8
-.8
1.2
.9
3. 1
.9
-.8
·5
·3
1. 1
.2
-.4
1.3
1.0
4.3
1.0
-.8
2. 1
1.3
4.9
1.2
-1. 1
1.6
1.5
5.6
1.3
-1.2
2.8
3.0
3.9
4.2
4.7
5.7
7.3
8. 1
2.5
10.0
12.1
12.2
Agriculture:
Farm income stabilization .......
Agricul tural research and services.
Deductions for offsetting receipts ..
5.3
·5
4.6
.6
3. 7
.6
4.6
.7
4. 1
.8
1.5
.8
.8
.9
1.6
.9
·3
.2
4.5
1. 1
*
*
*
*
*
*
*
*
*
*
7.9
1.2
*
4.2
1.3
-*
Total agriculture ..........
5.8
5.2
4.3
5.3
4.9
2.2
1.7
2.5
·6
5.5
9. 1
5.4
Total natural
resources and
.
environment ............
'-l
·5
-*
1.0
.3
-*
.3
See footn.otes at end of table.
---
'-l
co
Table 3. BUDGET OUTLAYS BY FUNCTION AND SUBFUNCTION: 1969-79 (in billions of dollars)-Continued
Function and sub function
Actual
1969
1970
Commerce and housing credit:
Mortgage credit and thrift insurance ........................
Postal Service ................. .
Federal Financing Bank .........
Other advance men t and regulation
of commerce. '. ' ..............
Deductions for offsetting receipts ..
. .. .. .
Total commerce and housing
credit. . ................
Transportation:
Groun d transportation. . . . . . . . . .
Air transportation ..............
Water transportation ............
Other transportation ............
Deductions for offsetting receipts.
-.6
.9
1971
1972
1973
Estimate
1974
1975
.1
1.5
-.3
2.2
. .. ... . .....
......
. .. ...
. .. .. .
. .. .. .
.2
.5
. '5
*
*
.6
-.1
.7
*
.5
-.1
.5
2. 1
2.3
2.2
4.4
1.2
.9
4. 7
1.4
.9
5.2
1.8
1. 1
5.4
1.9
1. 1
*
-*
*
-*
*
1.8
*
-*
*
-*
-1.2
1.6
1.5
1.7
TQ
1976
2.8
1.9
1.2
1.7
1977
. .... .
.3
.9
. .. .. .
-3.3
2. 3
-.1
.9
.9
.2
*
*
*
.9
3.9
5.6
5.6
2.2
1.2
.1
-*
5.6
2.2
1.4
.1
-.1
1979
19i8
.5
1.8
-.3
1.8
1.3
1.4
*
1. 1
-*
*
*
3.8
1.4
-*
3.5
3.0
6. 5
2.4
1.5
.1
-.1
9. 3
2.6
1.6
.1
2. 3
.6
.4
-*
*
-*
10.0
2.8
1.7
.1
-*
11. 1
3. 3
1.9
.1
-.1
12.0
3.4
2.0
.1
-.1
. .. .. . . . . . . .
Total transportation. . . . . . .
6. 5
7.0
8. 1
8.4
9. 1
9.2
10.4
13.4
3.3
14.6
16.3
17.4
Community and regional development:
Community development ........
Area and regional development ...
Disaster relief and insurance .....
Deductions for offsetting receipts.
.9
.6
*
-*
1.5
.6
.3
1.8
.7
.4
2. 1
.9
1.6
2. 1
1.2
.8
.9
.3
.1
4.0
4.0
1.7
4.0
3. 7
1.0
-*
-*
-*
.5
3.5
2. 1
.6
-*
2. 3
1.0
.4
2.8
1.4
-*
2. 1
.9
.4
Total community and regional development ......
1. 5
2.4
2.8
3.4
4.6
4. 1
-*
3.7
*
4.7
*
1. 3
-*
'*
6.3
9. 7
*
8.7
Education, t:r:ainin~, employment,
and social services:
Elementary, secondary, and vocational education ..............
Higher education ...............
Research and general education
aids ........................
Training and employment. ......
Other labor services .............
Social services ..................
Deductions for offsetting receipts.
Total education, training,
employment, and social
serVices .................
.
Health:
Health care services .............
Heal th research ................
Education and training of health
care work force. . . . . . . . . . . . . ..
Consumer and occupational health
and safety ...................
Deductions for offsetting receipts ..
Total health ......... '.....
2. 7
1.2
3. 1
1.4
3.5
1.4
4.0
1.4
3. 7
1.5
3.8
1.3
4.6
2. 0
4. 7
2. 7
1.2
.7
5. I
3. I
5. 7
3.8
6.5
4. 3
.3
1.6
.1
1.6
*
.5
1.6
.I
1.9
-*
.5
2.0
.2
2.2
-*
.5
2.9
.2
3. 5
*
.7
3. 3
.2
3. 3
-*
.9
2. 9
.2
3.2
*
.9
4. I
.3
3.9
-*
.8
6. 3
.3
4.0
-*
.2
1.9
.1
1.0
-*
.9
6. 9
.4
4. 6
1.2
10.9
.4
5. 5
*
1.2
12.8
.5
5. 1
-*
7. 5
8.6
9.8
12.5
12.7
12.3
15.9
18.7
5.2
21. 0
27.5
30.4
10.0
1.0
11. 1
1. 1
12.6
1. 1
15.0
1.3
16.0
1.6
19. 1
1.7
24. 2
1.9
29.4
2. 3
7. 7
.5
34. 5
2. 5
39.9
2. 7
45.1
2.9
.6
.6
.7
.7
.9
.8
.9
1.0
.3
1.0
.8
.8
.2
*
.2
*
.3
*
.4
*
.4
-*
.5
*
.6
*
.7
*
.2
-*
.7
*
.8
-*
.9
*
11. 8
13.1
14.7
17.5
18.8
22. 1
27.6
33.4
8.7
38.8
44.3
49.7
---
---,
Income security:
G~neral retirement and disability
Insurance ....................
Federal employee retirement and
disabili ty. . . . . . . . . . . . . . . . . . ..
Unemployment comp~nsation ....
Public assistance and other income
supplements .................
Deductions for offsetting receipts ..
Total income security ......
--....J
<.0
See footnotes at end of table.
--
-* -
28. 3
31. 3
37.5
42.0
51. 7
58. 6
69.4
77.2
20. 9
88.6
98. 2
108.4
1.7
2. 6
2. 7
3.4
3. 2
6. 2
3. 8
7. 1
4.5
5.4
5. 6
6. 1
7.0
13.5
8. 2
19.5
2. 3
4.0
9.5
15. 3
10.8
12.4
12. .0
11. 8
4. 7
*
5. 7
*
8.6
-*
II. 1
-*
11. 4
-*
14. 1
*
18.8
*
21. 8
-*
5.5
*
23. 6
26.3
27.8
-*
-*
-*
37.3
43. 1
55.4
63.9
73.0
84.4
108.6
126.6
32.7
137.0
147.6
160. 0
co
"Table 3. BUDGET OUTLAYS BY FUNCTION AND SUBFUNCTION: 1969-79 (in billions of dollars)-Continued
0
Actual
Function and sub function
1970
1969
1971
1972
1973
Estimate
1974
197.1
1976
TQ
1977
1978
1979
Veterans benefits and services:
Income security for veterans .....
Veterans education, training, and
rehabilitation ................
Hospital and medical care for
veterans .....................
Veterans housing ...............
Other
veterans benefits and serv.Ices ........................
Deductions for offsetting receipts ..
-*
-*
-*
-*
-*
-*
-*
-*
-*
-*
-*
-*
Total veterans benefits and
•
servIces
.................
7.6
8.7
9.8
10.7
12.0
13.4
16.6
18.4
4.0
18.0
18.9
19.3
Administration of justice:
Federal law enforcement activities.
Fe~e~~l litigative and judicial ac-
·5
.6
·7
.8
1.0
1. 1
1.3
1.5
.4
1.7
1.9
2.0
tlVltles . . . . . . . . . . . . . . . . . . • • . .
·2
·2
·1
.3
·1
.4
.4
·2
.6
.4
.2
.8
.5
·2
.9
·7
.2
.9
·2
·1
.3
·1
.8
.2
.8
1.0
.3
.8
1. 1
.4
·7
Federal correctional activities ....
Criminal justice assistance. . . . . . .
Deductions for offsetting receipts ..
5.0
5.5
6.0
6.3
6.5
6.8
7.9
8.4
2. 1
9. 2
9. 7
10.3
·7
1.0
1.7
2.0
2.8
3.2
4.6
5.5
.8
3. 7
3. 1
2.6
1.6
2.0
2. 7
-.4
3.7
-*
*
4.0
-.1
1.0
-*
4. 7
-.1
5.4
-.2
2.4
-.3
3.0
·1
1.8
·1
5.8
-.1
·2
·3
.3
·3
.4
.4
·5
·6
·1
.5
.6
*
-*
·1
-*
.2
-*
-*
·8
1.0
1.3
General government:
Legislative functions ............
Executive direction and man agemen t .......................
Central fiscal operations .........
General property and records management .....................
Central personnel management ...
Other general govern men t. . . . . . .
·3
·3
*
.8
.6
*
·1
·7
-*
-*
-*
-*
.2
-*
-*
1.6
2. 1
2.5
2.9
3.3
.9
3.6
4.0
4.2
·3
.4
.4
·5
.6
.7
.2
.8
.9
.9
*
.9
*
1.0
·1
1.2
·1
1.2
·1
1.3
·1
1.8
·1
1.8
*
.4
·1
1.9
.1
2.2
·1
2.4
·6
.6
·7
·I
1.0
·1
.4
.4
·1
.5
·1
·1
·5
·1
*
.2
·1
·1
.5
.4
.1
.6
.4
·1
·9
·1
·2
Total administration of jus•
tlce.
... .. .. .. .. .. .. .. .. .
·1
-*
*
.2
.2
.2
.
-*
-*
·1
.6
Deductions for offsetting receipts ..
-.2
-.1
-.1
-.1
-.2
-.2
-.3
-.3
-.1
-.2
-.2
-.2
Total general government ..
1. 6
1.9
2.2
2.5
2.7
3.3
3. 1
2.9
.9
3.4
4. 1
4.3
.. .. .. .. .. ..
.. .. .. . .. ..
. .
6.6
6. 1
6. 1
6.2
1.6
6. 8
6.8
6. 9
.4
.5
.5
.7
.7
.8
1. 1
1.0
.5
2. 7
3.0
2.8
Total general purpose fiscal
assistance. . . . . . . . . . . . . . .
.4
.5
.5
.7
7.4
6.9
7.2
7.2
2. 1
9.5
9.9
9.6
Interest:
Interest on the public debt .......
Other interest ..................
16.6
-~ 8
19.3
-1.0
21. 0
-1.4
21. 8
-1.3
24.2
-1.4
29.3
-1.2
- 32. 7
-1.7
37. 1
-2.5
8. 1
-.9
41. 9
-3.8
48.6
-4.8
55.4
-6.4
Total interest .............
15.8
. 18.3
19.6
20.6
22.8
28.1
31. 0
34.6
7.2
38.1
43.8
49.0
.. . .. .
.. .. .. . .. ..
..
.. . .. . .. ..
.. . .. .. .. ..
.. . .. . .. .
..
. .. .. ..
. . .. . .. .
.. . .. .. .. ..
.. .. . .. .. .
1. 1
.. . .. .. .. ..
.. . .. . .. ..
.. .
.. .. .. .. .. .
.. . .. . .. .
.
.. .. .. .. . ..
.. .. .. .. .. ..
1.7
. ..
.. .. .. .. .. ..
.. . .. .. . ..
. . .. .. . ..
.. . . ..
.. . .. . .. ..
.. .. . . .. .
.. . . . .. ..
.. . .. .. .. .
.. . .. . . .
..
. . . ..
.. .. . .. . ..
.. . . .. . ..
.. ..
. . ..
. . .. .. . ..
2.8
General purpose fiscal assistance:
General revenue sharing .........
Other general purpose fiscal assistance ................................................
Allowances:
Civilian pay raises ..............
Con tingencies for:
Relatively uncontrollable programs .....................
Other requirements ...........
Total allowances ... .......
CO
1----4
..
.. .
..
..
.. ..
.
..
.. .. .. . .. ..
.. .
. .. .. .. .. .
.. .. .. . . .
.. . .. . .. ..
.. . .. .. .. .
.. . . . . ..
.. . .. . .. ..
.. . .. .. .. .
.. . .. .. .. .
.. . .. .. .. ..
..
.. . . .
. .. .. .. .. ..
.. .. .. .
..
.
.
.. .. ..
..
..
.. .. ..
..
..
..
. .. . . ..
..
Undistributed offsetting receipts:
Employer share, employee retirement .......................
In terest received by trust funds ...
Rents and royalties on the Outer
Con tinen tal Shelf. ............
-2.0
-3.1
-2.4
-3.9
-2.6
-4.8
-2.8
-5.1
-2.9
-5.4
-3.3
-6.6
-4.0
-7.7
-4.2
-7.8
-1.0
-.3
-4.5
-8.1
-5.0
-8.6
-5.2
-9.1
-.4
-.2
-1.1
-.3
-4.0
-6.7
-2.4
-2.7
-1.3
-. 2.4
-2.0
-1.8
Total undistributed offsetting receipts .............
-5.5
-6.6
-8.4
-8.1
-12.3
-16.7
-14.1
-14.7
-2.6
-15.1
-15.6
-16.0
Total budget outlays .......
184.5
196.6
211. 4
232.0
247. 1
269.6
326.1
365.6
94.7
401. 9
462.2
500.2
See footnotes at end of table.
Table 3. BUDGET OUTLAYS BY FUNCTION AND SUBFUNCTION: 1969-79 (in billions of dollars)-Continued
Actual
Ftllction and subfunction
1969
Outlays oj off-budget Federal entities: 2
irderllational affairs: International financial programs . ............. .
1970
1971
1972
---
Estimate
1974
1973
--.1
1975
197G
TQ
1977
1979
1978
-.1
-*
*
-.1
-.1
.5
.5
.2
-.1
.4
·1
Commerce and housing credit:
Postal Service . ............... .
Federal Financing Bank . ....... .
.8
.1
1. 1
6. 4
1. 1
5.9
-.7
2. 6
-.2
8. 2
.8
10.6
12.5
Total, commerce and housing
credit . .................. .
.9
7.5
6. 9
1. 8
8. 0
11.4
12.5
*
---
.1
*
.2
·1
*
.1
.1
*
.1
·1
.1
-*
-*
-*
*
*
~==
===1=
*
8.1
7.2
1.8
8. 7
11.5
E 'urgy: Energy supply . ........... .
---
===
===
---
. . . . ..
Transp,ortation: Ground transportation.
- .= =
.. . . . .
-~-
Community and regional development:
Area and regional development . ...
*
Income security: General retirement
and disability znsurance . ....... .
---
... . . .
Outlays off-budget Federal entities.
Outla.,ys including off-budget Federal entities . ............. .
184. 5
19~
6
.1
--- ---~-
.1
1. 4
12.5
===: -
211.4
232.0
*$50 million or less.
Includes allowances for civilian and military pay raises for Department of Defense.
OLI-budget Federal entities begin in 1973.
1
2
*
247. 1
271. 1
334. 1
372. 9
96. 4
410. 6
473. 7
512.7
Table 4. COMPOSITION OF BUDGET OUTLAYS IN CURRENT AND CONSTANT (FISCAL YEAR 1972) PRICES: 1956-79
(In billions of dollars)
Current prices
Constant (fiscal year 1972) prices
Nondefense
Fiscal year
00
~
Total
outlays
National
defense
Payments
for
individuals
Total
nondefense
Nondefense
Net
interest
All
other
Total
outlays
National
defense
Total
nondefense
1956 ................
1957 ................
1958 ................
1959 ................
1960 ................
70. 5
76. 7
82.6
92. 1
92. 2
39. 7
42.4
43. 7
46.0
45. 2
30.
34.
38.
46.
47.
7
3
9
1
1
13.8
15. 6
19.4
21. 2
22.9
5. 1
5.4
5.6
5. 8
6. 9
11. 8
13.4
13.8
19.2
17.2
133.0
137.2
141. 9
153. 9
150. 8
72.
74.
74.
75.
73.
9
2
0
3
8
60. 1
63.0
67. 9
78. 6
77.0
1961 ................
1962 ................
1963 ................
1964 ................
1965 ................
97. 8
106. 8
Ill. 3
118.6
118.4
46.6
49.0
50. 1
51. 5
47. 5
51.
57.
61.
07.
71.
2
8
2
1
0
25. 9
27. 1
28. 7
29. 8
30.5
6. 7
6. 9
7. 7
8. 2
8.6
18.6
23. 8
24. 8
29. 1
31. 9
157. 1
168. 7
170. 7
177.4
173.3
74. 8
77.2
76. 8
77.0
69. 3
1966 ................
1967 ................
1968 ........... '.....
1969 ................
1970 ................
134. 7
158. 3
178~ 8
184. 5
196.6
54. 9
68. 2
78. 8
79.4
78. 6
79. 8
90.0
100. 1
105. 1
118.0
34. 3
40.1
46.0
52. 8
59.8
9.4
10. 3
11. 1
12. 7
14.4
36. 1
39. 7
43.0
39.6
43. 9
187. 9
212. 1
229. 5
223. 1
220.8
1971 ................
1972 ................
1973 ................
1974 ................
1975 ................
211. 4
232.0
247. 1
269. 6
326. 1
75. 8
76. 6
74. 5
77. 8
85.6
135.6
155.5
172.5
191. 9
240. 5
74.
85.
95.
Ill.
142.
6
3
9
1
7
14. 8
15.5
17.4
21. 5
23. 3
46. 2
54. 7
59.2
59.3
74.6
1976 ................
TQ .................
1977 ................
1978 estimate ........
1979 estimate ........
365.6
94. 7
401.9
462. 2
500.2
89.4
22. 3
97.5
107.6
117.8
276. 2
72.4
304.4
354. 6
382.4
166. 6
42. 7
181. 7
196.9
214.5
26. 8
7.0
30.0
35. 2
39. 9
82.9
22. 7
92. 7
122.4
128.0
Payments
for
indi viduals
Net
interest
All
other
21. 2
23. 2
28.0
30. 1
32. 1
16. 9
16. 1
16. 2
16.5
16. 3
22.0
23.6
23. 7
32. 1
28.6
82. 2
91. 5
93. 9
100.4
104.0
35.
37.
38.
39.
40.
8
1
8
7
1
16. 2
16. 7
16. 8
16.8
16. 7
30. 2
37. 8
38. 3
43. 9
47.2
76. 3
92.0
101. 4
97. 9
90. 3
Ill. 6
120. 1
128. 1
125. 3
130.5
44.
50.
55.
60.
65.
2
1
6
9
1
16.5
16. 1
16.9
15.5
15.0
50.9
53. 9
55. 6
48. 8
50.4
223.0
232.0
233. 2
231. 9
253.4
81. 2
76. 5
70.0
67. 9
67. 1
141. 8
155. 5
163. 2
164.0
186. 2
77. 2
85. 3
92. 2
98.0
113. 3
15.2
15.5
15.4
14.4
14.6
49. 3
54. 7
55.6
51. 5
58. 3
265. 8
66. 7
272.0
293.0
296.6
65. 5
15.9
66. 5
68.9
70. 3
200. 3
50. 8
205. 5
224. 1
226. 3
123.6
30.6
125.4
128.2
131. 6
16.4
4. 1
17.4
18.2
18.9
60.4
16. 1
62. 7
77. 7
75. 8
Table 5. BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in millions of dollars)
Department or other unit
Legislative branch ...................................... . .......
The Judiciary ..................................................
Executive Office of the President ..................................
Funds appropriated to the President ...............................
Agricul ture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................
Commerce .....................................................
Defense-Milit~ry 1 •.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Defense-Civil .......... ... .......... ... ........... .......... ..
Energy 2 • • • . • . . • . . . . • • . . . • • • . • . • • • . • . • . • . • • • . • . • . • • • • • • • • • • • • •
Health, Education, and Welfare ..................................
Housing and Urban Development. ... ...... .. ..... ...............
Interior .......................................................
Justice ........................................................
Labor .........................................................
State .........................................................
Transporta tion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................
Treasury ......................................................
Environmental Protection Agency .................................
General Services Administration .. . ...............................
National Aeronautics and Space Administration ....................
Veterans Administration .........................................
Other independent agencies. . . . . . . . . . . . . . . . . . . . . . . . . . ............
Allowances 3. . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . . . . . . • . • . .
Undistributed offsetting receipts:
Employer share, employee retirement ............................
Interest received by trust funds .................................
Rents and royalties on the Outer Continental Shelf lands ...........
Budget authority
1977
actual
1978
estimate
1979
estimate
1977
actual
1978
estimate
1979
estimate
...... .. .
1,076
469
76
8,964
17,209
2,370
115, 264
2, 744
10,632
162,281
38, 143
4,257
2,365
20,676
1,443
13,560
56, 571
5,503
224
4,063
19,042
31, 596
. .. . .. . . .
976
1, 161
492
392
79
73
10, 974
2,487
16, 738
20,026
2, 722
2,606
125,567
95,650
2,457
2,280
11, 642
5,217
185,007
147,455
5,838
33, 112
3, 194
4,452
2,457
2,350
29,861
22,374
1,076
1,465
17, 355
12, 514
49,560
69,648
4,365
5,627
300
- 31
3,944
4,370
18, 019
19,048
19,878
32,220
4, 150 . . . . . . . . .
1,057
458
78
4,916
22,625
4,524
105,300
2,536
8, 152
164,595
8, 411
3,904
2,527
23, 742
1,247
14,395
56,688
5,063
289
3,982
18,898
24,467
. .. . .. .. .
1, 175
489
78
5,089
17,727
4,385
115, 200
2,547
10,087
181,265
9,529
4,002
2,533
25, 134
1,355
15,798
62,612
5,679
306
4,269
19,238
24,899
2,800
-4,548
-8, 131
-2,374
-5,024
-8,595
-2,000
-5,157
-9,064
-1, 800
-4,548
-8, 131
- .2, 374
-5,024
-8,595
-2,000
-5, 157
-9,064
-1,800
502,907
568,172
401,902
462,234
1,043
430
78
4,639
15,467
8,204
108,425
2,495
6,620
147,628
33,900
3, 703
2,334
31,203
1,240
9,298
49,391
2, 763
304
3,818
19,042
28,253
,
Total budget authority and outlays .......................
Outlays
465,231
-
----500,174
MEMORANDUM
Portion available through current action by Congress. . . . . . . . . . . . . . . .
Portion available without current action by Congress ................
Outlays from obligated balances 4 •••••••••••••••••••••••••••••••••
Outlays from unobligated balances 4 •••. •••••••••••••••••••••••••••
Deductions for offsetting receipts:
Intragovernmental transactions .................................
Proprietary receipts from the public .............................
Total budget authority and outlays ........................
317,500
206,925
327,377
235,337
366,929
264,822
190,864
134,434
78,889
56,908
196,355
157, 607
107, 166
60, 914
218, 015
180, 109
121, 814
43,816
-42,501
-16,693
-43,430
-16, 377
-46,335
-17,244
-42,501
-16,693
-43,430
-16, 377
-46,335
-17,244
465,231
502,907
568,172
401,902
462,234
500,174
. .. ... . . .
. . . . .. . . .
. . . . .. . . . . . . . .. . . .
. . . . .. . . . . . . . . . . . .
Includes allowances for civilian and military pay raises for Department of Defense.
This agency assumes the energy activities previously performed by the Energy Research and Development Administration, the Federal Energy Administration, and several
other agencies.
3 Includes allowances for civilian agency pay raises and contingencies.
, Outlays from appropriations to liquidate contract authority are included as outlays from balances.
1
:I
co
c.n
co
0'>
Table 6. OUTLAYS AND RECEIPTS OF TRUST FUNDS (in millions of dollars)
Outlays
Description
1977
actual
1978
estimate
Receipts
1979
estimate
1977
actual
1978
estimate
1979
estimate
85,068
3,800
769
9,652
14, 103
21,549
6, 147
853
6, 760
8,210
609
-1,450
94, 729
4,094
764
10, 999
11, 800
25,571
6,824
1,094
6,827
8,500
673
-995
.
.
.
.
156,069
-1,231
-10, 386
-1, 186
170, 881
-1,687
-9,766
-1, 238
187,015
-1,381
-10, 300
-1, 242
165,565
- 1,231
- ' 10, 386
-1, 186
181,181
-1,687
-9,766
-1,238
200,913
-1, 381
-10, 300
-1,242
Total ....................... . ................... , ...... .
143,267
158,190
174,092
152,763
168,490
187,991
Federal old-age, and survivors, and disability insurance trust funds ... .
Railroad employees retirement funds ............................. .
Veterans life insurance trust funds ............................... .
Federal employee3 retirement funds .............................. .
Unemployment trust fund ...................................... .
Health insurance trust funds ..... ....... ........................ .
Highway trust funds ........................ , .................. .
Airport and airway trust funds .................................. .
State and local government fiscal assistance trust fund .............. .
Foreign military sales trust fund ................................. .
Other trust funds (nonrevolving) ................................ .
Trust revolving funds .......................................... .
Subtotal ................................................
Intrafund transactions .............. ..... .......................
Propri~tary receipts from the public ..............................
Receipts from off-budget Federal entities ..........................
104,458
81, 169
89, 723
4,280
3,597
3,973
819
950
1, 010
16,692
17,873
12,283
14,986
15,400
11, 600
29,410
22, 757
27,482
7,507
7,302
7, 730
1, 143
1,384
1,496
6,855
6,852
6,655
9,500
9,369
8, 700
939
703
668
-1,507 . . . . . . . . . . . . . . . . . .
-----
101,530
3,902
1,000
19,457
16,800
31, 703
8, 105
1,327
6,855
9,200
1,034
. ..... .. .
Table 7.-FEDERAL FINANCES AND THE GROSS NATIONAL PRODUCT, 1956-79
(Dollar amounts in billions)
Outlays 1 2
Budget receipts 1
Year
1956 .......
1957 .......
1958 .......
1959 .......
1960 .......
1961 .......
1962 .......
1963 .......
1964 .......
1965 .......
1966 .......
1967 .......
1968 .......
1969 .......
1970 .......
1971. ......
1972 .......
1973 .......
1974 .......
1975 .......
1976 .......
1977 .......
1978 est. ...
1979 est ....
Gross
national
product
°
411.
432. 7
442. 1
473. 3
497.3
508. 3
546.9
576.3
616.2
657. 1
721. 1
774.4
829. 9
903. 7
959.0
1,019.3
1, 110. 5
1,237.5
1,359.2
1, 454.6
1,625.4
1, 838.0
2,043.2
2,274.6
Amount
74. 5
80. O·
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
281. 0
299. 2
356.9
400.4
439. 6
Percent
of GNP
18. 1
18. 5
18.
16. 7
18. '6
18.6
18.2
18. 5
18. 3
17. 8
18. 1
19. 3
18.5
20. 8
20. 2
18. 5
18. 8
18. 8
19.5
19. 3
18.4
19.4
19. 6
19.3
°
Off-budget
Federal
entities
-
Unified budget
Amount
70. 5
76. 7
82. 6
92. 1
92. 2
97. 8
106. 8
Ill. 3
118. 6
118.4
134.7
158. 3
178.8
184. 5
196.6
211. 4
232.0
247. 1
269. 6
326. 1
365. 6
401.9
462. 2
500. 2
Percent
of GNP
17. 1
17. 7
18. 7
19.5
18. 5
19.2
19.5
19. 3
19.2
18. 0
18. 7
20.4
21. 5
20.4
20. 5
20. 7
20. 9
20.0
19.8
22.4
22. 5
21. 9
22.6
22.0
Federal debt, end of year
Total
Total
Held by the public
• Amount
Percent
of GNP
Amount
Pel cent
of GNP
Amount
Percent
of GNP
Amount
Percent
of GNP
· . .. . . . .
· . .. . . . .
70.5
76. 7
82.6
92. 1
92.2
97.8
106.8
Ill. 3
118. 6
118.4
134. 7
158. 3
178.8
184. 5
196.6
211. 4
232.0
247. 1
271. 1
334. 1
372. 9
410.6
473. 7
512. 7
17. 1
17. 7
18.7
19.5
18.5
19.2
19.5
19.3
19.2
18.0
18.7
20.4
21. 5
20.4
20.5
20. 7
20. 9
20.0
19.9
23.0
22. 9
22. 3
23. 2
22.5
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
409.'5
437. 3
468. 4
486. 2
544. 1
631.9
709. 1
785. 6
873. 7
66.4
62. 9
63. 3
60. 8
58. 5
57.6
55. 5
53.9
51. 4
49. 2
45. 7
44.1
44.6
40.6
39. 9
40.2
39.4
37.9
35. 8
37.4
38.9
38.6
38.4
38. 4
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
396. 9
480. 3
551.8
617.8
690. 8
54. 1
50. 7
51. 2
49. 7
47. 7
46. 9
45.4
44. 2
41. 8
39.8
36. 7
34.5
35.0
30.9
29. 7
29.9
29. 2
27. 7
25. 5
27.3
29. 5
30.0
30.2
30.4
· ........
· . .. .. . . .
· ......
· .......
· .. . . .. .. .
· .......
· ......
· .......
· ...........
. . .. .. .. . .
..............
..............
.. . .. . .. .. ..
.. . .. .. .. . ..
·..
..............
. . .. . .. . ..
.. .
..
.. . ..
.. .. ..
.
. ..
. .. . . .. ..
.. .
.. ..
. .
.
. .
..
..
. . . ..
. .. .. .. . .
. . .. . .. . ..
..............
..............
. . .. . . .. .
.. . .
. .. .. . .. . ..
..............
..............
. ............
.1
1.4
8.0
7. 2
8. 7
11. 5
12.5
..
. .. . .
............
*
.1
.6
.4
.5
.6
.6
*.05% or less.
00
'-l
N ote.-Exchange stabilization fund included from 1976.
1 The amounts of earned income credit in excess of tax liabilities are shown as negative budget receipts rather than as budget outlays. Accordingly, the budget totals have been
adjusted retroactively.
2 The 1975-1977 data have been revised retroactively to include the housing for the elderly or handicapped fund in the unified budget instead of with the off-budget Federal entities.
Table 8. SUMMARY OF FULL-TIME PERMANENT CIVILIAN EMPLOYMENT
IN THE EXECUTIVE BRANCH 1
[Excluding the Postal Service]
Sept. 30
Agency
1977
actual
1978
estimate
1979
estimate
82,051
29,491
911, 637
28, 912
18,078
140,389
15, 261
53,291
50,986
18, 948
22,412
71,550
107, 150
9,779
34,040
23,569
195,175
84,800
29,800
912, 100
28, 700
19,500
144,300
16,000
55, 700
53,400
20,800
22,800
72,800
109, 700
10,200
35,900
23,200
202,400
84,000
29,800
904,900
28,600
19,100
145, 100
17,400
56,000
55, 100
20,800
22,800
73, 100
112, 500
10,800
36,000
23,200
203,000
5,712
6,875
8,519
2,499
12, 914
4,307
17, 060
38,383
5,900
7,000
8,600
2, 700
13,500
4,500
17, 300
40,800
5,900
7,200
8,600
2,800
13,500
4,600
18,000
41,200
1, 908, 988
. . .. .. .. .
1, 942, 700
2,000
1, 944, 200
2,000
Subtotal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 908, 988
Expected lapse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1, 944, 700
-14,600
1, 946, 200
-14,600
1,908,988
1,930,100
1,931,600
Agricul ture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commerce 2 ••••••••••••••••••••••••••••••••
D e £ense-rru'1'1tary f unctIons
.
-2 ..................
Defense-civil functions ......................
Energy 2. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Health, Education, and Welfare ...............
Housing and Urban Development ......... : ...
I n terlor
. 2 ...................................
Justice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Labor 2. . • • • • • • • • • • • • • • • • • • . • • • • • • • • • • • • • . •
S tate 2 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Transportation .............................
Treasury. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Environmental Protection Agency .............
General Services Administration ..............
National Aeronautics and Space Administration.
Veterans Administration .............. '.......
Other:
Agency for International Development .......
Civil Service Commission ..................
International Communication Agency 2 ••••••
Nuclear Regulatory Commission ............
Panama Canal ...........................
Small Business Administration ..............
Tennessee Valley Authority ................
Miscellan~ous 2 • • • • • • • • • • • • • • • • • • • • • • • • • • •
Subtotal .............................
C
'
. 3 ........................... ..
on tlngencles
-
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 Excludes Postal Service employment. Actual employment for 1977 was 527,078; employment for 1978 is
estimated to be 524,600 and 523,800 for 1979. Also excludes developmental positions under the worker trainee
opportunity program (WTO P), as well as certain statutory exemptions.
2 Sept. 30, 1977, numbers have been adjusted to reflect the establishment of the Department of Energy and
its absorption of the Energy Research and Development Administration, Federal Energy Administration,
Federal Power Commission, and parts of other agencies. Similar adjustments have been made to reflect
establishment of the International Communication Agency and the transfer of employees to it from the
Department of State and the United States Information Agency. Transfer of the Mining Enforcement and
Safety Administration from the Interior Department to the Labor Department is also reflected.
3 Subject to later distribution.
88
Table 9. BUDGET RECEIPTS AND OUTLAYS, 1789-1979 (in millions of dollars)
Fiscal year
Receipts
Outlays
Surplus
or
deficit (-)
+70
-991
+119
-52
-49
-22,909
1789-1849
1850-1900
1901-1905
1906-1910
1911-1915
1916-1920
1, 160
14,462
2, 797
3, 143
3,517
17,286
1,090
15,453
2,678
3, 196
3,568
40, 195
1921 .....
1922 .....
1923 .....
1924 .....
1925 .....
1926 .....
1927 .....
1928 .....
1929 .....
1930 .....
5,571
4,026
3,853
3,871
3,641
3, 795
4,013
3,900
3,862
4,058
5,062
3,289
3, 140
2,908
2,924
2,930
2,857
2,961
3, 127
3,320
1931 .. " .
1932 .....
1933 .....
1934 .....
1935 .....
1936 .....
1937 .....
1938 .....
1939 .....
1940 .....
3, 116
1,924
1,997
3,015
3, 706
3,997
4,956
5,588
4,979
6,361
3,577
4,659
4,598
6,645
6,497
8,422
7, 733
6, 765
8,841
9,456
1941 .....
1942 .....
1943 .....
1944 .....
1945 .....
1946 .....
1947 .....
8,621
14,350
23,649
44,276
45,216
39,327
38,394
13,634
35, 114
78,533
91,280
92,690
55, 183
34,532
Fiscal year
Receipts
Outlays
Surplus
or
deficit (-)
1948 .....
1949 .....
1950 .....
41, 774
39,437
39,485
29, 773
38,834
42,597
+ 12, 001
+603
- 3, 112
1951 .....
1952 .....
1953 .....
1954 . ....
1955 .. ...
1956 .....
1957 .....
1958 .....
1959 .....
1960 .....
51, 646
66,204
69,574
69,719
65,469
74,547
79,990
79,636
79,249
92,492
45,546
67, 721
76, 107
70,890
68,509
70,460
76, 741
82,575
92, 104
92,223
+6,100
-1, 517
-6,533
--1 , 170
-- 3, 041
+4,087
+3,249
-2,939
-12,855
+269
94,389
99,676
106,560
112,662
116,833
130,856
149,552
153,671
187, 784
193, 743
97, 795
106, 813
111,311
118, 584
118,430
134,652
158,254
178,833
184,548
196,588
-3,406
-7,137
-4,751
-5,922
-1,596
-3,796
-8,702
-25, 161
+3,236
-2,845
188,392
208,649
232,225
264,932
280,997
299, 197
81,687
356,861
400,387
439,588
211, 425
232,021
247,074
269,620
326,092
365,643
94,657
401,902
462,234
500,174
-23,033
-23,373
-14,849
-4,688
-45,095
-66,446
-12,970
-45,040
-61,847
-60,586
+509
+736
+713
+963
+717
+865
+ 1, 155
+939
+734 1961 .....
+738 1962 .....
1963 .....
-462 1964 .....
-2,735 1965 .....
-2,602 1966 .....
-3,630 1967 .....
-2,791 1968 .....
-4,425 1969 .....
-2,777 1970 .....
-1, 177
-3,862 1971. .. ..
-3,095 1972 .....
1973 .....
-5,013 1974 .....
-20,764 1975 .....
-54,884 1976 .....
-47,004 TQ ......
-47,474 1977 .....
-15,856 1978 est. .
+3,862 1979 est ..
Totals, including outlays of off-budget Federal entities
Fiscal year
1973 .....
1974 .....
1975 .....
1976 .....
Outlays
of offbudget
Federal
entities
60
1,447
8,054
7, 211
Total
outlays
247, 134
271, 067
334, 145
372,854
Total
deficit
-14,909
-6, 135
-53,149
-73,657
Fiscal year
TQ ......
1977 est. .
1978 est. .
1979 est. .
Outlays
of offbudget
Federal
entities
1,770
8,693
11,514
12,538
Total
outlays
96,427
410,594
473, 748
512, 712
Total
deficit
-14,740
-53,733
-73,361
-73, 124
* $500 thousand or less.
N ote.-Certain interfund transactions are excluded from receipts and outlays starting in 1932. For years
prior to 1932 the amounts of such transactions are not significant.
Refunds of receipts are excluded from receipts and outlays starting in 1913; comparable data are not available for prior years.
Data for 1789-1939 are for the administrative budget; 1940-1979 are for the unified budget.
In calendar year 1976, the Federal fiscal year was converted from a July I-June 30 basis to an Oct. I-Sept. 30
basis. The TQ refers to the transition quarter from July 1 to Sept. 30, 1976.
Off-budget Federal entity outlays begin in 1973.
The amounts of earned income credit in excess of tax liabilities are shown as negative budget receipts
rather than as budget outlays. Accordingly, the budget totals have been adjusted retroactively.
The 1975-1977 data have been revised retroactively to include the housing for the elderly or handicapped
fund in the unified budget instead of with the off-budget Federal entities.
89
GLOSSARyl
AUTHORIZATION-Basic substantive legislation enacted by Congress
that sets up or continues the legal operation of a Federal program or
agency. Such legislation is normally a prerequisite for subsequent appropriations, but does not usually provide budget authority (see below).
BUDGET AMENDMENT-A formal request submitted to' the Congress
by the President, after his formal budget transmittal but prior to completion of appropriatiDn action by the Congress, that revises his previous
budget request.
BUDGET AUTHORITY (BA ) -Authority provided by law to enter into
obligations that will result in immediate Dr future outlays. It may be
classified by the period of availability (I-year, multiple-year, no-year),
by the timing of congressional action (current or permanent) , or by the
manner of determining the amount available (definite or indefinite).
The basic fDrms of budget authority are:
Appropriations-budget authority provided through the congressional
appropriation process that permits Federal agencies to incur obligations
and to make payments.
Borrowing authority-statutory authority, not necessarily provided
through the appropriations process, that permits Federal agencies to
incur obligations and to make payments from borrowed moneys.
Contract authority-statutDry authority, not necessarily provided through
the appropriations process, that permits Federal agencies to enter into
contracts or incur other obligations in advance of an appropriation.
BUDGET RECEIPTS-Money, net of refunds, collected from the public
by the Federal Government through the exercise of its governmental or
sovereign pow.ers, as well as premiums from voluntary participants in .
Federal social insurance programs closely associated with compulsory
programs and as gifts and contributions. Excluded are amounts received
frDm strictly business-type transactions (such as sales, interest, or loans)
and payments between Government accounts. (See offsetting receipts.)
BUDGET SURPLUS ( + ) OR DEFICIT ( - ) -The difference between
budget receipts and outlavs for any given period.
CONCURRENT RESOLUTION ON THE BUDGET-A resolution
passed by both Houses of Congress, but not requiring the signature of
the President, setting forth, reaffirming, or revising specified congressional budget totals for the Federal Government for a fiscal year.
CONTINUING RESOLUTION- Legislation enacted by Congress to provide budget authority for specific ongoing activities when a regular
appropriation for such activities has not been enacted by the beginning
of the fiscal year.
These definitions are consistent with those contained in the booklet "Budgetary
Definitions," published by the General Accounting Office in July 1977.
1
90
CONTROLLABILITY-In the President's budget thi~ refers to the ability
of the President to control budget authority or outlays during a fiscal
year without changing existing substantive law. The concept "relatively uncontrollable" includes outlays for open-ended programs and
fixed costs, such as interest on the public debt, and social security and
veterans benefits, as well as outlays to liquidate prior-year obligations.
CURRENT SERVICES ESTIMATES-Projections of estimated budget
authority and outlays for the coming fiscal year at the same program
level as and without policy changes from the fiscal year in progress.
To the extent mandated by existing law, estimates take into account
the budget impact of anticipated changes in economic conditions (such
as unemployment or inflation), beneficiary levels, pay increases, and
benefit changes. The Congressional Budget and Impoundment Control
Act of 1974 requires that the President transmit current se1;vices estimates to the Congress. The current services estimates for 1979 are
published in Special Analysis A of the 1979 budget.
DEFERRAL-·Any action or inaction by an officer or employee of the
United States that temporarily withholds, delays, or effectively precludes the obligation or expenditure of budget authority. Deferrals may
not extend beyond the end of the fis~al 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. There are four types of
Federal fund accounts: the general fund, special funds, public enterprise (revolving) funds, and intragovernn1ental funds. The major Federal fund is the general fund, which is derived from general taxes and
borrowing. Federal funds also include certain earmarked collections,
such as those generated by and used to finance a continuing cycle of
business-type operations.
FISCAL YEAR-The yearly accounting period for the Federal Govern"'ment, which begins on October 1 and ends on September 30. The
fiscal year is designated by the calendar year in which it ends; e.g.,
fiscal year 1977 is the fiscal year ending September 30, 1977. (Prior to
fiscal year 1977 the fiscal year began on July 1 and ended on June 30.)
IMPOUNDMENT" Any action or inaction by an officer or employee of
the Federal Government that precludes the obligation or expenditure
of budget authority provided by the Congress (see deferral and
rescission). .
NATIONAL NEEDS-The end purposes being served by budget authority, outlays and tax expenditures grouped by function. To achieve our
national needs, the ,Federal Government undertakes major missions
that are supported by basic programs:
Major missions-The purposes being served by the basic programs authorized to carry out national needs. For purposes of the budget, major
missions are synonymous with subfunctions.
Basic programs-A set of activities directed toward a common purpose or
goal, undertaken in order to meet major missions.
91
OBLIGATIONS-Amounts of orders placed, contracts awarded, services
rendered, or other commitments made by Federal agencies during -a
given period, that will require outlays during the same or some future
period.
OFF-BU'D GET FEDERAL ENTITIES-Organizational entities, federally
owned in whole or in part, whose transactions belong in the budget
under current budget accounting concepts but which h'ave been excluded
from the budget totals under provisions of law. While these transactions
are not included in the budget totals, information on these entities is
presented in various places in the budget documents.
OFFSETTING RECEIPTS-Collections deposited in receipt accounts that
are offset against budget authority and outlays rather than being counted
as budget receipts. These are collections from other ·G overnment
accounts or from transactions with the public that are of a business-type
or market-oriented nature. Offsetting receipts are classified as (1) intragovernmental transactions or (2) proprietary receipts from the public.
OUTLAYS-'Checks issued, interest accrued on the pu·blic debt, or other
payments 'm ade, net of refunds and reimbursements.
RESCISSION-Enacted legislation canceling budget authority previously
provided by the Congress. .
SUPPLEMENTAL APPROPRIATION-An appropriation enacted as an
addition to a regular annual appropriation act. Supplemental appropriation acts provide additional budget authority beyond original estimates for programs or activities (including new programs authorized
after the date of the original appropriation' act) for which the need for
funds is too urgent to be postponed until the next regular appropriation.
T AX EXPENDITURES-Losses of tax revenue attributable to provisions
of the Federal tax law that allow a special exclusion, exemption, or
deduction from gross income or provide a special credit, preferential
rate of tax, or a deferral of tax liability.
TRANSITION QUARTER-The 3-month period (July 1 to September 30,
1976) between fiscal year 1976 and fiscal year 1977 resulting from the
change from a July 1 through June 30 fiscal year to an October 1
through September 30 fiscal year beginning with fiscal year 1977.
TRUST FUNDS-Funds collected and used by the Federal Government
for carrying out specific .purposes and programs according to terms of a
trust agreement or statute, such as the social .security and unemployment trust funds. Trust funds are not availaJble for the general purposes
of the Government. Trust fund receipts that are not anticipated to be
used in the immediate future are generally invested in interest-bearing
Government securities and earn interest for the trust fund.
ZERO-BASE BUDGETING (ZBB)-A process that emphasizes management's responsibility for planning, budgeting and evaluation. ZBB provides for analysis of alternative-methods of operation and v~ious levels
of effort. It places new programs on an equal footing with existing programs by requiring ranking of program priorities and thereby provides
a systematic basis for allocating resources.
For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402
Stock Number 041-001-00158-1
92
EXECUTIVE
BRANCH
o
F
THE
GOVERNMENT
THE
PRESIDNT
EXECUTIVE OFFICE OF !iE PRESIDENT
THE WHITE HOUSE
OFFICE OF MANAGEMEN.ND BUDGET
COUNCIL OF ECONPMIC VISERS .
COUNCIL ON ENVIRONM rAL QUALITY
COUNCIL ON WAGE AND lICE STABILITY
DOMESTIC POLICY STAFF
NATIONAL SECURITY COlClL
SPECIAL REPRESENTATI\FOR TRADE
NEGOTIATIONS
OFFICE OF SCIENCE ANe :CHNOLOGY
POLICY
OFfiCE OF ADMINISTRA11J
EXECUTIVE OFFICE OF THE PRESIDENT/OFFICE OF MANAGEMENT AND BUDGET
. JANUARY, 1978
THE BUDGET DOCUMENTS
Data and analyses relating to the budget for 1979 are published in four
documents:
( 1) T he Budget of the United States Government, 1979 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 and includes explanations of spending programs
in terms of national needs, agency missions, and basic programs. It also
provides an analysis of estimated receipts and Presidential tax proposals.
This document also contains a description of the budget system 'a nd various
summary tables on the budget as a whole. (Price $4.00.)
(2) The Budget of the United States Government, 1979-Appe ndix 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 text of appropriation language, budget schedules for each account,
explanations of the work to be performed and the funds needed, proposed
general provisions applicable to the appropriations of entire agencies or
groups of agencies, and schedules of permanent positions. Supplemental and
rescission proposals for the current year and new legislative proposals are
presented separately. Information is also provided on certain activities, whose
outlays are not part of the budget totals. (Price $12.00.)
. (3) Special Analyses, Budget of the United States Government, 1979 contains 16 special analyses that are designed to highlight specified program
areas or provide other significant presentations of Federal budget data. This
document includes analytical information about: alternative views of the
budget, i.e., current services and national income accounts; economic and
financial analyses of the budget covering Government finances and operations as a whole; Government-wide program and financial information for
Federal education, training and employment, health, income security, civil
rights, environment, and research and development programs. (Price $3.25. )
( 4 ) T he United States Budget in B~ief, 1979 provides a more concise,
less technical overview of the 1979 budget than the above volumes. Summary and historical tables on the Federal budget and debt are also provided, together with graphic displays. (Price $1.75.)
Each of these documents is for sale by the Superintendent of Documents,
U.S. Government Printing Office, Washington, D.C. 20402. (Paper covers
only.)
1
@FedFRASER