Full text of Budget in Brief : Fiscal Year 1984
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TABLE OF CONTENTS
Page
I.
II.
III.
IV.
V.
FROM THE BUDGET MESSAGE OF THE PRESIDENT.
ECONOMIC ASSUMPTIONS AND THE BUDGET OUTLOOK.........................................................................................
BUDGET RECEIPTS..................................................................
MEETING NATIONAL NEEDS: THE FEDERAL PROGRAM BY FUNCTION............................................................
National defense .............................................. :............................
International affairs ....................................................................
General science, space, and technology ....... ............................
Energy ............................................................................................
Natural resources and environment ........................................
Agriculture ....................................................................................
Commerce and housing credit .... ........... ........ ..... ...... ....... ..........
Transportation.. ....... ............ .......... ..... ...... ...... ....... ..... ....... ...... .....
Community and regional development ....................................
Education.......................................................................................
Training, employment, and social services .............................
Health ............................................................................................
Income security ............................................................................
Veterans benefits and services .... .......... ...... ......... ...... ...............
Administration of justice ....... ............. ......... .................... ...........
General government....................................................................
General purpose fiscal assistance ....... ..................... ...... ...........
Net interest ...................................................................................
Allowances...... ....................... .................. .......... ..... .... ..... .......... ....
Undistributed offsetting receipts ..............................................
Off-budget Federal entities.........................................................
Tax expenditures..........................................................................
THE BUDGET PROCESS .........................................................
BUDGET TABLES......................................................................
GLOSSARY OF BUDGET TERMS .........................................
3
14
27
31
32
33
35
37
39
40
42
43
45
47
48
50
51
54
55
57
57
58
60
60
61
62
63
67
85
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
FROM THE BUDGET MESS*!·~~
PRESIDENT
To the Congress of the United States:
Two years ago, in my first address to the country, I went before
the American people to report on the condition of our economy,
which had suffered from many years of seriously misguided policies. I made a strong commitment to change the traditional shortsighted view that had previously been taken on economic priorities
so that we could achieve our goal of long-term prosperity. I stated
that we had a massive job before us.
Government spending was taking a rapidly increasing share of
national income, burdensome Government regulation had stunted
productivity increases, and excessive tax rates combined with erratic monetary policy resulted in serious disincentives to investment and long-term real economic growth. Inflation was at doubledigit levels. Interest rates were at record highs. Real growth and
job creation had ceased. New investment, productivity, and personal saving were stagnant. Our economy was in the worst mess in
half a century.
To make matters worse, our military strength had been allowed
to run down relative to the aggressively expanding military might
of the Soviet Union. We were in serious danger of becoming powerless to deter or counter Soviet aggression around the world.
The economic program that I proposed at that time focused on
long-range real growth. My tax proposals were designed to provide
badly needed private incentives to stimulate saving and productive investment. I supported the Federal Reserve in its pursuit of
sound monetary policy. I worked with the Congress to reverse the
growth of Government programs that had become too large or
outlasted their usefulness. I worked to eliminate or simplify unnecessary or burdensome regulations.
The unprecedented buildup of inflationary forces in the 1970's,
however, exacerbated in severity and duration the economic downturn of recent years. One of the key detrimental forces has been the
growing Federal budget. Despite our success in reducing the rate of
growth of nondefense spending in the last two budgets, spending in
1983 will exceed 1981 levels by 21%, reflecting continued increases
3
in basic entitlement programs, essential increases in defense spending, and rapid growth of interest costs.
Thus, the full effect of the changes we have made is taking time
to develop. Over-reactive short-term remedies are not the answer.
What is essential now is that we continue to work together to
rebuild this country-without losing sight of the four fundamentals
of our economic program:
• Limiting tax burdens to the minimum levels necessary to
finance essential Government services, thus maintaining incentives for saving, investment, work effort, productivity, and
economic growth.
• Reducing the growth of overall Federal spending by eliminating Federal activities that overstep the proper sphere of Federal Government responsibilities and by restraining the
growth of spending for other Federal activities.
• Reducing the Federal regulatory burden in areas where the
Federal Government intrudes unnecessarily into our private
lives or interferes unnecessarily with the efficient conduct of
private business or of State or local government.
• Supporting a moderate and steady monetary policy, to bring
inflation under control.
TWO YEARS OF ACCOMPLISHMENT
Over the past 2 years, dramatic improvements have been made
in the way the Government affects our economy. The Congress
joined with my administration in a cooperative and politically courageous effort to reverse a decade of runaway growth in spending
and tax burdens, proliferation of unnecessary regulations and red
tape, and erosion of our military strength.
Both the Omnibus Reconciliation Acts of 1981 and 1982 effected
fundamental reforms in numerous Federal programs, and demonstrated a greatly heightened level of maturity and responsibility of
the congressional budget process that has come to fruition with the
help and support of this administration. Although I am disappointed that many administration spending-reduction proposals did not
pass last year-which has resulted in higher deficits-I believe that
the revitalized congressional budget process signifies a refreshing
willingness on the part of the Congress to work with my administration to address squarely the many crucial, complex, and politically difficult budgetary dilemmas before us. The results have been
impressive:
• Where the growth rate of spending was almost out of control
at 17.4% a year in 1980, it is now declining dramatically-to
10.5% this year, and, with this budget, to 5.4% next yearwhich is no more than the projected rate of inflation; in
effect, a comprehensive freeze on total Federal spending.
4
• Where spending growth totaled $220 billion from 1978 to
1981, a 48% increase, spending will rise by only 27% from
1981 to 1984, despite legislated cost-of-living adjustments and
the needed defense buildup.
• For the first time since the Second World War, the Federal
tax system has been fundamentally restructured. Income tax
rates have been substantially reduced, greatly improving the
climate for savings and investment. Excessive taxation of
business income resulting from depreciation allowances rendered inadequate by inflation has been eliminated through
depreciation reform. Tax loopholes have been closed, making
the tax structure more equitable. Emphasis is shifting to financing programs through user fees commensurate with
benefits and services provided.
• The excessive rates of growth of entitlement programs were
curbed. Overly-broad eligibility criteria were tightened to
limit benefit awards more to the truly needy, and eliminate
or restrict unnecessary and costly payments of welfare-type
benefits to those who are relatively well off and are, or ought
to be, self-supporting. Overly-generous and unnecessarily frequent cost-of-living adjustments were pared back. Nonetheless, the growth of these programs has proven difficult to
control and continues to be the primary cause of higher deficits.
• Limitation of Federal credit activity and off-budget spending
is being achieved.
• The burgeoning growth of Federal regulations and red tape
has been capped. The number of proposed new regulations
has been reduced by one-third in the past 2 years. Unnecessary costs of Federal regulation to individuals, businesses, and
State and local governments have been reduced by $6 billion
in annual expenditures and $9 to $11 billion in capital costs.
By the end of 1983, the time our citizens spend filling our
Federal forms and reports will have been cut by over 300
million hours annually.
• Improvements in the management of Federal operations, such
as better procedures for the collection of debts owed the Government and better cash-management practices, are being
carried out. These improvements have helped reduce waste,
fraud, and abuse in Government programs.
• And by the end of the 1982 fiscal year, the Federal nondefense workforce had been reduced by 91,300 employees since I
took office.
During the past 2 years, we have also taken decisive measures to
increase our military strength. At the same time, diplomatic approaches to increase our national security, such as arms reduction
talks, have been vigorously pursued.
5
The improvement in our defense posture includes all of its major
elements. Long-overdue modernization of our strategic forces is
proceeding with new bomber-, submarine-, and land-based missile
programs. Our conventional forces are also being modernized and
strengthened, with new ships, tanks, and aircraft. Above all, successful recruiting and retention over the past 18 months have
resulted in all of our armed services being more fully manned with
capable, high-caliber men and women. The All Volunteer Force is
now working well.
By any standards, these are accomplishments to be proud of. And
I am proud of them. We have come far in restoring order to the
chaos prevailing in our economy and Government affairs just 2
years ago.
This is not to say that we do not still face great problems such as
excessive unemployment, slower than desired economic growth,
and high deficits. During the past 2 years our Nation has labored
to purge itself of the inflationary disease that for nearly two decades had progressively undermined the economy's ability to generate growth, capital formation, worker productivity incentives, and
financial stability. Those inflationary fevers have largely subsided
in the aftermath of my decision 2 years ago to redirect economic
policy toward a more modest size and scope for the Federal Government, a series of tax rate reductions to reward productive investment and work effort, and a restrained monetary policy to sustain
the purchasing power of individual savings and income.
Accompanying the marked progress in unwinding the damaging
inflation spiral that plagued our Nation for so many years, financial markets in 1982 experienced their first sustained improvement
in more than 5 years. Interest rates throughout the maturity spectrum declined substantially, and by yearend we can proudly report
that key rates for home mortgages, consumer loans, and business
investment were able to sustain their lower levels, indicating new
confidence in administration policies and bringing much needed
relief to the housing and auto industries, the farm community, and
the export sector.
Inflationary pressures of the sort experienced during the past
two decades extracted a heavy toll from our economy. We have
learned that the problems we inherited were far worse than most
inside and out of Government had expected; the recession was
deeper and longer than most inside and out of Government had
predicted. Curing those problems has taken more time and a
higher toll than any of us wanted. Unemployment is far too' high.
Fortunately, the long nightmare of runaway inflation is now
behind us. Slowly, but steadily and unmistakably, our national
economy is completing the transition from recession to recovery.
The interaction of lower tax rates, reduced inflation, and falling
interest rates has placed the consumer and the producer in a much
6
strengthened position with respect to balance sheets, liquidity,
after-tax income, and purchasing power.
There are numerous signs that the battered, sputtering inflationwarped economy that we found 2 years ago is on the mend, and
that the dislocation and hardship we have suffered in the interim
will prove to be a corrective interlude on the path of sustained
recovery. But our confidence must also be tempered by realism and
patience. Quick fixes and artificial stimulants, repeatedly applied
over decades, are what brought on the inflationary disorders that
we have now paid such a heavy price to cure.
In part as a result of the difficult period of disinflation, during the
past year and one-half our projections of the Federal deficit have
steadily risen. They have now reached very high levels, creating
uncertainty in the financial markets and threatening to block the
economic recovery ahead of us.
But before we .consider what is to be done, we must review how
we got here. And the ·truth is that as in the case of the social
security fund, the looming gaps in our national budget are the
consequence of both the inflation that got out of hand and the
correctives that have been unavoidably applied to cure it.
During the 1970's, the share of our national income devoted to
domestic programs and transfer payments soared by more than
50%-from 10 cents to 16 cents on every dollar produced by the
American people. For a brief time, it appeared that we could afford
all of this generosity because inflation badly misled us.
As inflation reached higher and higher peaks, the Treasury's
coffel's swelled from its take on inflated incomes and the upward
creep of tax rates. For a time, we even financed our trillion dollar
national debt on the cheap with interest rates that had not yet
caught up with the spiraling inflation. Meanwhile, defense spending grew at less than 60% of inflation, making room in the budget
for extra domestic programs. The real purchasing power available
to maintain our readiness, modernize our weapons, and maintain
strategic nuclear safety declined by a startling 20%.
But it couldn't last-and it didn't. Today the Federal budget
itself has become a major victim of the economic transition:
• The inflationary revenue windfall has dried up.
• Our staggering national debt until recently was being financed at the highest interest rates in peacetime history.
• The undelayable process of restoring our inflation-eroded military budgets and our decayed military strength has further
strained our resources.
• Despite our great strides in reducing the spending growth
over the last 2 years, the vast edifice of domestic programs
remains significantly in place.
The social ,gecurity system has also been a victim of our economic
ills. As a result, for too long the specter of social security insolven
7
cy has haunted our Nation's elderly citizens and threatened to
rupture the lifeline on which 36 million retired and disabled
Americans depend. But however obvious the threat of insolvency,
one thing is certain: social security cannot and will not be allowed
to fail the 36 million Americans who depend on it. With this
commitment in mind, it is especially pleasing to me to join with the
Speaker of the House and the Senate Majority Leader in urging the
Congress to enact the bipartisan compromise plan developed by the
National Commission on Social Security Reform.
There are elements in it that none of us prefers, but taken together it forms a package all of us can support. It asks for some
sacrifice by all-the self-employed, beneficiaries, workers, new government employees, and the better-off among the retired-but it
imposes an undue burden on none. And, in supporting it, we keep
an important pledge to the American people: the integrity of the
social security system will be preserved-and no one's payments
will be reduced.
TOWARD ECONOMIC RECOVERY
To enhance prospects for sustained economic recovery and lower
unemployment, I am proposing a sweeping set of fiscal policy
changes designed to reduce substantially the mounting Federal
deficits that threaten the renewal of economic growth. My plan is
based on these principles:
It must be bipartisan. Overcoming the deficits and putting the
Government's house in order will require the best efforts of all of
us.
It must be fair. Just as all will share in the benefits that will
come from recovery, all should share fairly in the burden of transition.
It must be prudent. The strength of our national defense must be
restored so that we can pursue prosperity in peace and freedom,
while maintaining our commitment to the truly needy.
Finally, it must be realistic. We cannot rely on hope alone.
THE BUDGET TOTALS
(In billions 01 dollars)
1982 actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
Budget receipts ..........................................................
Budget outlays ...........................................................
617.8
728.4
597.5
805.2
659.7
848.5
724.3
918.5
841.9
989.6
Surplus or deficit (-) .............................................
-110.6
- 207.7
-188.8
-194.2
-147.7
Budget authority ...............................................
779.9
847.4
900.1
997.4
1,079.6
8
With these guiding principles in mind, let me outline a four-part
plan to increase economic growth and reduce deficits.
First, I am recommending a Federal spending freeze . I know this
is strong medicine, but so far we have cut only the rate of increase
in Federal spending. The Government has continued to spend more
money each year, though not as much more as it did in the past.
Taken as a whole, the budget I am proposing for the next fiscal
year will increase no more than the rate of inflation-in other
words, the Federal Government will hold the line on real spending.
That is far less than many American families have had to do in
these difficult times.
I will request that the proposed 6-month freeze in cost-of-living
adjustments recommended by the bipartisan National Commission
on Social Security Reform be applied to other Government benefit
programs. I will also propose a I-year freeze on a broad range of
domestic spending programs, and for Federal civilian and military
pay and pension programs.
Second, I will ask the Congress to adopt specific measures to
control the growth of the so-called "uncontrollable" spending programs. These are the automatic spending programs, such as food
stamps, that cannot be simply frozen-and that have grown by
over 400% since 1970. They are the largest single cause of the
built-in or "structural" deficit problem. Our standard here will be
fairness-ensuring that the taxpayers' hard-earned dollars go only
to the truly needy; that none of them is turned away; but that
fraud and waste are stamped out. And, I am sorry to say, there is a
lot of it out there. In the food stamp program alone, last year we
identified almost $1.1 billion in overpayments. The taxpayers are
not the only victims of this kind of abuse; the truly needy suffer, as
funds intended for them are taken by the greedy. For everyone's
sake, we must put an end to such waste and corruption.
Third, I will adjust our program to restore America's defenses by
proposing $55 billion in defense savings over the next 5 years. These
are savings recommended to me by the Secretary of Defense, who
has assured me they can be safely achieved and will not diminish
our ability to negotiate arms reductions or endanger America's
security. We will not gamble with our national survival. As a
percent of GNP, the level I am requesting for defense spending in
1984 is less than the United States spent during the decade of the
1960's. As a percent of the total Federal budget it is far less than
was allocated for national defense in those years. We are 2 years
into the program to re-arm America. Sustaining the momentum of
this program is essential if we are to avoid slipping back into the
inefficient and counterproductive pattern of wildly fluctuating defense spending levels.
380-400 0 - 83 - 2 , QL
9
3
Fourth, because we must ensure reduction and eventual elimination of deficits over the next several years, I will propose a stand-by
tax limited to no more than 1 % of the gross national product to
start in fiscal year 1986. It would last no more than 3 years and
would start only if the Congress has first approved our spending
freeze and budget control program. You could say that this is an
insurance policy for the future-a remedy that will be at hand if
needed, but resorted to only if absolutely necessary.
In the meantime, we will continue to study ways to simplify the
tax code and make it more fair for all Americans. This is a goal
that every American who has ever struggled with a tax form can
understand.
At the same time, however, I will oppose any efforts to undo the
basic tax reforms we have already enacted-including the 10% tax
break coming to taxpayers this July and the tax indexing that will
protect all Americans from inflationary bracket creep in the years
ahead.
Impact of Stronger Economic Growth
• If the recovery of real GNP growth over the next 2 fiscal
years is about 1 % above our cautious projections, the
deficit estimates would improve by an average of about
$20 billion per year, and would result in lower deficits as
follows:
1984
Deficit (-) ($ billions) ....................................... - 177
1985
1986
1987
- 177
- 127
- 119
1988
-90
• An average real GNP growth rate 1.33% higher each
year over the next 6 years, compared to the prudent
projections made in the 1984 budget, would result in a
balanced budget by 1988. This is a "high growth" scenario but within the range of previous historical experience.
My administration remains committed to the goal of a
balanced budget and will propose additional policy actions, as needed, to achieve it.
This plan is urgently needed and is geared toward solving the
problems of the growing deficits. But it naturally requires the
cooperation of both branches of Government, both Houses, and
both parties. Thus, our plan is aimed at bridging the institutional,
philosophical, and political differences that separate us-which are
10
not as important as the overriding common objective of economic
recovery and sustained prosperity for America.
After 2 years of reducing much of the overspending, we have now
reached the bone in many places-programs where we will not
propose further reductions. My administration will now work with
the Congress in an effort to accommodate those special concerns of
the legislative branch that have caused unnecessary strains in the
past.
Thus, we will propose $3 billion more for education programs
than was proposed last year, and almost $2 billion more for employment and training. Proposals for new rescissions of alreadyenacted budget authority will be held to an absolute minimum.
This budget process must be a two-way street, for the problem of
large deficits is very real. Even when all reasonable measures are
applied to the vast detail of the budget, the resulting deficits are
large and progress toward reducing them slow. The political risks
entailed in these deficit-containment measures are considerable.
But the risk of doing nothing at all due to partisanship or legislative stalemate is much _greater. I therefore urge the Congress to
join with., my administration behind this common-sense strategy.
MEETING-AND RESHAPING-FEDERAL RESPONSIBILITIES
My administration seeks to limit the size, intrusiveness, and cost
of Federal activities as much as possible, and to achieve the needed
increase in our defense capabilities in the most cost-effective
manner possible. This does not mean that appropriate Federal
responsibilities are being abandoned, neglected, or inadequately
supported. Instead, ways are being found to streamline Federal
activity, to limit it to those areas and responsibilities that are truly
Federal in nature; to ensure that these appropriate Federal responsibilities are performed in the most cost-effective and efficient
manner; and to aid State and local governments in carrying out
their appropriate public responsibilities in a similarly cost-effective
manner. The Nation must ask for no more publicly-provided services and benefits than the private sector can reasonably be asked to
finance. [Specific proposals in program areas are discussed in more
detail in Part III.]
IMPROVING THE EFFICIENCY OF GOVERNMENT
The proposed freeze on program funding levels will compel program managers in every agency of the Government to find more
efficient ways of carrying out their programs. For too long, costs of
Federal operations have been mounting unchecked. Good management has not always been a priority of the executive branch. I
have been correcting that situation.
11
My administration has redirected programs to improve their efficiency and to achieve cost savings Government-wide. My administration is committed to improving management and reducing
fraud, waste, and abuse. The President's Council on Integrity and
Efficiency (PCIE), made up of 18 Inspectors General, reported that
almost $17 billion has been saved or put to better use in the past 2
years.
But the Government can go only so far with the seriously outdated and inefficient management! administrative systems that are
currently in place. One-third of our large-scale computers, for example, are more than 10 years old. A comprehensive management
improvement program was needed, so "Reform '88" was initiated.
We intend to upgrade and modernize our administrative systems to
make them more effective and efficient in carrying out the Government's business and serving the public.
We are already saving tax dollars by managing our almost $2
trillion yearly cash flow more effectively, collecting the Government's $250 billion of just debts, cutting Government administrative costs, modernizing Federal procurement systems, reducing internal regulations, controlling our office space and equipment more
prudently, and streamlining the workforce in many departments
and agencies. These cost-reduction efforts will continue.
CONTINUING REFORM OF OUR FEDERAL SYSTEM
The overall efficiency of Government in the United States can
also be improved by a more rational sorting out of governmental
responsibilities among the various levels of government-Federal,
State, and local-in our Federal system, and eliminating or limiting overlapping and duplication.
In 1981, the Congress responded to my proposals by consolidating
57 categorical programs into 9 block grants. In 1982, block grants
were created for job training in the Jobs Training Partnership Act,
and for urban mass transit in the Surface Transportation Act. The
initiatives to be proposed this year will expand on these accomplishments.
Four new block grants will be proposed, with assured funding for
major functions now addressed through categorical grants:
• A general Federal-State block grant covering approximately
15 categorical programs.
• A Federal-local block grant that would include the entitlement portion of the community development grant program
and the general revenue sharing program.
• A transportation block grant.
• A rural housing block grant.
12
Through the President's Task Force on Regulatory Relief and the
regulatory review process, the administration is eliminating and
simplifying regulations affecting State and local governments that
are burdensome, unnecessary, and counter-productive. These
changes have improved local efficiency and accountability and reduced program costs. Twenty-five reviews were completed during
the past 2 years by either the Task Force or by various Federal
agencies. Available data indicate that regulatory relief actions will
save State and local governments approximately $4 to $6 billion in
initial costs, and an estimated $2 billion on an annual basis. My
administration is also simplifying selected, generally applicable
crosscutting requirements that are imposed on State and local
governments as a condition of accepting financial assistance.
CONCLUSION
The stage is set; a recovery to vigorous, sustainable, noninflation.>ary economic growth is imminent. But given the underlying dete-. rioration in the overall budget structure that has occurred over the
past 2 years, only the most sweeping set of fiscal policy changes
could help to reverse the trend and set the budget on a path that is
consistent with long-term economic recovery.
If the challenge before us is great, so, too, are the opportunities.
Let us work together to meet the challenge. If we fail, if we work at
cross.purposes, posterity will not forgive us for allowing this opportunity to slip away.
RONALD W. REAGAN.
JANUARY 31, 1983.
13
Part I
ECONOMIC ASSUMPTIONS AND THE
BUDGET OUTLOOK
This section discusses the budget outlook and the economic assumptions that form the basis for that outlook. The first part
presents economic assumptions for calendar years 1983 through
1988. The second part discusses several aspects of the budget outlook.
Economic Assumptions
The economy and the budget are interrelated. Economic conditions significantly affect the budget, and the budget, in turn, influences economic conditions. The economic assumptions used for developing the budget estimates are presented in the following tables
to assist in understanding the budget estimates and projections and
the administration's fiscal strategy. These economic assumptions
are on a calendar year basis (as is customary for economic statistics) while the budget estimates are for fiscal years.
The economic landscape in 1982 was dominated by widespread
and rapid progress in unwinding the inflation spiral built up
during the past decade, as well as by the first sustained improvement in financial market conditions in more than 5 years. This
rapid abatement of inflation, however, was accompanied by an
economic recession of greater amplitude and duration than virtually any forecast anticipated a year ago.
Looking back on economic forecasts published by the administration, the Congressional Budget Office, and the Blue Chip Indicators
(an average of 43 private sector forecasts) in early 1982, to a
remarkable extent these projections were in agreement. But it
turned out that these Government and non-Government projections
were substantially wide of the mark in every key area.
The consensus projected real GNP, in constant 1972 dollars, to
rise from the fourth quarter of 1981 to the fourth quarter of 1982
by 3.0%, with a strong second-half showing, but actual output
declined by 1.2%. The projected 7.2% rise in the GNP implicit
14
price deflator was much larger than the actual increase of only
4.6%. Nominal GNP increased by a meager 3.3%, but the consensus forecast anticipated a more robust 10.4%. The unemployment
rate by yearend 1982 was projected in a range of 8.1 % to 8.8%, but
the average .rate for the fourth quarter turned out to be 10.7%.
Finally, the 91-day Treasury bill rate was expected to average
around 11-1/2% in last year's fourth quarter, but the actual rate
was 7.9%.
Most signs point toward recovery during the first half of 1983,
with greater momentum for economic growth developing during
the year's second half. From the fourth quarter of 1982 to the
fourth quarter of 1983, real output is expected to rise by 3.1%,
while nominal GNP is projected to increase by 8.8%. Both inflation
'" and interest rates are expected to consolidate the progress that
occurred in 1982. The rate of unemployment is projected to trend
downward during the year's second half, but for the year as a
whole the unemployment rate is projected to average 10.7%.
SHORT-RANGE ECONOMIC FORECAST
(Calendar years; dollar amounts in billions)
lIem
Gross national product:
Current dollars:
Amount ........................................................................................ .
Percent change: Fourth quarter over fourth quarter .................... ..
Constant (1972) dollars:
Amount ........................................................................................ .
Percent change: Fourth quarter over fourth quarter .................... ..
Incomes (current dollars):
Personal income .............................................................................. ..
Wages and salaries ......................................................................... ..
Corporate profits .............................................................................. ..
Price level (percent change fourth quarter over fourth quarter):
GNP deflator ......................................................................................
Consumer Price Index 2 ................................ ............ ........ .. .............. .
Unemployment rates (percent) :
Total: Fourth quarter 3...................................................................... .
Insured, annual average 4 ................................................................. .
Federal pay raise, October (percent) ' .................................................. .
Interest rate, 91-day Treasury bills (percent) ..................................... .
Actual
1981
Forecast
1982 '
1983
1984
2,938
9.6
3,058
3.3
3,262
8.8
3,566
9.2
1,503
0.7
1,476
-1.2
1,496
3.1
1,555
4.0
2,416
1,494
232
2,570
1,560
175
2,727
1,640
177
2,935
1,780
206
8.9
9.4
4.6
4.4
5.6
5.0
5.0
4.4
8.1
3.5
4.8
14.1
10.5
4.7
4.0
10.7
10.4
5.3
9.5
4.7
6.1
7.9
8.0
'Preliminary actual data.
2 CPI for uroan wage earners and clerical workers. Two versions of the CPI are now published. The index shown here is that currently used. as
required by law, in calculating automatic cost-{)f·living increases for indexed Federal plOgrams. The figures in this table ret~t the actual CPI for
Oecember 1982, released January 21, 1983, which was 0.7% lower than had been proiected; consequently, the cost-{)f·living adjustments
estimated in the budget are higher than the actual adiustments will be.
3 Percent of total labor force, including armed forces stationed in the U.S.
• This indicator measures unemployment under State regular unempioyment insurance as a percentage of covered employment under that
program. II does not include recipients of extended benefits under that program.
'General schedu~ cav raises become effective in October-the first month of the fiscal vear. Thus. the October 1984 cav raise will set new
pay scales that,will be in effect during fiscal year 1985. The October 1981 pay raise for military personnel was 14.3%.
• Average. rate. on new issues within period, on a bank. discount basis. These projections assume, by tonvention, that interest rates decline with
the rate of inflatIOn. They do not represent a forecast of Interest rates.
15
In contrast to the short-range forecast for 1983, the longer-range
assumptions for the 1984-1988 period are not intended as precise
forecasts of future economic conditions. Instead, they are trend
projections, consistent with the economic policy objectives of the
administration, that assume steady progress in reducing unemployment, inflation, and interest rates, and in sustaining strong real
growth during the outyears.
Although the growth of real output, productivity, and plant and
equipment investment has fallen below trend in recent years, it is
assumed that policies favoring budget restraint, capital formation
incentives, and a sustained fight against inflation are consistent
with a real output growth rate of 4% during the 1984-1988 period.
Consistent with this trend growth of real output, the unemployment rate is expected to fall gradually to a calendar year average
of 6.5% by 1988. Underscoring the commitment to a sustained
inflation reduction and a moderate rate of monetary expansion, the
growth of nominal GNP is estimated to decline gradually from
9.2% in 1984 to 8.6% in 1988. This moderate rate contrasts with
the inflationary 11.2% growth of nominal GNP during 1977-1981.
The inflation rate during the outyear period is assumed to range
between 4.5% and 5.0%. Interest rates are also projected to dec;:line.
LONG-RANGE ECONOMIC ASSUMPTIONS
(Calendar years; dollar amounts in billions)
Assumptions
Item
Gross national product:
Current dollars:
Amount .........................................................................................
Percent change: Fourth quarter over fourth quarter......................
Constant (1972) dollars:
Amount .........................................................................................
Percent change: Fourth quarter over fourth quarter......................
Incomes (current dollars) :
Personal income ................................................................................
Wages and salaries ...........................................................................
Corporate profits................................................................................
Price level (percent change fourth quarter over fourth quarter) :
GNP deflator ......................................................................................
Consumer Price Index 1 ................ ........ ... .. ..... .. .. ....... ... .. .. ..... .. .. . ... .. . .
Unemployment rates (percent) :
Total: Fourth quarter 2.......................................................................
Insured, annual average 3..................................................................
Federal pay raise, October (percent) 4...................................................
Interest rate, 91-day Treasury bills (percent) 5.....................................
1985
1986
1987
1988
3,890
9.0
4,232
8.7
4,599
8.7
4,995
8.6
1,617
4.0
1;682
4.0
1,749
4.0
1,819
4.0
3,142
1,921
246
3,377
2,090
296
3,661
2,281
316
3,956
2,483
329
4.8
4.7
4.5
4.5
4.5
4.5
4.4
4.4
8.5
4.2
6.0
7.4
7.8
3.8
5.7
6.8
7.0
3.5
5.6
6.5
6.2
3.2
5.5
6.l
1 CPI for urban wage earners and derical worlIers. Two version of the CPI are now pUblished. The IndeX shown here IS that currently used, as
requirea by law, in calculating automatic cost-of·living increases for indexed Federal programs. The manner in which this index measures housing
costs will change significantly in 1985.
2 Percent of total labor force, including armed forces stationed in the U.S.
• This indicator measures unemployment under State regular unemployment insurance as a percentage of covered employment under that
program. It does not include recipients of extended. benefits under that program.
.
.
.
'General schedule pay raises become effectIVe m October-the first month of the fiscal year. Thus, the October 1985 pay raise Will set new
pay scales that will be m effect during fiscal year 1986.
.
..
'Average rate on new issues within period, on a bank discount basis. These projections assume, by convention, that mterest rates declme With
the rate of inflation. They do not represent a forecast of interest rates.
16
No recovery factor is more important than the systematic reduction of inflation. A low and stable inflation rate during the years
ahead will create the balance, efficiency, and equilibrium necessary
to generate sustained economic recovery. The combined effects of
economic policies aimed at budget restraint, a permanent lowering
of tax rates, and a sustained reduction of inflation are creating a
strong foundation for economic growth in the 1980's.
Budget Program and Trends
Without the determined and sweeping corrections embodied in
the 1984 budget, the budgetary imbalance projected under current
services assumptions would have become an insuperable barrier to
non-inflationary economic recovery. The estimates 1 indicate that
the long-standing "structural imbalance" in the budget has been
reinforced by the combination of unanticipated economic and policy
developments over the past 2 years.
The prolonged recession and rapid disinflation have once again
dramatically reduced current law revenue projections. Estimated
receipts of $597.5 billion for 1983 are lower than actual receipts for
1981-meaning that even with the strong recovery assumed in the
5-year budget assumptions, revenues will be on a permanently
lo:wer path.
Meanwhile, Federal spending has risen steadily, despite the
major reductions in nondefense spending growth that have been
achieved over the past two budget cycles. Spending in 1983 will
exceed 1981 levels by 21 %, reflecting the steady buildup of defense
outlays, the explosion of debt service costs, and the continued,
largely unchecked rise in basic retirement and medical entitlement
programs.
While the resulting $225 billion total deficit for 1983 in part
reflects temporary recession pressures on the budget, the gap between outlays and receipts has now become so large-7% of GNPthat it threatens to gain self-reinforcing momentum. The total deficit
embodied in current law and policy would remain above 6% of GNP
through the next 5 years, and would be $315 billion even under
assumed economic conditions of full employment in 1988.
This massive structural imbalance in the current services budget
baseline under conditions of full employment poses the most serious challenge to fiscal policy iri recent times.
1 The "current services" concept provides a useful base against which budgetary
alternatives may be assessed. The estimates reflect the effects of inflation on virtually
all programs while assuming no changes in policy or enacted tax laws.
380-400 0 - 83 - 3 ,
17
QL 3
Sources of the structural deficit.-The large current services deficits projected for the outyears are not attributable to any single
source but, instead, represent the effects of cumulative economic
trends and fiscal policy decisions stretching over a decade.
The purely cyclical element of the deficit 2 peaks at $71 billion or
2% of GNP in 1983 and steadily diminishes thereafter as the
economy regains a full employment footing in the outyears.
The remaining deficit is "structural" and represents the longdeveloping policy imbalance that was embodied in the 1981 budget
inherited by the present administration. The 1981 tax claim on
GNP was at a historic high of 21 % and rising due to the built-in
escalation in the un indexed, progressive tax system. At that time,
it was widely believed that tax structure changes designed to cap
the long-term tax claim at 20% of GNP or less were essential to
restore sustained economic growth.
At the same time, the overall 1981 spending claim was 23.6% of
GNP, not including the 2-3 percentage point higher permanent
claim on GNP that would be needed to restore the Nation's badly
neglected and underfunded defense capabilities. Implicitly, then,
existing and unfunded spending claims exceeded 25% of GNP. As
thus measured, the implicit structural deficit that emerged from
the misdirected trend of economic and fiscal policy over the decade
of the 1970's was between 5% and 6% of GNP.
The inherited budgetary imbalance.-By standards of western industrial democracies, the United States was relatively late in developing a full-blown social insurance system of retirement income for
the aged, disability protection for workers, and medical care for the
elderly and poor. As recently as 1966, Great Britain devoted 1-1/2
times and West Germany 2-1/2 times the share of GNP for these
purposes as did the United States.
Over the last two decades, however, the social insurance system
of the early 1960's has been expanded into a vast social contract
upon which 54 million Americans depend for basic retirement and
disability income and health care services. In 1981 these commitments absorbed almost 7% of GNP-2.5 times their 1963 claim on
national income.
2 One way of examining the deficit is to divide it into two components: "cyclical" and
"structural." The cyclical component of the deficit arises from business cycle fluctuations; when the economy operates at less than full employment, budget receipts are
lower than would otherwise be expected (as individuals and corporations pay less
taxes) and outlays-mostly for unemployment compensation-are increased. The
structural deficit is the remainder of the actual deficit-the deficit that would
continue to exist even if the economy were operating at a high level of employment.
18
This vast expansion was not planned, nor was it grounded in an
over-arching policy blueprint. Instead, it is the product of incremental entitlement extensions enacted over two decades with bipartisan support. Today the social contract:
• provides income and medical care protection for 54 million
elderly and lower-income citizens compared to 19 million in
1963;
• provides average Federal benefits per couple of $10,000 per
year compared to $6,500 in 1963 (constant dollars); and
• finances average annual health care expenditures ranging
between $1,700 and $2,200 per beneficiary under medicaid and
medicare, respectively.
The historic record makes clear that the current financial
burden of this extensive social contract was not originally anticipated. Medicare was initially projected to cost about 0.6% of GNP,
but by 1982 this had increased to 1.7% of GNP. Similarly, the 20%
increase in social security benefits enacted in 1972 was based on
unrealistic assumptions. Furthermore, due to errors in the initial
system for indexing wages and benefits instituted in 1975, social
security replacement rates have climbed temporarily to almost 55%
compared to the 33% norm on which the system had been based.
Thus, by 1981 the combined cost of the social contract and other
entitlement programs had risen to about 10% of GNP-approximately two-thirds more than in 1971. This development posed serious long-range fiscal challenges that are only just now becoming
apparent.
By definition, entitlement programs develop vast networks of
dependency that cannot be altered precipitously without unacceptable social and human costs. As a consequence, their claim on the
budget and national economy tends to become relatively permanent and can be reduced only slowly over long periods of time.
To appreciably affect the budget outlook after 1985, policy
changes in the social contract and other entitlement programs
needed to be implemented during the initial budget cycle after
1981. Significant shifts, before 1985, in budget priorities or reductions in overall spending claims on GNP would have had to occur
largely in the remainder of the budget consisting of net interest,
discretionary programs, and national defense.
During the 1970's there was a marked shift in the composition of
the budget, as shown in the chart on the next page. Between 1970
and 1981, real defense and security spending declined by 19%, with
its claim on GNP dropping from 8.3% to 5.5%.
To be sure, defense spending should be based on assessment of
threats and the force structure and military capabilities required
to support national security objectives rather than an arbitrary
"share of GNP." Nevertheless, by the late 1970's it was clear that
overall national defense capabilities had eroded badly over a
19
UNDERLYING FISCAL IMBALANCE
SOCIAL CONTRACT AND
OTHER ENTITLEMENTS
NATIONAL DEFENSE
AND SECURITY·
llr----------------------.
11r----------------------.
10
10
PERCENT
PERCENT
1970 CLAIM ON GNP
4~
____________________
1970
~
1981
4~
____________________
1970
~
1981
·EXCLUOES RETIRED PAY
decade of unprecedented Soviet military expansion, and that the
1981 defense claim on GNP of 5.5% was wholly unsustainable if
national security objectives were to be met.
The decline in defense spending had been almost fully absorbed
by rising debt service costs, reflecting the deficit finance policies of
the previous decade and a steady upward drift in discretionary
spending for domestic health, social service, education, and energy
programs. Since the base of social contract and entitlement spending had ratcheted sharply upward during the previous decade, the
overall spending burden had increased from 20% to 23.6% of GNP.
Remedying the structural deficit in the inherited 1981 budget,
therefore, involved an imposing task: significantly reducing aggregate spending claims on GNP, while increasing defense within a
budget structure characterized by substantial inflexibility in its
social contract and entitlement base.
When this administration took office, fiscal policy was at a dead
end. Explicit domestic spending commitments and implicit national
defense requirements vastly exceeded the capacity of the existing
tax system to finance them. At the same time, public resistance to
direct tax increases and the national economy's incapacity to
absorb further doses of inflationary revenue generation left a growing unfunded budget gap that has not yet been closed.
20
The initial fiscal and economic policy plan of the administration
was designed to break this impasse by means of a fundamental
policy redirection.
Redirection of fiscal policy launched in 1981.-The administration's initial plan rested on four fundamental premises:
• The restoration of national defense capabilities could not be
delayed because the decade-long deterioration in pay and
readiness and the lag in both strategic and conventional modernization had reached an intolerable state.
• Only an immediate, rapid, and sustained expansion of GNP
could overcome the inherited fiscal dilemma. The economy
would grow faster than the budget, causing the aggregate
spending claim to fall.
• The nondefense spending claim on GNP would fall dramatically in the near term in response to the sweeping spending
cutback and budget reform proposals contained in the March
1981 budget revisions.
• The transitions from rising to falling inflation and from low
real growth to rapid output expansion would occur immediately and simultaneously, and without intervening financial
and economic disturbances. Consequently, the projected
outlay claim on GNP attributable to cyclically sensitive expenditures-net interest and unemployment insurance-was
projected to fall significantly from the 1981 level.
After 2 years of fiscal policy change and economic results, the
current services budget projections vary substantially from the
path envisioned in the original plan. Most of the variance between
the planned path and the current outlook can be explained by
seven significant variables.
Drastic shortfall of nominal GNP.-The March 1981 economic
projections did not assume a deep or prolonged recession in response
to moderate monetary restraint. Consequently, real GNP was
projected to be $174 billion higher by the fourth quarter of 1983 than
it had been in the first quarter of 1981.
By contrast, current economic assumptions project that real GNP
will not regain that actual 1981 level until the end of 1983meaning that output will be 10% lower than originally projected.
In effect, the severe dis inflationary correction that has actually
occured has set the economy 2 years behind its originally anticipated recovery path.
Thus, the severe unanticipated recession of 1981-1982 and the
projected modest recovery for 1983, in combination with the rapid
fall in the inflation rate, have resulted in a dramatically lower
nominal GNP path than projected in the original budget plan.
21
Nominal GNP is now estimated to be 12.5% or $482 billion lower
in the fourth quarter of 1983 than first assumed.
Morever, current services outlay projections are now about
14.5% higher than originally planned. In combination, a significantly lower GNP base and substantially higher spending level
place a far greater relative spending burden on the economy than
originally planned.
Dramatic reduction in receipts due to lower GNP and deeper
policy reductions.-The current law receipt path is now estimated
to be $529 billion lower over 1983-1986 than projected in March
1981. This reflects primarily the shrunken revenue yield from the
far lower path of nominal income just described.
Cyclically sensitive outlays: Upward adjustment in GNP claim.The original fiscal plan assumed a smooth shift between a stagnant, high-inflation economy and a non-inflationary high-growth
economy. Outlays for unemployment insurance and debt service
have increased by nearly $234 billion over 1983-1986-largely due
to the turbulent economic adjustment that has actually occurredcompared with outlay projections under the smooth transition
originally assumed.
The social contract claim on GNP has continued to rise.-Despite
some modest policy savings achieved in medicare and medicaid
over the past two budget cycles and the phaseout of social security
student benefits enacted in 1981, under current law the social
contract claim on GNP will rise a full percentage point by 1988
compared to 1981.
In the May 1981 social security package and the February 1982
budget proposals, the administration did propose reforms that
would have reduced social contract outlays by $40 billion in 1987 or
nearly 1 % of GNP-thereby maintaining the 1981 claim at approximately a constant level. However, the social security package
was not acted upon by the Congress and the medicare/medicaid
reforms adopted in the 1982 reconciliation bill amounted to only
about one-third of the proposed 1987 savings.
Given these and other policy constraints, the social contract base
of the budget, which rose dramatically during 1962-1981, has
proven to be not only "locked in" but a rising claim on GNP.
Moreover, the failure to achieve any significant reforms of the costof-living adjustment mechanism or other aspects of the benefit
structure in 1981 and 1982 means that the social contract has
become an even larger constraint in the overall budget envelope
than it was in 1981.
22
Major drop in nondefense discretionary spending claim.-The
most significant changes in budget policy since 1981 have occurred
in the discretionary spending sector. Estimated 1983 outlays of
$144 billion will be 9% lower than the $158 billion spent in 1981largely reflecting the major spending reductions, enacted in 1982,
for energy, employment and training, education, and social service
programs. While the Congress resisted a second round of discretionary spending cuts proposed for 1983, the alternate "freeze" policy
adopted in the 1983 budget resolution has resulted in nominal
spending levels drifting upward only slightly.
The claim of other entitlement spending has fallen.-Entitlements outside the social insurance system consist of two distinct
groups: the means-tested programs such as aid to families with
dependent children (AFDC), supplemental security income (881),
food stamps, child nutrition and veterans pensions; and the Federal
retirement! disability programs including civil service and military
pensions and veterans disability compensation.
The rapid rise in the real cost of these programs experienced
during the 1970's has come to a halt. After having more than
doubled in real terms from 1970 to 1981, constant dollar costs
under current law are expected to remain virtually unchanged
between 1981 and 1988.
The major source of this slowdown is in means-tested programs.
Constant dollar outlays will fall 2.5% per year over 1981-1988
compared to an increase of 7.4% during the 1970's.
This marked reversal of trend reflects in part the slowdown in
case load growth for all programs, and an actual decline in the case
of veterans pensions. But the primary cause is that the continuous
legislative liberalization and entitlement expansions that characterized policy in the 1970's have been supplanted by policy reforms
and retrenchments initiated by the administration over the past
two budget cycles. As a consequence, about 16% of the real program growth over 1970-1981 will have been eliminated under current law by 1988.
Given the fact, however, that the social contract claim on GNP
continues to rise under current law, the overall entitlement claim
will stand at 10.1% by 1988, slightly above its 1981 level. Thus,
after two budget rounds and the achievement of significant program revisions in some areas, the massive 1970's growth in the
overall entitlement base remains intact within the budget structure, meaning that the major contributor to the 1981 budget disequilibrium has not yet been contracted nor its claim on GNP
reduced.
23
The structural imbalance in the 1984 current services baseline.Due to both the economic and policy developments described in the
preceding sections, the structural disequilibrium that characterized
the inherited 1981 budget has not been remedied-and the current
services outlook for 1984-1988 extends and perpetuates it. The structural deficit remains as it was 3 years ago-after allowance for
needed defense spending restoration and a permanent tax claim
under 20% of GNP. Its reduction and eventual elimination constitute the overriding challenge to economic and fiscal policy in the
years ahead.
The 1984 budget recommendations: A comprehensive program to
close the structural deficit.-Given the underlying condition of the
overall budget structure, only the most sweeping set of fiscal policy
initiatives could possibly reverse the trend and set the budget on a
path that is consistent with long-term econo:r;nic recovery.
DEFICIT OUTLOOK AT A GLANCE:
BASELINE VS. 1984 BUDGET PLAN
$ BILLIONS
300
117
1984
1985
1986
_ _ _ _ _ _- L _ _ _ _ _ _
~
~
______
~
________
~
______
1983
~
~
~
100
1987
1988
The 1984 budget plan, discussed in Parts II and III below, contains four essential features:
• An immediate freeze on pay,\ cost-of-living adjustments, aggregate discretionary spending, and a variety of reimbursement
formulas and payments, which will reduce the deficit by
24
$19 billion in 1984 and $164 billion over the next 5 years.
Along with other measures these steps will result in no real
growth in aggregate spending for the first time since 1970.
• A broad program of structural reform of entitlements and
transfer payments focused on health care, social security solvency, Federal retirement programs, and means-tested benefits. In combination, these measures will reduce the deficit by
$19 billion in 1984 and $228 billion over the next 5 years.
• A standby revenue mechanism designed to go into effect if the
deficit remains above 2.5% of GNP in 1986 and beyond. This
"deficit insurance" measure is intended to reassure financial
markets that the structural deficit will be closed.
• Maintenance of the defense buildup while achieving savings
due to lower inflation, the 1984 pay freeze and various program economies totaling $55 billion over the next 5 years.
THE 1984 FISCAL PLAN
(In billions of dollars)
1984
1985
1986
1987
1988
Current services deficits ..................................................
249
267
284
308
315
Outlay proposals:
Programmatic reductions ............................................
- 33
- 46
-S4
-67
-73
13 +-__
- 22 l--_:.c:.
Net interest savings ....................................................1--_--=24-__
-_6-+-_- _
-33
Total outlay effect..................................................
- 3S
- S2
-66
- 89
- 106
Receipts proposals:
Structural reforms 1 •.. •. . •. . •..•. . •..•... ...• .. •..... . ............... . .
-11
- 11
-32
-IS
-18
-49
-46
-SI
Contingency tax plan .................................................. "'..:..::
...:..::
...:.:.:.
... :.:.:.
....:.::j•. ""..•.:.c
...:..::
.. .:.:.:.
... :.:.:.
... -+
.. _---'-'+_---''-+-_-=-:c
-67
Total receipt effec!.................................................
- 11
-11
-84
-61
- 127
-IS6
-189
Total deficit reductions ........................................... 1--.:-~46+--=-~6~3+--=-~+--=..!~l-~~
Proposed budget deficit ...................................................
203
205
157
152
126
On-budget deficit ...............................................................
189
194
148
142
117
'Primarily receipts from bipartisan social security plan and taxation of health insurance premiums.
Outlook for closing the structural deficit with the 1984 budget
plan.-Both the short- and long-term measures contained in the
President's comprehensive fiscal plan address those factors that
have contributed to the continued deterioration of the Federal
budget's structural imbalance. A comparison of the plan's details
with the current services baseline shows that:
• As a result of the health care reforms and social security
solvency plan, social contract spending is reduced by about
$15 billion by 1988.
• Outlays for other entitlements are reduced by $11 billion due
to the array of structural reform measures.
• By virtue of the continued freeze on aggregate discretionary
spending and sharp curtailment of off-budget outlays, spending for this component falls an additional $26 billion by 1988.
380-400 0 - 83 - 4 ,
25
QL 3
• Primarily as a result of the freeze on farm price supports and
the PIK program, the residual domestic spending category
declines by $10 billion by 1988.
• Due to the social security solvency measures, private insurance health cap, and the stand-by revenue measure, receipts
rise by $84 billion by 1988, but the claim on GNP still remains below its 1981 level of 20.9% .
• As a consequence of all of the above improvements, net interest costs fall dramatically-by more than $76 billion over
1984-1988.
The overall budget plan, then, balances three fundamental objectives that previously have not seemed easy to reconcile:
• The overall structural imbalance in the budget is substantially reduced, with the 1988 deficit falling by three-fifths compared to the current services baseline. This puts fiscal policy
on a path consistent with economic recovery and long-run
budgetary equilibrium.
• The internal shift in budget priorities toward adequate funding of national defense is maintained, with the overall nondefense spending claim falling by 2.9 percentage points compared to the 1981 level. Fully half of the excessive growth in
the nondefense claim on GNP over 1970-1981 is eliminated by
1988-with the prospect of further declines beyond the budget
period as the economy continues to grow and permanent
spending reforms take hold.
• The receipt claim on GNP-even if the stand-by mechanism is
triggered-remains nearly 2.6 percentage points lower than
would have been the case with pre-1981 tax law.
26
Part II
BUDGET RECEIPTS
This section describes the major sources of budget receipts and
the legislative proposals and administrative actions affecting them.
The economic assumptions underlying the estimates are presented
in Part 1.
Summary
Total budget receipts in 1984 are estimated to be $659.7 billion,
an increase of $62.2 billion from the $597.5 billion estimated for
1983. Receipts in 1985 and 1986 are estimated to be $724.3 billion
and $841.9 billion, respectively. These estimates include the effects
of:
• the income tax reductions and other tax changes provided in
the Economic Recovery Tax Act of 1981;
• the tax revisions and improvements in compliance and collection provided in the Tax Equity and Fiscal Responsibility Act
of 1982;
• the 5-cent-per-gallon increase in the excise tax on gasoline
and diesel fuel, and other tax changes provided in the Highway Revenue Act of 1982;
• the proposed bipartisan social security plan;
• the proposed contingency tax plan; and
• other receipts measures that are included in the administration's budget proposals.
Composition of budget receipts.-The Federal tax system relies
predominantly on income and payroll taxes. In 1984:
• Income taxes paid by individuals and corporations are estimated at $295.6 billion and $51.8 billion, respectively. Combined, these sources account for 52.7% of total 1984 budget
receipts.
• Social insurance taxes and contributions-composed largely of
payroll taxes levied on wages and salaries, most of which are
paid equally by employers and employees-will yield an estimated $242.9 billion, 36.8% of the total.
27
Excise Taxes and
Other Receipts
• Excise taxes, including the crude oil windfall profit tax, are
expected to provide $40.4 billion, 6.1 % of the total.
• Estate and gift taxes, customs duties, and miscellaneous receipts are estimated at $29.1 billion, the remaining 4.4% of
the total.
Under the tax policy and economic assumptions presented in this
budget, the income tax share of total receipts is projected to decline
to 51.4% by 1986, 4.8 percentage points less than for 1982. This
decline is the net effect of a 5.6 percentage point decline in the
individual income tax share that is partially offset by a 0.8 percentage point increase in the corporation income tax share to 8.8%.
Social insurance taxes and contributions are projected to rise as a
share of total receipts from 32.6% in 1982 to 36.2% in 1986. The
projected share of all other receipts increases by 1.2 percentage
points between 1982 and 1986.
Enacted Legislation
Three major tax laws have been enacted since the administration
took office in January 1981. The first, the Economic Recovery Tax
Act of 1981, is an integral part of the administration's economic
recovery program. This Act, which provides incentives for work,
28
saving, and investment, is estimated to reduce receipts by $82.6
billion in 1983, $130.3 billion in 1984, $158.2 billion in 1985, and
$202.3 billion in 1986. The major provisions of this Act include an
across-the-board reduction in individual income tax rates and other
reductions in individual income taxes; the annual adjustment of
the zero bracket amount, the personal exemption, and individual
income tax brackets for inflation beginning in 1985; and the accelerated cost recovery of capital expenditures.
The second major tax law, the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), improves the fairness of the tax system
while preserving the incentives for work, saving, and investment
enacted in 1981. This Act increases receipts primarily by eliminating unintended benefits and obsolete incentives, increasing taxpayer compliance, and improving collection techniques. The provisions
of this Act are estimated to increase receipts by $17.3 billion in
1983, $38.3 billion in 1984, $42.2 billion in 1985, and $52.1 billion in
1986.
The Highway Revenue Act of 1982 is the third major tax law
enacted since January 1981. The main revenue provision of the Act
increases the excise tax on gasoline and diesel fuel from 4 to 9
cents per gallon effective April 1, 1983. The increased receipts to
the highway trust fund will be used to finance highway, bridge,
and mass transit construction and repair. The Act is estimated to
increase receipts by $1.7 billion in 1983, $3.8 billion in 1984, and
$3.9 billion in 1985 and 1986.
Despite the increases provided in TEFRA and the Highway Revenue Act, taxes have been reduced by $445.9 billion over the 19821986 period relative to pre-ERTA tax law.
NET EFFECT OF ENACTED lEGISLATION
1
(In billions 01 dollars)
1981
1983
1984
1985
1986
19811986
Economic Recovery Tax Act of 1981 ....................... - 35.6 - 82.6 -130.3 - 158.2 - 202.3 -609.0
Tax Equity and Fiscal Responsibility Act of 1982 ....
17.3
38.3
42.2
52.1
149.9
*
Highway Revenue Act of 1982 ................................ ................
1.7
3.8
3.9
3.9
13.2
Net tax reduction ............................................ - 35.6
- 63.5
- 88.2 -112.1 - 146.3 - 445.9
*$50 million or less.
'These estimates are based on the direct effect only of legislative changes at a given level of economic activity. Induced effects are taken into
account for forecasting incomes, however, and in this way affect the receipts estimates by major source and in total.
Receipts Proposals
Bipartisan social security plan.-The administration supports
the proposed bipartisan plan to restore social security reserves to
safer levels. The proposed plan ensures the future solvency of the
29
trust funds through a combination of revenue increases and benefit
reductions over the next 7 years.
Contingency tax plan.-The administration proposes a contingency tax plan to become effective October 1, 1985, if economic growth
sufficient to limit the deficit to 2J<l% of GNP does not materialize.
The contingency taxes consist of a surcharge on individuals and
corporations approximately equivalent to 1% of taxable income,
and an excise tax on oil.
Contributions to civil service retirement-To ensure that employers and employees each pay 50% of retirement costs, several
changes in employer and employee contributions to civil service
retirement are being proposed.
Other.-The administration also proposes that:
• employer-paid health insurance premiums in excess of $175
per month for a family plan ($70 for a single plan) be taxed;
• special tax incentives be provided economically depressed
areas designated as "enterprise zones";
• a jobs tax credit be provided employers who hire the longterm unemployed;
• earnings on savings deposited in special accounts to pay
future higher education expenses be exempt from tax; and
• a tuition tax credit be provided for a portion of tuition expenses paid to qualified private elementary and secondary
schools.
NET EFFECT OF PROPOSED LEGISLATION
1
(In billions of dollars)
1983
1984
Bipartisan social security plan ................................................................................ ............ . 8.2
Contributions to civil service retirement .............................................................................. 1.2
Taxation of health insurance premiums ............................................................................... 2.3
Enterprise zone tax incentives ................................................................................ ............. - 0.1
Jobs tax credit ......................... ...... ...... ......................... .........................................
* -0.2
Higher education tax incentive ............................................................................................
*
Tuition tax credit ................................................................................................... ............ . - 0.2
Other......................................................................................................................
*
*
*
*
11.2
1985
1986
5.8
2.3
4.4
-0.4
-0.2
- 0.1
-0.5
8.9
2.1
6.0
-0.8
- 0.1
- 0.2
- 0.8
*
r---~---+----r---
Subtotal....................................................................................................
11.2 11.3
Contingency tax plan.............................................................................................. ............. ............. .............
Total.........................................................................................................
11.3
15.3
46.0
61.3
"50 million or less.
'These estimates are based on the dirett eHett only of legi~ative changes at a given level of eeonomic activity. Induced eHetts are taken into
account for foretasting incomes, however, and in this way affett the reeeipts estimates by major source and in total.
30
Part III
MEETING NATIONAL NEEDS: THE FEDERAL
PROGRAM BY FUNCTION
This section discusses the budget in terms of national needs,
which are broad categories of programs that provide a ' coherent
basis for analyzing and understanding the budget. The budget
amounts are grouped together in functions so that similar Federal
activities can be considered in terms of the national needs addressed. Generally, these groupings are made without regard to
agency organizational distinctions. The Congress uses these functional categories in developing concurrent resolutions on the
budget.
In addition to the functions that address national needs, three
other categories are shown. Net interest, allowances, and undistributed offsetting receipts do not address specific national needs, but
are necessary to cover the entire budget.
While budget outlays are the most obvious measure of the Federal Government's use of resources, some Federal activities are not
covered by the budget outlay totals. These include outlays of offbudget Federal entities, loan guarantees, regulation, tax expenditures, and other provisions of the tax laws. Some of these activities
are described in the national needs discussions that follow.
Off-budget Federal entities are federally owned and controlled,
but their transactions are excluded from the budget totals under
terms of law. Their spending is part of total Federal spending, and
Treasury borrowing to finance their outlays adds to the Federal
debt. Spending by these entities (primarily for loans) does not differ
in nature or effect from other Federal spending. Outlays of offbudget entities are shown near the end of this section.
Guaranteed loans are loans for which the Government guarantees the payment of the principal or interest in whole or in part.
Loan guarantees may significantly 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. Loan guarantees
do not generally result in budget outlays unless a default occurs.
Through the credit budget, which has been in place for 4 years, the
31
administration proposes limitations on loan guarantees and direct
loans.
Tax expenditures are 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
discussed at the end of this section.
NATIONAL DEFENSE
This function includes activities directly related to the defense
and security of the United States. To meet the need for strengthened military capabilities, the administration requests an increase
in budget authority for national defense from $245.5 billion in 1983
to $280.5 billion in 1984. Outlays are estimated to be $214.8 billion
in 1983, rising to $245.3 billion in 1984.
Conventional forces.-Conventional forces are required to deter
nonnuclear aggression or to respond to aggression if deterrence
should fail. The major elements supporting these forces are pay
and benefits for military personnel; purchase, operation and maintenance of conventional arms such as ships and aircraft; procurement of ammunition and spare parts; and training. Budget authority of $148.0 billion is requested for these forces in 1984. Major
acquisitions include new helicopters and M-1 tanks for the Army,
new Navy ships, and various Air Force aircraft.
Strategic forces .-Strategic forces are required to deter Soviet
conventional or nuclear attack against the United States and its
allies. The budget includes proposals that continue the administration's plan for modernizing strategic forces with the MX Peacekeeper, a new intercontinental ballistic missile; procuring Trident
submarines (which carry ballistic missiles); and developing and
purchasing air-launched cruise missiles and the B-1B, a new
manned bomber. The strategic program also calls for developing an
advanced technology (stealth) bomber; modernizing warning and
strategic defense systems; and developing and procuring reliable
command, control, and communication systems.
Supporting activities.-Supporting defense activities include research and development, training and medical services, central
supply and maintenance, and other overhead and logistic activities.
Budget authority of $97.3 billion is requested for these activities in
1984. Defense research and development programs are intended to
32
National Defense Pro&rams (Budget A~)
$ Billions
$ Billions
~~======~-=--~~~~~~======~~~
Atomic Energy Defense
and Defense-Related
200
devise new and better weapons systems to meet changing military
needs. They involve a broad range of activities, from basic research
to construction of full-scale prototypes of weapons systems.
Atomic energy defense and defense-related activities.-The national defense function includes development, testing, and production
of nuclear weapons and reactors for nuclear-powered ships. Budget
authority of $7.1 billion is requested for this work in 1984.
Other defense-related activities include stockpiling strategic materials, developing civil defense plans, and maintaining a stand-by
selective service system.
INTERNATIONAL AFFAIRS
United States foreign policy is directed toward achieving world
peace, built on international security and prosperity. It seeks a
world in which individuals may enjoy political and economic freedom. Outlays for international affairs programs are expected to
increase from $11.9 billion in 1983 to $13.2 billion in 1984.
http://fraser.stlouisfed.org/
380-400 0 - 83 - 5
Federal Reserve Bank
of St. Louis
33
, QL 3
Foreign aid.-Outlays for international security assistance programs are estimated to increase from $4.0 billion in 1983 to $4.6
billion in 1984. These programs serve to strengthen allied and
friendly governments where the United States has special security
concerns. In the face of increasing challenges to U.S. interests, the
budget provides for a substantial increase in security assistance,
both military and economic, and an improvement in the financial
terms on which it is provided. Major programs in this area are the
economic support fund , with estimated outlays of $2.9 billion in
1984, and foreign military sales credit, with estimated outlays of
$5.2 billion in 1984, of which $4.2 billion are off-budget outlays.
Outlays for foreign economic and financial assistance programs
are estimated to increase from $4.3 billion in 1983 to $4.5 billion in
1984. Programs include both multilateral and bilateral assistance
to help meet the development and humanitarian needs in poorer
countries and to encourage the expansion of a market-oriented
international economic system. Multilateral development assistance is carried out by the World Bank group and regional development banks, the United Nations, and other international organizations.
Bilateral development assistance programs are largely carried
out by the Agency for International Development (AID). The administration's initiatives in the AID program include increased use
of American and recipient country private sector resources. The
34
estimated outlays for AID of $1.8 billion in 1984 support economic
growth in developing countries through projects in agriculture,
population, health, education and energy. Public Law 480 food aid
supports security assistance, export market development, and humanitarian relief. Outlays are estimated to be $1.1 billion in 1984.
International financial programs.-The Export-Import Bank provides direct loans and loan guarantees to encourage the export of
U.S. goods and services. New direct loans are proposed to be $3.8
billion in 1984. The administration will seek a supplemental direct
loan authorization of up to $2.7 billion for 1984 if necessary to meet
subsidized foreign officially supported competition. The other major
international financial program is the foreign military sales trust
fund. The budget includes estimated outlays of $1.4 billion in 1984
for all international financial programs.
Other.-Estimated outlays of $1.7 billion in 1983 and $2.0 billion
in 1984 are proposed for the conduct of foreign affairs. Emphasis
continues to be placed by the Department of State on improving its
effectiveness with additional officers and staff and improved automated information and communication systems.
Foreign information and exchange activities are also scheduled
for expansion. The U.S. Information Agency will start a multiyear
expansion and modernization of Voice of America facilities in 1983.
It will also undertake a major new effort to foster the development
of democratic values and institutions abroad. Outlays of $0.7 billion
in 1983 and $0.8 billion in 1984 are estimated for all foreign information and exchange activities.
GENERAL SCIENCE, SPACE, AND
TECHNOLOGY
The programs in this function seek to ensure the long-term scientific and technological strength of the Nation. This need is met by
fund~ng basic research, supporting space research and technology,
and developing a space transportation system based on the Space
Shuttle. Estimated outlays are expected to increase from $7.8 billion in 1983 to $8.2 billion in 1984.
General science and basic research.-Outlays are estimated to
increase from $1.6 billion in 1983 to $1.9 billion in 1984 for scientific and engineering research supported by the National Science
Foundation and for energy-related general science programs currently supported by the Department of Energy. This increase reflects the administration's commitment to support basic research
35
for the advancement of science and the training of future scientists
and engineers.
The proposed increase also emphasizes the upgrading of research
equipment at universities, and joint efforts with State and local
governments and the private sector to improve the teaching of
science and mathematics in secondary schools.
Space.-The Federal civilian space programs are primarily the
responsibility of the National Aeronautics and Space Administration (NASA). The administration is committed to making the Space
Shuttle fully operational and cost effective in providing routine
access to space. The successful launch by the Space Shuttle of two
commercial spacecraft in November 1982 marked the first operational use of the Shuttle. In 1984, NASA will continue to develop
its currently planned Space Shuttle fleet of four orbiters.
Increased funding is proposed for other space activities, including
the new Venus radar mapper project, the Galileo mission to Jupiter, and further work on the space telescope program. Other programs will continue to develop space technology to study the
Earth's surface and atmosphere, advance satellite communications
technology, and investigate the potential of materials processing in
space. Outlays for all space programs are estimated to be $6.4
billion in 1984.
36
ENERGY
The programs in this function seek to encourage efficient energy
production and use, and limit the Federal Government's role to
such responsibilities as support for long-term research and the
strategic petroleum reserve. The administration believes that
sound public policy does not require large amounts of Federal
spending but, rather, recognizes that the private sector makes most
of the key decisions about using and producing energy.
Total outlays for energy are estimated to be $3.3 billion in 1984,
a 27% decrease from 1983 levels. The reductions result from removing the Government from activities, especially in technology
development and demonstration, that are better done and financed
by the private sector.
Energy supply.-Programs in this category include energy research and development, direct energy production programs, and
incentives for private investment in synthetic fuels production.
Strategic
Petroleum
\
\ /Strategic
. / Petroleum
\. Reserve *
,,
,,
,
'"",-
37
The administration requests increased support for basic research
that private industry lacks the incentive to finance. It continues to
support long-term development programs, such as nuclear fusion,
but sharply reduces support for short-term technology developmfmt
activities. As a result, estimated outlays for energy supply research
and development decrease from $3.0 billion in 1983 to $2.4 billion
in 1984.
The budget includes an estimated $0.3 billion in outlays for
permanent disposal of commercial nuclear waste. This program
will be financed by a user fee paid by operators of nuclear power
plants.
The Federal Government directly produces and sells enriched
uranium for nuclear power plants; oil from Government-owned
fields in California and Wyoming; and electricity through the Tennessee Valley Authority and five regional power marketing agencies. Receipts for these programs are expected to exceed outlays by
$0.4 billion in 1984.
As part of its credit budget, the administration will limit the
credit activity of the Rural Electrification Administration (REA).
REA provides loans directly to eligible rural electric and telephone
systems for expansion and maintenance of operations.
Energy conservation.-The unfettered play of market forces represents the best way to achieve the efficient use of energy. However, a limited Federal role does exist in supporting research and
development that seeks to improve energy use in industrial processes, buildings, and transportation. Outlays in 1984 are estimated
to be $0.1 billion for these activities. Additional outlays of $0.2
billion are estimated from spending the balances in several State
and local energy conservation grant programs proposed for elimination.
Emergency energy preparedness.-Although the administration
relies primarily on market forces to allocate oil supplies, it recognizes that the Government can play a helpful role during periods
of severe supply disruptions by developing a strategic petroleum
reserve. The reserve is expected to contain 357 million barrels by
the end of 1983, ·and 410 million barrels by the end of 1984. Offbudget outlays for oil acquisition are estimated at $1.9 billion in
1984. On-budget outlays in 1984 for construction of reserve storage
facilities are estimated to be $0.2 billion.
Other.-Federal energy activities currently located in the Department of Energy will be proposed for reassignment to other executive departments and agencies.
Estimated outlays of $0.5 billion in 1984 are included for the
Nuclear Regulatory Commission to regulate the nuclear power industry effectively and efficiently.
38
NATURAL RESOURCES AND ENVIRONMENT
The programs in this function are designed to ensure the responsible management and conservation of the Nation's natural resources. Outlays are estimated at $9.8 billion in 1984, a $2.3 billion
decrease from 1983 that is in large part due to the growth of
offsetting receipts, as shown in the accompanying table.
Pollution control.-Outlays for Environmental Protection Agency
(EPA) programs unrelated to energy are estimated to be $4.0 billion in 1984. This reflects EPA's continued emphasis on increased
management efficiencies and accelerated delegation of environmental programs to the States. Outlays for the sewage treatment grant
program are estimated to decrease by $0.3 billion in 1984 as a
result of completing projects built under previous grants, although
$2.4 billion in new budget authority is requested in 1984. Outlays
dedicated to cleaning up abandoned hazardous waste sites and
chemical spills are estimated to be 46% higher in 1984 than in
1983.
OUTLAYS fOR NATURAL RESOURCES AND ENVIRONMENT
(In billions of dollars)
Pollution
control
1974 .............................
1975 .............................
1976 ..............................
1977 .............................
1978 ..............................
1979 ... ........... .............
1980 .. ..........................
1981 .... ........................
1982 .............................
1983 estimate ................
1984 estimate ................
1985 estimate ................
1986 estimate ................
2.0
2.5
3.1
4.3
4.0
4.7
5.5
5.2
5.0
4.3
4.1
4.0
3.8
Conservation, Recreation and Other
Water resources
Outlays
2.3
2.7
2.8
3.3
3.5
3.9
4.3
4.3
4.1
4.0
3.8
4.1
4.3
Receipts
-
-
*
*
*
*
*
*
*
-0.1
-0.1
-0.1
-0.5
-0.6
-0.7
Total
2.2
2.6
2.8
3.2
3.5
3.9
4.3
4.2
4.0
4.0
3.3
3.5
3.6
Outlays
2.5
3.2
3.4
4.0
4.9
5.3
6.0
6.3
6.3
6.7
6.0
5.9
5.9
Receipts
- 0.4
- 0.3
-0.4
-0.7
-0.3
- 0.7
-0.6
-0.6
-0.5
-0.8
-1.0
-1.0
-1.1
Total
2.1
2.9
3.0
3.3
4.6
4.7
5.4
5.7
5.7
5.9
5.1
4.9
4.8
Other
offsetting
receipts
-0.7
-0.7
-0.8
-0.8
-1.1
- 1.2
-1.4
-1.6
-1.9
-2.1
- 2.6
- 3.1
-3.5
Total
outlays
5.7
7.3
8.1
10.0
10.9
12.1
13.8
13.5
12.9
12.1
9.8
9.3
8.7
* $50 million or less.
Water resources.-The Federal Government plans, constructs,
and maintains water resource projects such as dams, navigation
channels, and reservoirs. For the Army Corps of Engineers, the
proposed budget includes a reduction in estimated outlays of $0.3
billion in 1984. The budget will maintain the construction schedule
for almost all current projects and refl~cts the fact that many
water projects are being completed. Five new construction starts
39
are included for the Corps of Engineers in 1984; a substantial part
of the cost of each new project will be borne by non-Federal sponsors.
Increased user fees will be proposed to recover capital and operating expenses of port and waterway pt:ojects, and to maintain
Corps of Engineers recreation facilities.
Conservation and land management.-Programs in this category
provide management of surface resources on public lands, and of
federally owned mineral deposits. Outlays for conservation and
land management are estimated at $2.2 billion in 1984, a decrease
of $0.5 billion from 1983.
Proposed budget authority for administration of the Outer Continental Shelf oil and gas leasing program will decrease in 1984 due
to simplified lease procedures. Leasing programs to develop tar
sands and oil shale are also underway. Receipts from the sale of
unneeded public lands are estimated to yield $0.3 billion in 1984,
and appear in the undistributed offsetting receipts section.
Recreational resources.-The administration seeks to improve
and maintain existing nationally significant recreation resources,
but not to acquire new public lands or facilities. Outlays to maintain and operate national parks, recreation areas, historic sites,
and wildlife refuges are estimated to be $0.7 billion in 1984.
Legislation will again be proposed to increase National Park
Service and Forest Service fees for use of recreational facilities.
Receipts of $3.2 billion are expected in 1984 from sales of federally owned timber, sales of mineral leases, and royalties on extracted
Federal minerals.
AGRICULTURE
Federal agricultural price support, credit, and insurance programs promote economic stability on the farm. Productivity of the
agricultural sector is enhanced through research and other services. Total outlays for agriculture in 1984 are expected to be $12.2
billion, a decrease of $8.9 billion from 1983.
Farm income stabilization.-Price support, crop insurance, and
agricultural loan programs are expected to change due to the administration's farm proposal for 1984, in particular "PIK" (payment-in-kind). PIK provides farmers with commodities, instead of
cash, in return for reducing production. PIK is proposed for 1983
and 1984 due to increased supply and lower anticipated demand in
farm markets. The new farm program would reduce commodity
40
price support and related program outlays from $18.3 billion in
1983 to $9.3 billion in 1984.
Federal crop insurance is the Government's primary means of
alleviating the harm to producers from crop losses caused by natural hazards. The agricultural credit insurance fund also makes
direct loans available to farmers, primarily for disaster relief.
Agricultural research and services.-Agricultural research programs help to increase productivity by developing new knowledge
about crops and animals. Federal agricultural research in 1984 will
place higher priority on long-term basic research with potential for
high payoff. Short-term applied research and development, more
appropriately financed by private industry, will receive reduced
Federal aid. Estimated outlays for agricultural research in 1984 are
$0.7 billion, the same as in 1983.
Agricultural services include marketing, animal and plant health
inspection programs, and the collection and distribution of economic data. Most agricultural marketing services are now provided on
a user fee basis. Outlays for agricultural services are estimated to
be $0.8 billion in 1984.
41
COMMERCE AND HOUSING CREDIT
Programs in this function direct commerce and housing credit
resources to those not adequately served by private credit markets;
insure banking and thrift deposits; and provide a subsidy, through
the Postal Service, to certain classes of mail. Outlays for this
function are estimated to be $0.4 billion in 1984.
Mortgage credit and thrift insurance.-The administration believes that the private market can allocate the Nation's credit
resources more effectively and efficiently than the Federal Government. The Government does, however, insure and guarantee home
mortgages for some individuals who are not served by the private
market.
Most credit assistance does not increase budget outlays. For 1984,
the administration has proposed $39.8 billion in loan guarantee
commitments for the Federal Housing Administration to insure
home mortgages. The Government also provides direct loans to
finance housing for the elderly, the handicapped, and residents of
rural areas.
The most pressing need of both t he housing industry and individual homebuyers is the promotion of economic growth with stable
and reasonably low interest rates. Simultaneously, the administration proposes reductions in Federal housing credit programs to
allow the private housing market more opportunity for growth.
Outlays for housing credit activities are expected to be $1.3 billion
in 1984, a decrease of $1.2 billion from 1983.
The Government also provides insurance for depositors' accounts
in banks, credit unions, savings and loan associations, and mutual
savings banks.
OUTLAYS FOR COMMERCE AND HOUSING CREDIT
(In billions of dollars)
Mortgage
credit and
thrift
insurance
1974 ....................................................................... .
1975 ...............................
..................................... .
1976..........................
........................... .
1977 ................................ .................................... .
1978................................................ ..................... .......................... .
1979 ................................................................
.................. .
1980 .................... ................................................................. .
1981 .............................
.............................. .
1982 ................................ ................................................................. .
1983 estimate .....................................................................................
1984 estimate .......................................................................................
1985 estimate.. ...................... ... .................. ....... ... .............................
1986 estimate ........................................................................................
'Includes other advancement of commerce and small amounts of offsefting receipts.
42
-
-
1.5
2.8
1.2
3.3
0.2
0.7
3.7
0.7
1.2
0.6
1.4
4.1
4.5
Postal
Service
1.7
1.9
1.7
2.3
1.8
1.8
1.7
1.3
0.7
0.8
0.4
0.4
0.4
Other '
0.7
0.9
0.9
1.1
1.3
1.5
2.4
2.0
1.9
1.8
1.4
1.4
1.4
Total
3.9
5.6
3.8
0.1
3.3
2.6
7.8
3.9
3.9
1.9
0.4
- 2.3
- 2.8
Other advancement of commerce.-The budget includes proposals
to eliminate nearly all Small Business Administration (SBA) subsidized direct loans-except for minority enterprise small business
investment companies-but to maintain guaranteed loans at the
estimated 1983 level. The SBA guaranteed credit assistance will be
provided with emphasis on minority, handicapped, and first-time
borrowers.
Outlays for this category are expected to be $1.4 billion in 1984,
$0.4 billion less than in 1983.
Postal Service.-The Federal payment to the Postal Service,
which is an independent Federal entity, is estimated to be $0.4
billion in 1984. Direct Postal Service subsidies through 1984 have
been postponed because the administration believes that the cost of
specialized mail service should be paid by users, not by the general
taxpayer. The administration is proposing to reduce subsidies to
preferred-rate mailers, with the exception of the blind and handicapped.
TRANSPORTATION
Federal transportation programs support State and local governments and private enterprise in providing safe, efficient movement
of people and distribution of goods and services. Outlays for transportation are estimated to be $25.1 billion in 1984, $3.3 billion more
than in 1983. The administration's budget stresses that those who
benefit from Federal transportation programs should pay their cost
through user charges.
Highwags.-The Surface Transportation Assistance Act of 1982
provides for completion and rehabilitation of the interstate highway system, for rehabilitation of primary highways and bridges,
and for continued assistance to States for other rural and urban
systems. The user-financed highway trust fund will pay for the
program through a five cent per gallon increase in the motor fuels
tax and revisions to other highway user taxes. Outlays for highways are expected to be $12.0 billion in 1984, a 51% increase from
1982.
Mass transit.-One cent per gallon of the motor fuels tax increase is dedicated to mass transit capital projects; the increase
will be used to supplement funds from State, local, and private
entities, which are primarily responsible for transit systems. Federal grants in 1984 will be mainly for capital assistance.
43
Since Federal operating assistance for mass transit has led to
several undesirable consequences, including the financing of marginal projects, the budget contains a request to phase out operating
subsidies by 1985. Estimated outlays for mass transit in 1984 are
$3.8 billion.
Railroads.-Improved financial prospects for the railroad industry and increased reliance on the private sector permit reductions
in several Federal programs. Conrail, which moves freight in the
Northeast and Midwest, will not need direct Federal subsidies in
1984. To decrease the Federal role where it is not essential, the
administration intends to sell the railroad. The administration also
requests lower subsidies for the National Railroad Passenger Corporation (Amtrak), as passengers and States cover more of Amtrak's operating costs. Total outlays for Federal subsidies and other
railroad programs are estimated to be $1.2 billion in 1984.
Air transportation.-Federal funds for air transportation are
used to operate, maintain, and improve the national airspace
system, and to promote aeronautical research and technology.
44
The administration requests a second year of funding for the
Federal Aviation Administration's capital modernization program.
Outlays for research and development and procurement of new
facilities and equipment would increase from $0.4 billion in 1983 to
$0.7 billion in 1984. Total outlays for air transportation are estimated to be $4.8 billion in 1984.
Water transportation.-The budget includes $3.0 billion in outlays in 1984 to maintain a safe, reliable, and efficient marine
transportation system, and to meet the need for a competitive U.s.
merchant marine.
The budget request for the Coast Guard would improve the efficiency of its operations and equipment by commissioning several
new cutters and adding new search planes and helicopters. The
administration is again proposing that consumers of certain Coast
Guard services pay a user fee to cover some of the costs.
The administration is not requesting subsidies for the construction of new ships for the U.S. merchant marine. Instead, the administration supports the policy that U .S.-flag ship operators be
permitted to build or acquire vessels abroad. For the operating
subsidies program, the budget includes funds to meet the Government's obligation on existing contracts; no new contracts are anticipated.
COMMUNITY AND REGIONAL
DEVELOPMENT
Federal policy for community and regional development is directed toward promoting viable economic and social growth of urban
and rural neighborhoods, communities, and regions. This policy
recognizes that private, State, and local decisions and resources
should have the primary role in community and regional development. Total outlays are estimated to be $7.0 billion in 1984.
Community development.-Community development block grants
and urban development action grants are the major programs in
this category. The administration is again proposing tax benefits
for enterprise zones, increased funding for urban homesteaders,
and a new rural rehabilitation grant program. Total outlays for
community development are estimated to be $4.4 billion in 1984.
Community development block grants help localities undertake
projects that address specific community and economic needs, including housing rehabilitation and public facility improvement. For
1984, the administration has also proposed that communities be
permitted to use these funds to support housing construction. In
45
addition, the administration is proposing a block grant program for
Indian community development and housing. Outlays are expected
to be $3.5 billion in 1984.
Urban development action grants provide distressed localities
with supplemental funding for specific economic development projects. These funds, together with private, State, and local funds,
promote private investment and jobs in selected areas. Outlays for
this program are expected to be $0.5 billion in 1984.
The administration strongly supports the creation of enterprise
zones as an experimental, free-market approach to revitalizing distressed urban areas. The administration will again seek legislation
to reduce tax and regulatory burdens in clearly delineated areas to
stimulate private investment and employment.
Area and regional development.-Grants and loans for rural
water and waste disposal systems are the largest programs in this
category. Total outlays for area and regional development are estimated to be $2.4 billion in 1984, a reduction of $0.4 billion from
1983.
46
The administration believes that the primary responsibility for
economic development should rest with State and local governments and the private sector. Assistance provided by the Economic
Development Administration and the Appalachian Regional Commission is, therefore, proposed for termination. Rural community
and economic development will continue to be promoted through
the use of other block grants, and loans and grants from the
Farmers Home Administration.
Disaster relief and insurance.-The Federal Government provides
disaster relief and insurance to supplement private, State, and
local assistance when necessary. Major programs in this category
include Small Business Administration disaster loans, the Federal
disaster assistance program, and the national flood insurance fund.
Outlays for disaster relief and insurance are estimated to be $0.1
billion in 1984.
EDUCATION
The Federal Government has traditionally played a limited role
in the financial support of education. However, the Government's
actual spending on specific education programs and its prescriptive
regulations increased substantially in the 1960's and 1970's, resulting in a growing and inappropriate influence on parental, State,
and local education decision making. The administration has
moved forcefully to change that trend by simplifying programs,
reducing unnecessary intrusion in local affairs, and reducing the
excessive growth in spending. Outlays are estimated to be $14.4
billion in 1983 and $13.5 billion in 1984, about 10% of all spending
in the United States for education.
Elementary, secondary, and vocational education.-The 1984
budget includes estimated outlays of $6.4 billion to assist States
and localities in providing education to students who have special
needs, such as the educationally disadvantaged and the handicapped. The largest share of these funds goes to States and localities for activities such as special classes in reading and mathematics. Proposed legislation would offer States and localities the option
of using vouchers to allow parents to select schools for their educationally disadvantaged children. Proposed legislation would also
provide funds to States for training additional teachers in science
and mathematics.
Legislation is proposed to provide States and localities more flexibility in the use of funds for vocational and adult education programs.
Higher education.-Estimated outlays for higher education are
$6.7 billion in 1983 and $6.1 billion in 1984. The administration is
47
proposing to restructure student financial aid so that families and
students would be required to contribute part of the cost of education before qualifying for a Federal grant. The work study program
would be expanded substantially to help students meet their contribution requirement through work. The administration is also proposing a tax incentive that encourages people to save for their
children's education. In addition, a major initiative is underway to
increase collection of defaulted student loans.
TRAINING, EMPLOYMENT, AND SOCIAL
SERVICES
A number of programs improve the operation of the labor
market, enhance individuals' long-term employment and earnings
prospects and provide social services to needy individuals. Estimated outlays for these activities in 1984 are $11.8 billion, a reduction
of $0.5 billion from the 1983 estimate.
Training and employment.-Training and employment activities
are financed through such programs as block grants to States,
summer youth employment, assistance to dislocated workers, the
Job Corps, and the Federal-State Employment Service. In the past,
an average of 18% of the grants being replaced by the job training
48
block grant went for training services. Now at least 70% of the
grant amount must be used for training. It is expected that 406,000
years of service will be provided, compared to 303,000 in 1983.
Estimated outlays of $0.6 billion in 1984 will provide approximately 718,000 summer jobs, about the same as in 1983. The Job
Corps residential training program will continue to provide approximately 40,000 years of service in 1984, the same as in 1983.
Outlays are expected to be $0.6 billion in 1984. Estimated outlays of
$0.9 billion in 1984 will maintain the same overall level of employment services as in 1983.
Social services.-The Federal Government provides funds to
States and to local public and private institutions for a variety of
social services. These services are primarily designed to meet the
needs of low-income individuals, children, the--elderly, the disabled,
and other groups with special needs. Estimated outlays for the
social services block grant are $2.5 billion in 1984.
In 1984, estimated outlays for rehabilitation services are $1.0
billion; the administration is proposing substantial management
improvements. Outlays for services to special groups such as the
elderly and children are estimated to be $2.0 billion in 1984. _
Estimated outlays for domestic volunteer programs of $0.1 billion
in 1984 will continue to support the Foster Grandparents, Senior
Companions, and Retired Senior Volunteer programs.
49
HEALTH
The Federal Government contributes to meeting the Nation's
health care needs by seeking to reduce health cost increases, financing health services, promoting preventive measures, and supporting research and training.
Federal outlays for health are estimated to increase from $82.4
billion in 1983 to $90.6 billion in 1984. More than 90% of these
outlays are for financing and providing services to individuals
through medicare and medicaid. The administration is proposing
several major initiatives to limit health cost increases, including
controlling medicare and medicaid costs and reducing tax subsidies
for health insurance.
Medicare finances health care for 30 million aged and disabled
persons. Medicaid finances health services for 23 million needy
individuals. The administration proposes that the present medicare
cost-sharing structure be revised so that all beneficiaries would pay
higher amounts at the beginning of a hospital stay, but would
receive complete protection against catastrophic hospital costs. The
administration is also proposing to raise the voluntary supplementary medical insurance premium the aged pay for additional medical insurance. In addition, medicare reimbursements to hospitals
50
and doctors will be frozen for 1 year, and the increase in payments
to hospitals will be limited. A proposed medicaid reform would
require patients, except those in nursing homes, to make a small
payment for all services.
The other major health proposal would limit tax deductions for
employer-paid health insurance premiums to $175 for a family plan
and $70 for an individual plan. The current tax subsidy artificially
increases the value of this fringe benefit. This, in turn, has stimulated excessive health insurance coverage and contributed to
higher health care costs.
The administration also proposes to reform the Federal employees health benefit program by indexing future government contributions to price increases rather than the costs of the largest, most
comprehensive plans.
The Federal Government finances health block grants, the
Indian Health Service and the National Health Service Corps. In
addition, the Federal Government provides a substantial amount of
the total funds devoted to health research in the Nation; estimated
outlays for research will be $4.3 billion in 1984. Estimated outlays
for health education and training are $0.4 billion in 1984, a $0.2
billion decrease from 1983 because the supply of health care professionals is now adequate. Estimated outlays of $1.1 billion in 1984
will protect consumers from unsafe and defective products, and
workers from occupational hazards.
INCOME SECURITY
Income security benefits are paid to the aged, the disabled, the
unemployed, and low-income families. Outlays for this function are
estimated to be $282.4 billion in 1984, 33% of total Federal budget
outlays.
Social security.-Without changes to current law, social security
would be unable to pay full benefits on a timely basis by July 1983.
However, the bipartisan solution recommended by the National
Commission on Social Security Reform is projected not only to keep
social security solvent in the short term, but also to correct its
long-range actuarial imbalance.
The Commission's recommendations, which the administration
supports, include covering all non-profit and new Federal employees under social security; accelerating already scheduled tax increases; and freezing cost-of-living adjustments for 6 months. The
administration also proposes to extend the freeze to railroad and
Federal employee retirement and disability; food programs; and
supplementary security income. Outlays for social security are expected to be $178.2 billion in 1984.
51
Other retirement and disability.-In 1984, estimated outlays of
$5.8 billion will go to retired and disabled railroad employees, their
dependents, and survivors.
Estimated outlays for the Federal employee retirement system,
one of the most generous in the United States, are $22.6 billion in
1984. Employees now pay only about 20% of the cost. The administration proposes to reform the system by increasing current contributions and reducing future benefits.
Public assistance.-The Federal Government provides assistance
for food, income, and housing to impoverished families and individuals. Food stamps will be distributed to an estimated 21.5 million
individuals in 1984. Estimated outlays for food stamps are $10.9
billion in 1984. This is a decrease of $1.1 billion from 1983 because
of proposals to reduce the program's overpayments and because of
an expected decrease in recipients due to lower unemployment. To
direct the benefits to the neediest individuals, the administration
proposes to require all States to adopt a "community work experience" program in which able-bodied food stamp recipients must
participate in work-related activities.
Outlays for child nutrition and other food programs are estimated to be $4.6 billion in 1984. The administration seeks to consolidate several of the smaller child nutrition programs into a general
nutrition assistance grant to States.
The Federal Government subsidizes housing for low-income families and individuals. Budget authority for these programs is pr oposed to decline from $5.7 billion in 1983 to $0.4 billion in 1984.
Despite this dramatic decline, outlays for all subsidized housing
programs are estima.t ed to increase from $9.6 billion in 1983 to
$10.8 billion in 1984 due to commitments from prior years. The
administration proposes to reform the structure of Federal subsidized housing assistance by enabling low-income households to find
their own rental housing and receive rental subsidy payments. In
addition, a new rural housing block grant is proposed to provide
housing to low-income rural families.
Outlays for the supplemental security income (SS!) program,
which pays benefits to an estimated 4 million needy aged, blind or
disabled individuals are estimated to be $7.8 billion in 1984. Federal outlays for aid to families with dependent children (AFDC) and
child support enforcement (CSE) are estimated to be $8.2 billion in
1983 and $7.5 billion in 1984. A number of reforms in AFDC and
CSE, including community work experience, are proposed. These
changes will ensure that only the people who need the benefits
receive them. Other income security programs include the earned
income tax credit, refugee assistance, and low-income home energy
assistance.
52
Unemployment compensation.-Outlays for unemployment compensation are estimated to decrease from $36.9 billion in 1983 to
$28.8 billion in 1984 as a result of a decline in the projected
average unemployment rate from 10.7% in 1983 to 10.1% in 1984.
The number of weeks an unemployed worker can receive unemployment benefits is extended in any State where the unemployment rate is unusually high. The administration proposes a six
month extension and modification of the Federal Supplemental
Compensation program with an option for recipients to receive
assistance in securing work through a system of tax credits to
employers~
53
VETERANS BENEFITS AND SERVICES
Benefits and services provided to veterans meet the Nation's
obligation to veterans of military service. Outlays for this function
are expected to be $25.7 billion in 1984.
Hospital and medical care.-The Veterans Administration (VA)
operates the largest Federal medical care system. The budget provides funds to maintain, renovate, modernize, and systematically
replace aging VA medical structures; and to provide health care
for the growing number of elderly veterans. Outlays for hospital
and medical care are estimated to rise from $8.3 billion in 1983 to
$8.9 billion in 1984.
Compensation.-Compensation benefits are provided to an estimated 2.6 million veterans with service-connected disabilities and
to their survivors. The administration is proposing a 5.1% cost-ofliving increase in compensation benefits, effective in April 1984.
This reflects a 6-month delay from the past practice of providing
cost-of-living increases effective in October of each year. Outlays
54
for compensation benefits are estimated to increase from $9.7 billion in 1983 to $10.1 billion in 1984.
Pensions.-Pensions are provided to needy veterans with wartime service and to their survivors. Outlays for pension benefits are
estimated to be $3.9 billion in 1983 and 1984. These estimates
reflect a proposal to postpone automatic cost-of-living increases for
6 months beginning in 1983.
Education, training, and rehabilitation.-The GI bill provides
education benefits designed primarily to help veterans adjust to
civilian life. Outlays for these benefits are estimated to decrease
from $1.6 billion in 1983 to $1.3 billion in 1984, reflecting the
decline in the number of eligible veterans.
Other.-The VA provides additional assistance to veterans
through housing loan guarantees. New guaranteed loan commitments are expected to rise from $6.0 billion in 1982 to $18.6 billion
in 1983 and $19.9 billion in 1984, as the housing market recovers
and veterans take advantage of the projected decline in interest
rates. Direct loan programs are available to veterans eligible for
special housing.
ADMINISTRATION OF JUSTICE
Among the most fundamental responsibilities of the Government
are ensuring the safety of the people and resolving disputes peacefully and fairly. Federal activities in this function include law
enforcement, criminal justice assistance to State and local governments, and providing prisons for Federal inmates. Outlays for these
activities are estimated at $5.5 billion in 1984.
Federal law enforcement activities.-More than one-half of outlays for programs in this function are for law enforcement activities. Outlays for this purpose are estimated to be $3.3 billion in
1984.
The organized crime drug enforcement program is a recent administration initiative. A network of 12 regional task forces, together with the South Florida task force, will battle illegal drug
trafficking by organized crime. The administration proposes to
fund automated information systems and additional Federal prison
space to back this effort.
Other programs in this category include the law enforcement
efforts of the Federal Bureau of Investigation and the Drug Enforcement Administration, and border enforcement activities of the
Customs Service and the Immigration and Naturalization Service.
55
Outlays for Administration of Justice
$ Billions
$ Billions
6~--~------~----~----~--~~----r6
5
Criminal Justice
Assistance
Federallitigative and judicial activities.-Another administration
initiative for 1984 is the identification and seizure of the assets and
profits of illegal drug trafficking organizations.
The budget does not include any funds for the Legal Services
Corporation, created to assist State and local agencies that provide
free civil legal assistance to the poor. The administration's social
services block grants are sufficient to fund legal services that
States wish to provide for their citizens.
Federal correctional activities.-The Federal Government is responsible for the care and custody of prisoners charged with or
convicted of violating Federal laws. In response to the growing
Federal prison population, funds for two new prisons and one new
jail are proposed, as well as funds for the renovation and expansion
of existing facilities. Outlays for correctional activities in 1984 are
estimated to be $0.5 billion.
Criminal justice assistance.-The administration is proposing a
new criminal justice assistance program to provide training, technical assistance, and financial assistance to State and local agencies.
56
(itNtKAL (iUVtKNMtN I
This function comprises central government activities for both
the legislative branch and the Executive Office of the President. In
addition, it includes tax collection by the Internal Revenue Service
and the general property and records management activities of the
General Services Administration. Outlays for general government
are estimated to be $6.0 billion in 1984.
$1lI1ions
~--~-----------------------=----~8
7
5
4
3
2
1
GENERAL PURPOSE FISCAL ASSISTANCE
General purpose fiscal assistance provides Federal aid to State
and local governments without major restrictions or matching requirements. This assistance can generally be used for State or local
services, construction, debt retirement, and other purposes of general government. Total outlays for this assistance are estimated to
be $7.0 billion in 1984.
General revenue sharing.-General revenue sharing provides assistance to nearly 39,000 local jurisdictions below the State level.
57
These funds are allocated on the basis of population, per capita
income, and general tax effort. Outlays for the program, which the
administration proposes to renew in 1983, are estimated to remain
at $4.6 billion in both 1983 and 1984. Under the administration's
federalism initiative, general revenue sharing may be combined
with the entitlement portion of the community development block
grant program into one grant to local governments beginning in
1984.
Other general purpose fiscal assistance.-This category includes
payments and loans to the District of Columbia and other general
payments to States, localities, and territories. Some jurisdictions
receive payments from the Federal Government based on receipts
generated from the sale of timber, mineral leases, grazing permits,
and other activities on Federal property. Outlays for other general
purpose fiscal assistance are estimated to increase from $1.8 billion
in 1983 to $2.4 billion in 1984, primarily due to a change in the
schedule of mineral leasing payments to States.
NET INTEREST
This function includes interest paid by the Federal Government,
offset by interest collections from the public and interest received
by Government trust funds. Net interest outlays are very sensitive
58
both to interest rates and to the amount of debt outstanding.
Despite the projected decline in interest rates, net interest outlays
are expected to increase from $88.9 billion in 1983 to $103.2 billion
in 1984 due to higher borrowing required to finance the deficit.
The Federal Reserve System owns Government securities for the
purpose of carrying out monetary policy. Most of the interest it
receives on these securities is paid to the Treasury as budget
receipts. Deducting these receipts from net interest outlays shows
the net effect on the deficit, which is estimated to be $75.5 billion
in 1983 and $90.4 billion in 1984.
NET INTEREST EFFECT ON THE DEFICIT
(In billions of dollars)
1982
aclual
1983
eslimale
1984
estimate
1985
eslimate
1986
eslimate
Interest on the public deb!... ................................................
Interest received by trust funds ...........................................
Other interest .......................................................................
117.2
- 16.1
- 16.4
128.1
-16.3
-22.8
144.5
-16.9
-24.5
164.7
-23.0
-27.5
179.4
-28.1
-28.6
Net interest outlays ............................................
1 ........
84.7
- 15.2
88.9
-13.4
103.2
-12.8
114.2
-13.3
122.7
- 13.6
Net interest effect on the deficit ......................
69.5
75.5
90.4
100.9
109.1
Deposits of earnings by the Federal Reserve System
'Shown as budgel receipls.
59
ALLOWANCES
Allowances cover certain transactions that are expected to occur,
but that are not included in the preceding function estimates. As
these transactions take place, the outlays, savings, or receipts are
classified in the appropriate functions.
Because of the need for budget austerity, the budget anticipates
no civilian agency pay increase for 1984. It does, however, anticipate future pay raises that match those granted to non-Federal
employees.
The administration is proposing to share the cost of civilian
retirement systems equally between Federal employees and employing agencies. Legislation is being proposed to increase both
employee and employer contributions to these funds . An allowance
of $0.9 billion in 1984 covers the full amount of the increased
contribution by employing agencies.
UNDISTRIBUTED OFFSETIING RECEIPTS
Offsetting receipts are generally deducted from agency and function totals, but in three instances they are deducted from the
budget totals as undistributed offsetting receipts. These are estimated to be $20.4 billion in 1983, and $22.8 billion in 1984.
Agency contributions for employee retirement are counted as
agency outlays. In order to measure the Government's transactions
with the public, these payments are deducted as undistributed
offsetting receipts. Totals for this activity are estimated to be $8.2
billion in 1983 and $9.9 billion in 1984. They include the increased
employer contributions to civilian retirement trust funds, under
a new administration proposal.
Payments to the Government for rents and royalties on the
Outer Continental Shelf (OCS) are large, and their inclusion in a
particular function would distort the display of program outlays.
Offsetting collections for OCS are estimated to increase from $11.8
billion in 1983 to $11.9 billion in 1984.
Receipts from disposition of surplus property are expected to be
$0.4 billion in 1983 and $1.0 billion in 1984, of which $0.3 billion
result from the sale of unneeded public lands. The administration
has proposed legislation to use these offsetting collections exclusively to retire public debt.
60
OFF-BUDGET FEDERAL ENTITIES
Some Federal spending is excluded from the budget totals under
provisions of law. The off-budget outlays are added to the budget
deficit to derive the total Federal deficit that must be financed by
borrowing from the public or by other means.
One off-budget Federal entity, the Federal Financing Bank
(FFB), accounts for most off-budget outlays. The FFB's outlays do
not come from programs that the FFB operates itself, but from
loans it makes or purchases at the request of other Federal entities. The outlays of the FFB do not include its purchase of Federal
agency debt securities.
The Postal Service, purchases for the strategic petroleum reserve,
and a few other credit programs are also off-budget. The table below
shows off-budget outlays, classified by function.
DISTRIBUTION Of Off·BUDGET OUTLAYS
(In billions of dollars)
1981
actual
1983
estimate
1984
estimate
1985
estimate
1986
estimate
Federal Financing Bank (FFB) :
International affairs .............................................................. .
2.3
2.8
4.2
3.5
3.4
General science, space and technology .................................
O.l
0.2 - O.l - O.l -O.l
Energy...................................................................................
5.2
5.2
6.l
5.3
4.5
Agriculture ............................................................................
1.1
0.8 - O.l -0.2 -0.2
Commerce and housing credit .............................................. .
2.9
2.9
0.3
0.3
0.3
•
Transportation .......................................................................
•
O.l
*
*
Community and regional development ...................................
1.1
0.8
0.8
0.4
O.l
Education ............................................................................. .
0.7 ......................................................... .
•
Health .................................................................................. .
•
•
•
*
•
•
Income security .....................................................................
•
0.7
0.6
General government ..............................................................1-_.-+__.-+__.- +__
• - t - -.
Subtotal, FFB ......................................................
14.1
14.3
10.2
9.l
8.0
Other off·budget:
Energy:
Rural electrification and telephone revolving fund ........
• ............................................. .............
Strategic petroleum reserve .........................................
3.7
1.8
1.9
1.4
1.4
Synthetic Fuels Corporation ......................................................... ............... .............................. ............ .
Commerce and housing credit:
Postal Service .............................................................. - 0.6
0.9
1.9 - 0.2 -O.l
Transportation:
• -O.l
U.S. Railway Association ............................................. .
•
Community and regional development:
Rural telephone bank ................................................. ..
O.l
O.l
O.l
O.l
O.l
r---+--+---+--+--Total off-budget outlays ................................ 17.3
17.0
14.0
10.5
9.4
"S50 million or less.
61
TAX EXPENDITURES
The Congressional Budget Act of 1974 requires a listing of tax
expenditures in the budget.
Tax expenditures are features of the individual and corporation
income tax laws that provide special benefits or incentives in comparison with what would be permitted under the general provisions
of the Internal Revenue Code. They arise from special exclusions,
exemptions, or deductions from gross income, or from special credits, preferential tax rates, or deferrals of tax liability.
Tax expenditures reduce tax liabilities for particular groups of
taxpayers to encourage certain economic activities or in recognition
of special circumstances. They can be viewed as alternatives to
other means by which the Federal Government carries out policy
objectives, such as direct outlays, loan guarantees, regulation, and
other tax law provisions.
Tax expenditures affect individual and corporate taxes in important ways. For example, homeowners may take a tax deduction for
the interest charged on their mortgage. This provision is estimated
to result in a tax expenditure of $28.3 billion in 1984. Businesses
may deduct, as a credit, part of the cost of equipment that is
purchased for use in business. This provision of the tax laws, which
provides incentive for business investment, is expected to result in
a tax expenditure of $18.3 billion in 1984. The table below displays
estimates of tax expenditures, classified by function.
TAX EXPENDITURES ESTIMATED AS OUTLAY EQUIVALENTS
(In billions of dollars)
Function
National defense ............................................................................................................ .
International affairs ....................................................................................................... .
General science, space, and technology ........................................................................ .
Energy ........................................................................................................................... .
Natural resources and environment ................................................................................
Agriculture .................................................................................................................... .
Commerce and housing credit ....................................................................................... .
Transportation ............................................................................................................... .
Community and regional development ........................................................................... .
Education, training, employment, and social services.....................................................
Health ............................................................................................................................
Income security ............................................................................................................. .
Veterans benefits and services ...................................................................................... .
General government ...................................................................................................... .
General purpose fiscal assistance .................................................................................. .
Net interest ....................................................................................................................
'$50 million or less.
62
1981
1983
1984
3.1
4.7
0.8
6.2
2.3
l.4
11l.9
2.9
4.7
-0.1
4.5
2.8
l.4
108.3
3.0
4.2
0.1
4.2
3.3
l.4
115.6
0.1
0.5
15.9
34.3
123.3
2.3
0.3
33.3
0.5
*
0.3
15.4
28.8
107.1
2.4
0.2
28.9
0.3
*
0.4
15.1
· 30.8
113.2
2.3
0.2
30.7
0.5
Part IV
THE BUDGET PROCESS
Both through taxing and spending, the Federal Government allocates resources between the private and public sectors of the economy. Within the public sector, the allocation of budget resources
among individual programs reflects the national priorities determined by the executive branch and the Congress.
Executive formulation and transmittal.-The budget sets forth
the President's financial plan of operation for the Federal Government. The President's transmittal of budget proposals to the Congress is the result of many months of planning and analysis
throughout the executive branch. Formulation of the 1984 budget
began in the spring of 1982.
Each spring, policy issues are identified, budget projections are
made, and preliminary program plans are presented to the President. The President reviews the budget projections in light of the
economic outlook, and establishes general budget and fiscal policy
guidelines for the fiscal year that begins more than a year later.
Under the multiyear budget planning system, the President's
guidelines also cover the 4 fiscal years beyond the budget year.
Tentative policy decisions for the budget year and planning ceilings
for the following 4 years are then given to the agencies as guidelines for preparing their budgets.
In the summer, agencies and departments prepare their budget
requests, which are reviewed in detail in the fall by the Office of
Management and Budget and presented to the President. The
budget sent to the Congress at the beginning of each calendar year
reflects the President's recommendations for existing and proposed
programs, as well as total outlay and receipt levels appropriate to
the state of the economy.
By law, the President must update this budget on or before April
10 and again by July 15, taking into account newly enacted legislation, the administration's latest economic assumptions, and any
new recommendations and revised estimates.
The law also requires the President to transmit current services
estimates annually. These estimates represent the budget authority
and outlays required to continue Federal programs in subsequent
fiscal years without any policy changes, thereby providing a base
63
with which to compare program initiatives. Current services estimates for 1984 and the following 4 years accompany this budget.
Congressional action.-Before passing appropriations for a specific program, the Congress enacts legislation to authorize the program and provide guidance on funding levels. Many programs,
such as social security and interest on the public debt, are authorized indefinitely or for several years. Programs such as space exploration, nuclear energy, defense procurement, foreign affairs, and
some construction projects require annual authorizing legislation.
Budget authority is usually provided separately after the program authorizing legislation has been enacted. 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 established by the Congressional Budget Act of
1974, the Congress considers budget totals prior to beginning action
on individual appropriation bills. The act requires that congressional committees send reports on budget estimates to the House
and Senate Budget Committees by March 15. The budget committees are to report out a budget resolution by April 15.
64
The Congress is scheduled to adopt by May 15 the first budget
resolution, which sets overall targets for receipts, outlays and
budget authority. After action has been completed on all or most
money bills, the Congress adopts a second budget resolution, which
sets a ceiling on total budget authority and outlays and a floor for
receipts. The first or second budget resolution can contain a "reconciliation" directive calling on various committees to cut spending
or increase receipts by specified amounts. For the past 3 years, the
Congress has enacted omnibus reconciliation legislation that reduced budget authority and outlays or increased revenues in response to a directive in the concurrent budget resolution.
Congressional consideration of requests for appropriations and
for changes in revenue laws are considered first in the House of
Representatives, where the Ways and Means Committee reviews
proposed revenue measures and the Appropriations Committee
studies the proposed appropriations. These committees then recommend the action to be taken by the House of Representatives. After
the appropriation 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 the Congress, a
conference committee (consisting of Members of both bodies) resolves the issues and submits a report to both Houses for approval.
After approval, measures are transmitted to the President for
' approval or veto. When appropriations are not enacted by the
beginning of the fiscal year, the Congress enacts a "continuing
resolution" to provide authority so that the affected agencies may
continue operations until a specific date or until their regular
appropriations are approved.
Budget execution and control.-Once approved, the budget becomes the basis for the financial plan for the operation of agencies
during the fiscal year. Most budget authority and other budgetary
resources are made available by the Office of Management and
Budget under an apportionment system designed to assure the
effective and orderly use of available authority.
Amounts may be withheld for policy or other reasons. However,
the Impoundment Control Act of 1974 provides that the executive
branch, in regulating the rate of spending, must report to the
Congress any 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
approved by the full Congress. Otherwise, the withheld funds must
be made available for spending.
65
Relation of Budget Authority to Outlays
Not all of the new budget authority for 1984 will be obligated or
spent in that year.
• Budget authority for most major trust funds arises from their
receipts and is used over time as needed for purposes specified
by law.
• Budget authority for most major construction and procurement programs covers the estimated full cost of projects at
the time they are started.
• Budget authority for many loan and guarantee (or insurance)
programs provides financing for a period of years or constitutes a contingency backup that may never result in outlays.
As a result of these factors, a large amount of budget authority
carries over from one year to the next. Most is earmarked for
specific uses and is not available for any other program.
New Authority
Recommended
for 1984
900.1
t
66
Unspent Authority
Enacted in
Prior Years
881.3
Outlays
in 1984
848.5
..
.,
To be spent in
Future Years
746.3
..
.,
Unspent Authority
for Outlays in
Future Years
921.6
Part V
BUDGET TABLES
Page
1. Budget Receipts, Outlays, and Debt, 1974-86 .......................
2. Composition of Budget Outlays in Current and Constant
(Fiscal Year 1972) Prices, 1963-86...................... ..................
3. Budget Receipts by Source and Outlays by Function,
1974-84.......................................................................................
4. Budget Outlays by Function and Subfunction, 1974-86......
5. Budget Outlays by Agency, 1982-88 .......................................
6. New Direct Loan Obligations by Agency, 1982-84 ...............
7. New Guaranteed Loan Commitments by Agency, 1982- 84
8. Federal Finances and the Gross National Product,
1965-86.......................................................................................
9. Full-Time Equivalent of Total Federal Civilian Employment in the Executive Branch, 1982-85..............................
10. Budget Receipts and Outlays, 1789-1986 .. .............................
68
69
70
72
79
80
81
82
83
84
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 published in Part 9 of
the Budget of the United States Government, 1984.
67
Table 1. BUDGET RECEIPTS, OUTLAYS, AND DEBT, 1974--86
(In billions 01 dollars)
Actual
OeSCIiption
Recetets:
Fe era I funds .................................
Trust funds ....................................
Interfund transactions ....................
Total budget receipts ........
Outlays:
Federal funds .................................
Trust funds ....................................
Interfund transactions ....................
Total budget outlays .........
Outlays, off·budget Federal
entities ..... ........................
Outlays including offbudge!. .............................
Surplus or deficit (- ):
Federal funds .................................
Trust funds ....................................
Budget surplus or deficit
( - ) ................................
Deficit ( - ), off-budget
Federal entities.................
Surplus or deficit (-) in·
cluding off·budget ............
Eslimale
TQ'
1977
1978
1979
1980
1981
1981
1983
1984
1985
1986
201.1
131.8
-34.8
298.1
54.1
31.5
- 4.4
81.2
241.3
150.6
- 36.3
355.6
270.5
165.6
- 36.5
399.6
316.4
187.0
- 40.1
463.3
350.9
210.9
- 44.7
517.1
410.4
239.4
-50.6
599.3
409.3
268.4
-59.9
617.8
376.9
314.8
- 94.2
597.5
404.7
330.2
-75.3
659.7
436.7
369.2
- 81.6
724.3
525.9
404.7
- 88.7
841.9
240.1
109.3
- 25.1
324.2
269.9
129.3
- 34.8
364.5
65.1
33.5
- 4.4
94.2
295.8
141.1
- 36.3
400.5
332.0
152.9
-36.5
448.4
362.4
168.7
-40.1
491.0
419.2
202.1
- 44.7
576.7
475.2
232.6
- 50.6
657.2
526.1
262.2
- 59.9
728.4
603.0
296.4
-94.2
805.2
610.5
313.3
-75.3
848.5
666.2
333.9
- 81.6
918.5
719.3
359.0
- 88.7
989.6
(8.1)
(1.3)
(l.8)
(87)
(104)
(12 5)
(14.2)
(21.0)
(11.3)
(11. 0)
(14.0)
(10.5)
(9.4)
(269.4)
(3323) (371.8)
(96.0)
(4092)
(4587) (5035)
(5909)
(678.2)
(745.7)
(8222)
(8625)
(929.0)
(999.0)
- 18.7
14.0
-52.6
7.4
- 68.8
2.4
-11.0
-2.0
- 54.4
9.5
-61.5
12.7
-46.0
18.3
- 68.4
8.8
- 64.7
6.8
- 116.9
6.3
- 226.1
18.4
- 205.7
16.9
- 229.5
35.3
-193.4
45.7
-4.7
-45.2
-66.4
-13.0
-44.9
-48.8
- 27.7
- 59.6
- 57.9
-110.6
- 207.7
-188.8
- 194.2
-147.7
1974
1975
181.2
103.1
-21.1
263.2
187.5
116.7
-25.1
279.1
199.9
89.1
- 21.1
267.9
(1.4)
1976
(-1.4) (-81) (-1.3) ( -1.8) ( - 8.7) ( - 104) (- 12 5) (-14.2) (-21.0) (-11.3) (-11.0) (-14.0) (-10.5)
(-6.1) (-53.2) (-737) ( -14.7) (-53.6) ( - 592) (-402) (-73.8) ( -789) ( - 121.9) ( - 224.8) ( - 2028) (-204.7) (-151.1)
Debt outstanding, end of year:
Gross Federal debt... ...................... 486.2
Held by the public ......................... 346.1
544.1
396.9
631.9
480.3
646.4
498.3
709.1
551.8
780.4
610.9
833.8
644.6
914.3
715.1
1,003.9
794.4
1,147.0
929.4
1,383.7
1,144.4
'In calendar year 1976, the Federal fiscal year was converted from a July I- June 30 baSIS 10 an Oct I - Sept 30 baSIS. The TQ refers to the transition quarter from July I to Sept 30, 1976.
(- 9.4)
1,606.3
1,347.4
1,845.5
1,551.3
2,047.4
1,707.5
Table 2. COMPOSITION OF BUDGET OUTLAYS IN CURRENT AND CONSTANT (FISCAL YEAR 1972) PRICES,
19~6
(In billions of dollars)
Current prices
fiscal year
1963 ............................................................
1964 ............................................................
1965 ............................................................
1966 ............................................................
1967 ............................................................
1968 ............................................................
1969 ............................................................
1970 ............................................................
1971 ............................................................
1972 ............................................................
1973 ............................................................
1974 ............................................................
1975 ............................................................
1976 ............................................................
1977 ............................................................
1978 ............................................................
1979 ...................................... ......................
1980 ............................................................
1981 ............................................................
1982 ............................................................
1983 estimate ..............................................
1984 estimate ..............................................
1985 estimate ..............................................
1986 estimate ..............................................
Constant (fiscal year 1971) prices
Nondefense
Total outlays
111.3
118.6
118.4
134.7
157.6
178.1
183.6
195.7
210.2
230.7
245.6
267.9
324.2
364.5
400.5
448.4
491.0
576.7
657.2
728.4
805.2
848.5
918.5
989.6
National
defense
50.1
51.5
47.5
54.9
68.2
78.8
79.4
78.6
75.8
76.6
74.5
77.8
85.6
89.4
97.5
105.2
117.7
135.9
159.8
187.4
214.8
245.3
285.3
323.0
'Total non·
defense
61.2
67.1
71.0
79.8
89.4
99.4
104.2
117.1
134.4
154.1
171.1
190.1
238.7
275.0
303.0
343.2
373.3
440.8
497.4
541.0
590.4
603.2
633.2
666.5
Payments for
individuals
30.4
31.6
32.3
36.2
43.1
48.7
55.3
63.2
78.7
90.8
102.1
117.5
150.4
176.6
192.4
206.5
227.5
271.1
316.6
348.6
391.9
401.0
425.5
453.6
Total outlays
Net interest
7.7
8.2
8.6
9.4
10.3
11.1
12.7
14.4
14.8
15.5
17.3
21.4
23.2
26.7
29.9
35.4
42.6
62.5
68.7
84.7
88.9
103.2
114.2
122.7
All other
23.1
27.3
30.1
34.2
36.0
39.6
36.3
39.6
40.9
47.9
51.6
51.2
65.1
71.7
80.8
101.3
103.2
117.2
112.1
107.7
109.6
99.0
93.6
90.3
162.8
170.3
166.9
183.0
207.5
224.6
220.2
220.2
222.6
230.7
233.3
236.9
260.2
274.3
280.6
293.8
297.2
316.7
327.5
338.7
356.6
357.5
367.6
377.3
National
defense
75.4
76.1
68.9
76.3
92.0
101.2
97.4
90.1
81.4
76.6
70.0
68.4
68.7
67.1
67.8
68.0
70.6
72.7
76.4
81.7
88.8
97.7
107.7
116.1
Nondefense
Total non·
defense
87.4
94.2
98.0
106.7
115.5
123.4
122.9
130.1
141.2
154.1
163.3
168.5
191.5
207.2
212.9
225.8
226.6
244.1
251.1
257.0
267.8
259.9
259.9
261.2
Payments for
individuals
40.2
41.1
41.5
45.5
52.6
57.7
62.8
68.6
81.8
90.8
98.1
104.4
121.8
134.9
137.6
138.7
140.7
152.4
162.9
168.3
180.2
175.1
177.1
180.3
Net interest
10.6
11.1
11.4
12.2
12.9
13.5
14.7
15.8
15.5
15.5
16.6
19.1
18.8
20.3
21.2
23.6
26.1
29.5
35.2
40.5
40.5
44.6
47.1
48.3
All other
36.6
41.9
45.1
49.0
49.9
52.2
45.3
45.8
43.9
47.9
48.6
45.1
50.8
52.1
54.1
63.5
59.8
62.2
53.1
48.2
47.0
40.1
35.8
32.6
-.::J
0
Table 3. BUDGET RECEIPTS BY SOURCE AND OUTLAYS BY FUNCTION, 1974-84
(In billions of dollars)
Actual
Description
1974
1975
1976
Individual income taxes ........................................................
Corporation income taxes .....................................................
119.0
38.6
122.4
40.6
131.6
41.4
Social insurance taxes and contributions:
Employment taxes and contributions ................................
Unemployment insurance .................................................
Other retirement contributions .........................................
65.9
6.8
2.3
75.2
6.8
2.6
Total social insurance taxes and contributions ........
75.1
84.5
Estimate
1977
1978
1979
1980
1981
1982
1983
1984
38.8
8.5
157.6
54.9
181.0
60.0
217.8
65.7
244.1
64.6
285.9
61.1
297.7
49.2
285.2
35.3
295.6
51.8
79.9
8.1
2.8
21.8
2.7
0.7
92.2
11.3
3.0
103.9
13.8
3.2
120.1
15.4
3.5
138.7
15.3
3.7
163.0
15.8
4.0
180.7
16.6
4.2
186.4
19.5
4.4
213.3
24.1
5.5
90.8
25.2
106.5
121.0
138.9
157.8
182.7
201.5
210.3
242.9
Excise taxes:
Alcohol .............................................................................
5.2
5.3
1.3
5.3
5.5
5.5
5.2
2.3
Tobacco ...........................................................................
2.5
0.6
2.4
2.4
2.5
2.4
Highway ..........................................................................
6.2
5.4
6.7
6.9
7.2
6.3
1.7
Airport and airway ...........................................................
0.9
0.8
1.0
1.2
1.3
1.5
0.3
Windfall profit tax ........................................................... ................. ................. ..... ............ ................. ................. ................. .................
Other ...............................................................................
2.1
1.8
2.8
0.6
2.0
2.2
2.0
5.6
2.4
6.6
1.9
6.2
1.5
5.6
2.6
6.3
23.2
3.1
5.4
2.5
6.7
0.1
18.9
2.6
5.6
4.4
8.5
2.3
14.3
2.2
5.7
5.1
11.4
2.6
12.3
3.2
TQ '
RECEIPTS BY SOURCE
*
Total excise taxes ...................................................
16.8
16.6
17.0
4.5
17.5
18.4
18.7
24.3
40.8
36.3
37.3
40.4
Estate and gift taxes... .........................................................
Customs duties .....................................................................
Miscellaneous receipts ..........................................................
5.0
3.3
5.4
4.6
3.7
6.7
5.2
4.1
8.0
1.5
1.2
1.6
7.3
5.2
6.5
5.3
6.6
7.4
5.4
7.4
9.3
6.4
7.2
12.7
6.8
8.1
13.8
8.0
8.9
16.2
6.1
8.8
14.5
5.9
9.1
14.0
Total budget receipts ..........................................
263.2
279.1
298.1
81.2
355.6
399.6
463.3
517.1
599.3
617.8
597.5
659.7
OUTLAYS BY FUNCTION
National defense ...................................................................
International affairs..............................................................
General science, space, and technology ................................
Energy ..................................................................................
Natural resources and environment ......................................
Agriculture ...........................................................................
Commerce and housing credit ..............................................
Transportation ......................................................................
Community and regional development ..................................
Education, training, employment, and social services...........
Health ..................................................................................
77.8
5.7
4.0
0.8
5.7
2.2
3.9
9.2
4.1
12.3
20.4
85.6
6.9
4.0
2.2
7.3
1.7
5.6
10.4
3.7
15.9
25.7
89.4
5.6
4.4
3.1
8.1
2.5
3.8
13.4
4.8
18.7
31.5
22.3
2.2
1.2
0.8
2.5
0.6
1.4
3.3
1.3
5.2
8.2
97.5
4.8
4.7
4.2
10.0
5.5
0.1
14.6
6.3
21.0
36.6
105.2
5.9
4.7
5.9
10.9
7.7
3.3
15.4
11.1
26.5
41.2
117.7
6.1
5.0
6.9
12.1
6.2
2.6
17.5
9.5
29.7
47.0
135.9
10.7
5.7
6.3
13.8
4.8
7.8
21.1
10.1
30.8
55.2
159.8
11.1
6.4
10.3
13.5
5.6
3.9
23.4
9.4
31.4
66.0
187.4
10.0
7.1
4.7
12.9
14.9
3.9
20.6
7.2
26.3
74.0
214.8
11.9
7.8
4.5
12.1
21.1
1.9
21.9
7.4
26.7
82.4
245.3
13.2
8.2
3.3
9.8
12.1
0.4
25.1
7.0
25.3
90.6
Income security:
Social security .................................................................
Other ...............................................................................
54.9
29.5
63.6
44.9
72.7
54.7
19.8
13.0
83.9
54.0
92.2
54.0
102.6
57.6
117.1
76.0
138.0
87.1
154.1
94.2
168.3
114.2
178.2
104.2
Total income security ..............................................
84.4
108.6
127.4
32.8
137.9
146.2
160.2
193.1
225.1
248.3
282.5
282.4
Veterans benefits and services .............................................
13.4
18.4
4.0
16.6
18.0
19.0
19.9
21.2
23.0
24.0
24.4
Administration of justice ......................................................
2.5
2.9
3.3
.9
3.6
4.6
4.7
4.2
3.8
4.7
5.3
General government .............................................................
3.2
3.1
2.9
.9
3.2
3.7
4.1
4.5
4.6
4.7
5.8
General purpose fiscal assistance .........................................
6.9
7.2
7.2
2.1
9.5
9.6
8.4
8.6
6.9
6.4
6.4
Net interest ..........................................................................
21.4
23.2
26.7
6.9
29.9
35.4
42.6
52.5
68.7
84.7
88.9
Allowances .............................................................................................................................. ................. ...................................................................................................... ...... ...........
Undistributed offsetting receipts ........................................... -10.1
-6.4
-6.9
- 2.3
-6.9
- 7.2
- 8.5
- 9.9 - 16.5 -13.3 -20.4
25.7
5.5
6.0
7.0
103.2
0.9
- 22.8
Total budget outlays ...........................................
267.9
324.2
364.5
94.2
400.5
448.4
491.0
576.7
657.2
"$50 million or less.
'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 I to Sept. 30, 1976.
728.4
805.2
848.5
Table 4. BUDGET OUTLAYS BY FUNCTION AND SUBFUNCTION, 1974-86
(In billions 01 dollars)
Aclual
Function and subfunction
1975
1974
National defense:
Department of Defense-Military:
Military personnel ................................................
Retired military personnel.. ..................................
Operation and maintenance .................................
Procurement ........................................................
Research and development.. ................................
Military construction and other ...........................
1976
1977
TQ '
Eslimale
1978
1979
1980
1981
1982
1984
1983
1985
1986
23.7
5.1
22.5
15.2
8.6
2.4
25.0
6.2
26.3
16.0
8.9
2.5
25.1
7.3
27.8
16.0
8.9
2.8
6.4
1.9
7.2
3.8
2.2
0.4
25.7
8.2
30.6
18.2
9.8
3.1
27.1
9.2
33.6
20.0
10.5
2.7
28.4
10.3
36.4
25.4
11.2
3.3
30.8
11.9
44.8
29.0
13.1
3.2
36.4
13.7
51.9
35.2
15.3
3.6
42.3
14.9
59.7
43.3
17.7
4.9
45.3
16.1
64.6
55.2
21.4
6.2
47.7
16.8
71.6
68.2
26.3
7.9
49.5
17.4
79.1
85.9
30.0
15.6
51.0
18.4
87.3
103.7
32.6
22.0
Subtotal, Department of Defense- Military ....
Atomic energy defense activities..............................
Defense-related activities.........................................
Deductions for offsetting receipts............................
77.6
1.5
- 1.2
84.9
1.5
- 0.8
87.9
1.6
21.9
0.4
95.6
1.9
-
115.0
2.5
0.1
•
182.9
4.3
0.3
208.9
5.5
0.4
238.6
6.4
0.3
277.5
7.4
0.3
314.9
7.7
0.4
-
132.8
2.9
0.1
- •
156.1
3.4
0.3
-
-
103.0
2.1
0.1
Total national defense .................................
77.8
85.6
89.4
22.3
97.5
105.2
117.7
135.9
159.8
187.4
214.8
245.3
285.3
323.0
International affairs:
Foreign economic and financial assistance ...............
International security assistance ..............................
Conduct of foreign affairs ........................................
Foreign information and exchange activities............
International financial programs ...............................
Deductions for offsetting receipts ............................
2.5
1.8
0.6
0.3
0.5
-0.1
3.2
2.4
0.7
0.3
0.4
-0.1
2.7
1.8
0.7
0.4
1.1
1.2
0.3
0.1
-0.5
- 0.1
•
2.8
1.6
1.0
0.4
- 0.9
- 0.1
2.7
2.4
1.1
0.4
-0.6
- 0.1
3.0
2.3
1.3
0.5
- 0.9
-0.1
3.7
2.8
1.4
0.5
2.4
-0.1
4.2
3.1
1.3
0.5
2.0
-0.1
3.9
3.1
1.6
0.6
0.9
-0.1
4.3
4.0
1.7
0.7
1.3
- 0.1
4.5
4.6
2.0
0.8
1.4
- 0.1
4.4
4.8
2.2
0.9
0.8
- 0.1
4.2
4.9
2.3
1.1
0.6
- 0.1
Total international affairs ...........................
5.7
6.9
5.6
2.2
4.8
5.9
6.1
10.7
11.1
10.0
11.9
13.2
13.0
12.9
•
•
•
•
•
-
•
•
-
•
•
-
•
-
-
•
-
•
-
•
-
•
-
•
-
•
General science, space, and technology:
General science and basic\ research ....................... ..
Space flight .............................................................
Space science, applications, and technology ......... ."
Supporting space activities ......................................
Deductions for offsetting receipts ......................... ...
*
1.0
1.7
1.0
0.3
- *
1.0
2.0
1.0
0.4
- *
4.0
4.0
4.4
1.2
4.7
1.7
0.6
0.4
- *
2.5
0.1
0.1
0.6
-0.1
0.8
2.2
Water resources .......................................................
Conservation and land management .............•........ ..
Recreational resources .............................................
Pollution control and abatement ........................... ...
Other natural resources ...........................................
Deductions for offsetting receipts ............................
2.2
0.7
0.7
2.0
0.7
-0.7
Total natural resources and environment ...................................................... .
5.7
Total general science, space, and technology .................................................... ...
1.0
1.7
0.9
0.3
-
0.3
0.5
0.3
0.1
1.1
2.3
1.0
0.3
1.2
2.3
1.0
0.4
*
1.4
2.6
1.3
0.4
- *
-
*
1.6
3.5
1.5
0.5
- *
4.7
5.0
5.7
6.4
7.1
7.8
*
3.3
0.1
0.1
0.7
- *
4.0
0.2
0.9
0.8
- *
4.9
0.3
1.0
0.7
-0.1
4.6
0.6
0.3
0.9
-0.1
5.4
0.8
3.3
1.0
-0.1
3.2
0.5
0.2
0.9
-0.1
3.1
0.8
4.2
5.9
6.9
6.3
10.3
2.6
1.3
0.8
2.5
0.8
-0.7
2.8
1.2
0.9
3.1
0.9
-0.8
0.8
0.5
0.3
1.1
0.2
-0.3
3.2
1.3
1.0
4.3
1.0
-0.8
3.5
2.0
1.4
4.0
1.2
-1.1
3.9
1.9
1.5
4.7
1.3
-1.2
4.3
2.3
1.7
5.5
1.4
-1.4
7.3
8.1
2.5
10.0
10.9
12.1
13.8
-
*
-
*
-
*
1.3
2.2
1.2
0.4
-
1.5
3.1
1.4
0.4
1.6
4.0
1.5
0.6
1.9
4.0
1.6
0.8
*
2.1
3.2
1.8
0.8
- *
8.2
8.4
7.9
2.8
0.7
0.3
0.9
-0.1
2.1
0.3
0.2
0.7
-0.1
1.7
0.1
0.2
0.7
-0.1
2.0
0.1
0.1
0.7
-0.1
4.7
4.5
3.3
2.7
2.8
4.2
2.6
1.6
5.2
1.5
-1.6
4.0
2.7
1.5
5.0
1.5
-1.9
4.0
2.7
1.7
4.3
1.6
-2.1
3.3
2.2
1.5
4.1
1.4
-2.6
3.5
2.1
1.4
4.0
1.4
-3.1
3.6
2.1
1.3
3.8
1.4
-3.5
13.5
12.9
12.1
9.8
9.3
8.7
-
*
-
*
2.1
3.8
1.8
0.8
-
Energy:
Energy supply ..........................................................
0.5
Energy conservation .................................................
*
Emergency energy preparedness ........................... ... ...............
.Energy information, policy, and regulation ...............
0.3
Deductions for offsetting receipts ......................... ...
- *
Total energy .............................................. ...
*
*
*
*
0.1
-
Natural resources and environment:
"
Table 4. BUDGET OUTLAYS BY FUNCTION AND SUBFUNCTION,
197~6-Continued
(In billions of dollars)
Actual
Function and subfunction
1974
Agriculture:
Farm income stabilization ........................................
Agricultural research and services ...........................
Deductions for offsetting receipts ............................
1975
l.5
0.8
-
*
TQ
1976
1977
I
0.8
0.9
l.6
0.9
0.3
0.2
*
*
*
-
Estimate
1978
1979
1980
4.5
1.1
6.6
1.1
4.8
1.3
*
*
-
1981
1982
4.0
l.5
*
3.5
l.4
- O.l
*
1983
13.3
l.6
-
1984
10.5
1.7
*
19.4
1.7
- *
-
1986
1985
*
9.l
l.6
-
*
7.9
l.6
-
*
Total agriculture ..........................................
2.2
1.7
2.5
0.6
5.5
7.7
6.2
4.8
5.6
14.9
21.1
12.1
10.7
9.5
Commerce and housing credit:
Mortgage credit and thrift insurance .......................
Postal Service ..........................................................
Other advancement of commerce .............................
Deductions for offsetting receipts............................
l.5
1.7
0.7
2.8
l.9
0.9
l.2
1.7
0.9
0.3
0.9
0.2
0.2
l.8
1.3
- 0.7
1.8
1.5
3.7
1.7
2.4
0.7
-4.5
0.4
l.4
*
*
*
-l.4
0.4
l.4
.- *
- 4.l
0.4
l.4
*
l.2
0.7
l.9
- *
- 0.6
0.8
l.8
*
- 3.3
2.3
1.1
- *
-
*
-
*
-
*
-
-
-
*
1.3
2.0
-
-
-
•
-
*
Total commerce and housing credit... .......
3.9
5.6
3.8
1.4
0.1
3.3
2.6
7.8
3.9
3.9
1.9
0.4
- 2.3
- 2.8
Transportation:
Ground transportation ..............................................
Air transportation .....................................................
Water transportation ................................................
Other transportation .................................................
Deductions for offsetting receipts ............................
5.6
2.2
l.4
O.l
- O.l
6.5
2.4
l.5
O.l
- O.l
9.3
2.6
l.6
O.l
2.3
0.6
0.4
*
- *
10.0
2.8
1.7
O.l
- *
10.4
3.3
l.9
O.l
- O.l
12.l
3.4
2.0
O.l
- O.l
15.l
3.8
2.2
O.l
-O.l
17.l
3.8
2.4
O.l
- O.l
14.3
3.6
2.7
O.l
- O.l
14.6
4.2
3.l
O.l
- O.l
17.2
4.8
3.0
O.l
- O.l
17.9
5.2
3.l
0.2
- O.l
18.2
5.4
3.2
0.2
- O.l
Total transportation ....................................
9.2
10.4
13.4
3.3
14.6
15.4
17.5
21.1
23.4
20.6
21.9
25.1
26.2
27.0
-
*
Community and regional development:
Community development .........................................
Area and regional development... ........................... .
Disaster relief and insurance ................................. .
Deductions for offsetting receipts .......................... .
Total community and regional development ....................................................... .
Education, training, employment, and social
services:
Elementary, secondary, and vocational education ... .
Higher education .................................................... .
Research and general education aids .................... ..
Training and employment.. ..................................... .
Other labor services ............................................... .
Social services ....................................................... .
Ded~ctions for offsetting receipts .......................... .
Total education, training, employment,
and social services ............................... ..
2.l
1.3
0.8
-
*
2.3
1.1
0.4
*
-
2.8
1.5
0.5
-
*
0.9
0.4
O.l
-
*
3.4
2.3
0.6
- *
3.3
4.9
2.9
-
*
4.0
4.0
1.6
-
*
4.9
3.2
2.0
-
*
5.l
2.7
1.6
-
*
4.6
2.7
-O.l
-
*
4.4
2.4
O.l
4.5
2.8
O.l
-
*
*
-
4.3
2.4
0.3
-
*
4.3
2.2
0.2
-
*
4.1
3.7
4.8
1.3
6.3
11.1
9.5
10.1
9.4
7.2
7.4
7.0
7.0
6.8
3.3
1.3
0.9
2.9
0.2
3.7
4.2
2.0
0.9
4.l
0.3
4.4
4.2
2.7
0.8
6.3
0.3
4.5
1.1
0.7
0.2
1.9
O.l
1.2
4.6
3.l
0.9
6.9
0.4
5.l
5.l
3.5
1.1
10.8
0.4
5.6
6.0
4.5
1.2
10.8
0.5
6.6
6.7
5.7
1.4
10.3
0.6
6.l
7.0
6.8
1.2
9.2
0.6
6.5
6.8
6.5
1.0
5.5
0.6
6.0
6.5
6.7
1.1
5.2
0.6
6.5
*
6.4
6.l
1.0
4.7
0.7
6.4
- O.l
6.l
6.3
0.9
4.6
0.7
6.6
- O.l
6.0
6.0
0.8
4.6
0.7
6.7
-O.l
-
*
-
*
-
*
-
*
-
*
-
*
-
*
-
*
-
*
-
*
-
12.3
15.9
18.7
5.2
21.0
26.5
29.7
30.8
31.4
26.3
26.7
25.3
25.1
24.8
Health:
Health care services ............................................. ..
Health research .................................................... ..
Education and training of health care work force .. .
Consumer and occupational health and safety ...... ..
Deductions for offsetting receipts .......................... .
17.3
1.7
0.8
0.5
27.5
2.3
1.0
0.7
7.2
0.5
0.3
0.2
60.4
3.8
0.8
1.0
68.4
3.9
0.7
1.0
76.5
4.2
0.6
1.1
84.9
4.3
0.4
1.1
94.7
4.3
0.4
1.1
103.8
4.3
0.4
1.1
*
42.5
3.0
0.6
0.9
- *
50.l
3.4
0.7
1.0
*
32.3
2.5
1.0
0.7
- *
36.7
2.8
0.9
0.8
*
22.3
1.9
0.9
0.6
- *
*
*
Total health ................................................ .
20.4
25.7
31.5
8.2
36.6
41.2
47.0
55.2
66.0
74.0
-
-
*
-
-
-
*
-
-
*
82.4
-
*
90.6
-
*
100.5
-
*
109.6
Table 4. BUDGET OUTLAYS BY FUNCTION AND SUBFUNCTION, 1974-86-Continued
(In billions of dollars)
Actual
Function and subfunction
1974
1975
1977
TO'
1976
Estimate
1978
1979
1980
1981
1981
1983
1984
1985
1986
123.7
14.7
18.0
5.5
14.0
17.2
145.0
17.5
19.7
6.9
16.2
19.7
161.8
19.4
23.8
8.0
15.6
19.8
176.2
20.9
36.9
9.6
17.8
21.1
185.7
22.2
28.8
10.8
16.3
18.7
198.5
23.1
25.9
11.9
16.3
18.9
213.6
25.0
24.7
12.5
16.6
19.0
Income security:
General retirement and disability insurance .............
Federal employee retirement and disability ..............
Unemployment compensation ...................................
Housing assistance ..................................................
Food and nutrition assistance ..................................
Other income security ..............................................
58.6
5.6
6.1
1.8
4.4
7.9
69.3
7.0
13.5
2.1
6.6
10.1
77.2
8.2
19.5
2.5
8.0
12.2
20.9
2.3
4.0
0.7
1.8
3.1
88.6
9.5
15.3
3.0
8.5
13.0
Total income security ..................................
84.4
108.6
127.4
32.8
137.9
146.2
160.2
193.1
225.1
248.3
282.5
282.4
294.6
311.4
6.8
3.2
3.0
7.9
4.6
3.7
2.1
0.8
1.0
9.2
3.7
9.7
3.4
5.3
*
*
12.9
2.3
7.0
0.2
0.7
13.7
1.9
7.5
0.1
0.7
14.2
1.6
8.3
- 0.5
0.7
14.6
1.3
8.9
0.1
0.8
15.2
1.1
9.3
0.1
0.8
15.7
0.9
9.7
0.1
0.8
*
-0.1
0.5
- *
*
10.8
2.8
5.6
0.2
0.6
- *
11.7
2.3
6.5
*
8.4
5.5
4.0
- 0.1
0.6
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 services .......................
Deductions for offsetting receipts ............................
-
0.4
*
-
0.5
-
*
-
*
-
0.1
-
97.2 108 .5
10.7
12.4
11.8
10.7
3.7
4.4
8.9
10.8
13.9
13.4
4.7
*
0.6
-
*
-
0.7
-
*
-
*
-
*
-
•
-
*
-
*
•
-
Total veterans benefits and services.........
13.4
16.6
18.4
4.0
18.0
19.0
19.9
21.2
23.0
24.0
24.4
25.7
26.5
27.2
Administration of justice:
Federal law enforcement activities ...........................
Federal litigative and judicial activities ....................
Federal correctional activities ...................................
Criminal justice assistance .......................................
Deductions for offsetting receipts ............................
1.1
0.4
0.2
0.8
1.3
0.5
0.2
0.9
1.5
0.4
0.2
0.1
0.2
1.7
0.8
0.2
0.8
1.8
0.9
0.3
0.7
2.0
1.1
0.3
0.7
2.2
0.7
0.2
0.9
2.5
1.5
0.4
0.3
3.0
1.7
0.4
0.2
3.3
1.6
0.5
0.2
3.2
1.6
0.5
0.2
3.2
1.6
0.5
0.1
*
0.3
0.7
- *
2.4
1.5
0.4
0.5
- *
4.2
4.6
4.7
Total administration of justice ...................
-
*
2.5
-
•
2.9
-
•
3.3
-
*
0.9
-
*
3.6
-
*
3.8
-
1.3
-
*
4.7
-
•
5.3
-
•
5.5
-
*
5.5
-
*
5.5
General government:
legislative functions ................................................
Executive direction and management.. .....................
Central fiscal operations ..........................................
General property and records management.. ............
Central personnel management ................................
Other general government .......................................
Deductions for offsetting receipts ............................
0.5
0.1
1.3
1.0
0.1
0.4
-0.2
0.6
0.1
1.8
0.4
0.1
0.4
- 0.2
0.7
0.1
1.8
0.1
0.1
0.4
-0.2
Total general government.. .........................
3.2
3.1
General purpose fiscal assistance:
General revenue sharing ..........................................
Other general purpose fiscal assistance ...................
6.1
0.8
Total general purpose fiscal assistance ....
0.2
0.2
-0.1
0.8
0.1
1.8
0.1
0.1
0.4
-0.2
0.9
0.1
2.1
0.2
0.1
0.4
-0.2
0.9
0.1
2.3
0.2
0.1
0.5
-0.1
1.0
0.1
2.5
0.4
0.2
0.6
-0.2
1.0
0.1
2.6
0.2
0.2
0.7
-0.2
1.2
0.1
2.7
0.3
0.1
0.5
-0.2
1.3
0.1
3.3
0.6
0.1
0.6
-0.2
1.3
0.1
3.5
0.4
0.2
0.7
-0.2
1.3
0.1
3.6
0.5
0.2
0.5
- 0.2
1.4
0.1
3.7
0.4
0.2
0.5
- 0.2
2.9
0.9
3.2
3.7
4.1
4.5
4.6
4.7
5.8
6.0
6.0
6.1
6.1
1.1
6.2
1.0
1.6
0.5
6.8
2.7
6.8
2.8
6.9
1.5
6.8
1.7
5.1
1.7
4.6
1.8
4.6
1.8
4.6
2.4
4.6
2.3
4.6
2.5
6.9
7.2
7.2
2.1
9.5
9.6
8.4
8.6
6.9
6.4
6.4
7.0
6.8
7.1
Net interest:
Interest on the public debt ......................................
Interest received by trust funds ...............................
Other interest ..........................................................
29.3
- 6.6
-1.3
32.7
- 7.7
-1.8
37.1
- 7.8
-2.6
8.1
-0.3
- 0.9
41.9
-8.1
-3.9
48.7
-8.5
-4.7
Total net interest.. .......................................
21.4
23.2
26.7
6.9
29.9
35.4
*
0.4
0.1
*
59.8
74.8
95.5 117.2 128.1 144.5 164.7 179.4
-10.0 - 12.0 -13.8 -16.1 - 16.3 -16.9 -23.0 -28.1
-7.3 - 10.3 - 13.0 -16.4 - 22.8 -24.5 -27.5 - 28.6
42.6
52.5
68.7
84.7
88.9 103.2 114.2 122.7
Allowances:
Civilian agency pay raises ........................................ ............... ............... ............................................. ............... .............................. ............... ............... ............... ...............
Contingencies for other requirements ....................... ........................................................................................................................
Increased employing agency payments for employ·
ee retirement ..................................................................... ......................................................................................................... ....... ..... " . ............... ...............
0.9
1.8
3.8
1.9
1.9
Total allowances .......................................... ............................................................ ............... .............................. ............... ............... ............... ...............
3.7
5.7
0.9
Undistributed offsetting receipts:
Employer share, employee retirement ...................... -3.3 -4.0 - 4.2 -1.0
-4.5 -5.0 -5.3 -5.8 -6.4 - 7.0 -8.2 -9.9 - 11.5 -12.0
Rents and royalties on the Outer Continental Shelf . - 6.7 -2.4
-2.7 - 1.3 - 2.4 -2.3 -3.3 -4.1 -10.1 -6.2 -11 .8 -11 .9 - 12.2 - 13.4
Federal surplus property disposition ......................... .............................. ........................................................................... ............... ............... ............... -0.4 - 1.0 -0.9 -1.0
~
~
Total undistributed offsetting receipts ..... -10.1
- 6.4
- 6.9
- 2.3
-6.9
-7.2
- 8.5
- 9.9 - 16.5 - 13.3 - 20.4 -22.8 - 24.6
Total budget outlays ...................................
324.2
364.5
94.2
400.5
448.4
491.0
576.7
267.9
657.2
728.4
805.2
848.5
918.5
-26.4
989.6
Table 4. BUDGET OUTLAYS BY FUNCTION AND SUBFUNCTION, 1974-86-Continued
(In billions of dollars)
Actual
Function and subfunction
1974
Ou~::;~:;::~%:::~~~a:..~~.~~~~~~.: . . . . . . . . . . . . . ...............
1975
1976
Ta '
1977
Estimate
1978
1979
1980
1981
1982
1983
1984
1985
1986
I
0.1 I
0.8
0.2
1.4
1.5
1.3
1.9
1.9
2.3
2.8
4.2
3.5
3.4
929.0
999.0
General science, space and technology .................... ............... .............................. .............. .
0.1
0.2
0.2
0.1
0.1
0.1
0.2 -0.1 -0.1 -0.1
Energy.....................................................................
0.5
0.7
1.1
0.3
1.6
2.2
2.3
3.8
4.9
8.8
1.9
1.1
6.7
5.9
Agriculture............................................................... ...............
1.4
0.7
0.4
1.2
3.6
4.0
5.0
5.8
1.1
0.8 -0.1 -0.2 -0.2
Commerce and housing credit.Postal Service .....................................................
0.8
1.1
1.1 -0.7 -0.2 -0.5 -0.9 -0.4
0.1 -0.6
0.9
1.9 -0.2 -0.1
Mortgage credit and other .................................. ...............
3.2
2.7
0.3
3.2
3.4
3.0
2.0
4.2
2.9
2.9
0.3
0.3
0.3
Subtotal, commerce and housing credit..........
0.8
4.3
3.8 -0.5
3.0
2.9
2.1
4.3
2.4
3.8
2.1
0.1
0.2
1.6
Transportation...... .................................................... ...............
0.5
0.3
0.1
0.2
0.1
0.1
0.1
*
*
*
*
0.2
*
Community and regional development......................
0.1
0.6
0.7
0.2
0.7
0.8
0.9
1.2
1.0
0.9
0.5
0.3
1.2
1.2
Education................................................................. 0.1
0.1
0.2
*
0.1
0.2
0.5
0.7 ............... .......................................... .
1.1
2.0
Health......................................................................
*
0.1
0.1
*
0.1
*
*
*
*
*
*
*
*
*
Income security ..................................................................... , ............... ............... ............... ............... ............... ...............
0.1
0.8
0.7
0.6
*
*
*
General government................................................. ...............
0.2 -0.2 -0.1
0.2
*
*
0.2
0.1
*
*
*
*
*
General purpose fiscal assistance ............................ ............... ............... ...............
1.1
0.1 -1.2 ............... ........................................................................... .............. , ........... ..
Total outlays of off-budget federal entities.....
1.4
8.1
1.3
1.8
8.7
10.4
12.5
14.2
21.0
11.3
11.0
14.0
10.5
9.4
Total outlays including off-budget federal
entities....................................................... 2694
332.3
371.8
96.0
409.2
458.7
503.5
590.9
678.2
745.7
822.2
*$50 million 01 ~ss.
'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 Ta refers to the transition quarter from July 1 to Sept. 30, 1976.
862.5
Table 5. BUDGET OUTLAYS BY AGENCY, 1982--38
(In billions 01 dollars)
Estimate
1982
actual
1983
1984
1985
1986
1987
1988
Budget outlays by agency:
Legislative branch ......................................
1.4
1.5
1.6
1.6
1.6
1.6
1.7
.8
.9
.9
.9
.9
.9
The Judiciary .............................................
.7
.1
.1
.1
.1
.1
Executive Office of the Presidenl... ............
.1
.1
Funds appropriated to the Presidenl... .......
6.1
7.3
7.9
8.1
8.0
8.0
7.9
36.2
45.0
35.0
32.9
32.4
32.9
33.1
Agriculture .................................................
2.0
1.7
1.6
1.5
1.6
1.6
Commerce ..................................................
2.0
Defense-Military ,................................... 182.9 208.9
238.6 277.5 314.9 345.6 377.0
3.0
2.9
2.2
2.2
2.3
2.4
2.6
Defense-Civil ...........................................
Education ...................................................
14.1
14.4
13.5
13.4
13.0
12.9
13.0
8.7
8.8
9.6
10.1
10.7
10.7
Energy .......................................................
7.6
274.4 288.8 312.6 336.2 363.0 392.3
Health and Human Services ....................... 251.3
14.9
13.7
12.8
12.9
14.0
14.8
Housing and Urban Developmenl... ............ 14.5
3.9
4.0
3.6
2.9
2.4
3.4
Interior ......................................................
3.3
2.6
3.3
3.3
3.3
Justice .......................................................
3.0
3.3
3.3
43.0
34.3
Labor ......................................................... 30.7
30.5
28.9
28.0
27.3
2.9
State .........................................................
2.2
2.3
2.6
2.7
2.8
3.0
24.4
25.5
Transportation 2 .•..•.• ..... . .. . .. . .. . .. •..•.••..•..•. . .•
19.9
21.2
26.3
27.1
27.5
Treasury ............. ....................................... 1l0.5
118.0 135.0 152.2 167.2 179.0 189.4
4.4
4.1
4.0
3.4
Environmental Protection Agency ...........•..
5.1
3.8
3.6
National Aeronautics and Space Adminis·
6.7
7.0
7.0
6.4
6.3
tration ...................................................
6.0
5.7
Veterans Administration .............................
23.9
24.4
25.7
26.4
27.1
27.8
28.7
24.2
25.9
27.5
29.2
Office of Personnel Management ...............
20.0
21.5
23.2
Other agencies ...........................................
13.1
12.5
11.4
10.4
10.3
9.6
9.3
Allowances 3 .... . ..................... ...... .............. ............... ...............
.9
3.7
5.7
7.7
9.8
Undistributed offsetting receipts ................ - 29.3 - 36.8 - 39.6 - 47.7 - 54.5 - 61.4 -68.7
Total budget outlays .....................
728.4
805.2
848.5
918.5
989.6 1,058.4 1,126.9
Budget surplus or deficit(-) ...... -110.6 - 207.7 - 188.8 - 194.2 - 147.7 -142.1 -116.7
'Includes allowances for civilian and military pay raises for Department of Oefense.
' Includes allowances for military pay raises for the Coast Guard.
' Includes allowances for civilian agency pay raises and increased employing agency payments for employee retirement.
79
Table 6. NEW DIRECT LOAN OBLIGATIONS BY AGENCY, 1982-84
(In millions of dollars)
1982
aclual
1983
eslimale
1984
estimale
ON-BUDGET AGENCIES
2,344
2,186
Funds Appropriated to the President ................................... .
1.798
27,441
Agriculture .......................................................................... .
27,669
19,831
Commerce ........................................................................... .
17
11 ...........................
Education ............................................................................ .
504
570
424
4
Energy ................................................................................. .
40
40
Health and Human Services.................................................
27
47
16
Housing and Urban Development ........................................ .
4,043
2,565
1,769
Interior .................................................................................
31
57
56
Labor................................................................................... .
3
*
*
State ....................................................................................
1
1
1
Transportation ......................................................................
138
183
62
Veterans Administration .......................................................
874
849
885
Other independent agencies:
District of Columbia .........................................................
285
295
115
Export-Import Bank .........................................................
3,516
3,830
3,830
Federal Home Loan Bank Board ......................................
. 37
National Consumer Cooperative Bank ..............................
11
National Credit Union Administration ...............................
104
119
115
Small Business Administration .........................................
920
1.190
953
Tennessee Valley Authority .............................................. f---_ _ _7_7+__ _ _---'-'-+-___
89
-'99
--'39,633 _ _---'-'''-'-'-'30,383
Subtotal, on-budget agencies ............................. f---_ _4--'0-'-',0.:.57- +_ _---'-'-'-'-'--+
OFF-BUDGET FEDERAL ENTITIES
Rural Electrification Administration ......................................
Federal Financing Bank (FFB) .............................................
United States Railway Association ........................................
1,284
26,232
1,286
26,465
760
21,771
*
r-----~----~-----
Subtotal, off-budget Federal entities ................ r-__2_7-',5_
-- 16- +___2_7-',7_
-- 5_1 ~--22-'--,5__
31
Subtotal, on- and off-budget..............................
67,574
67,383
52,914
Less:
Loan assets sold to the FFB ............................................
- 12,630
- 11,408
-7,406
Repurchases of loan assets from the FFB ....................... f---__----'
7,.:. c38:...7+-_ _-_6c:. :9,.:.09- +___
- -'-6,-,-,68-,--2
Total .......................................................... ............
47,556
49,067
38,827
• less than $500 thousand.
80
Table 7. NEW GUARANTEED LOAN COMMITMENTS BY AGENCY, 1982-84
(In millions 01 dollars)
Department or other unit
1981
actual
Funds Appropriated to the President ....................................
3,304
Agriculture ,...................................................................... ...
19,489
Commerce ............................................................................
53
Defense ................................................................................
25
Education .............................................................................
6,895
Energy .................................................................................. .............................
Health and Human Services .................................................
217
Housing and Urban Development .........................................
68,422
Interior .................................................................................
28
Transportation ......................................................................
698
Treasury ...............................................................................
600
National Aeronautics and Space Administration....................
146
Veterans Administration .......................................................
5,983
Other independent agencies:
Export-Import Bank .........................................................
5,832
General Services Administration.......................................
12
National Credit Union Administration ...............................
34
Small Business Administration .........................................
2,075
Tennessee Valley Authority ..............................................
4,513
1983
estimate
1984
estimate
4,433
21,383
29
4,736
13,879
6,778
153
254
129,012
16
728
7,391
172
187
113,159
19
615
205
18,648
37
19,875
8,000
10,000
30
28
2,800
2,800
5,412
6,258
r-----~--r_----~--r_----~--
Subtotal, guaranteed loans (gross) .......................
less:
Secondary guarantee loans ..............................................
Guaranteed loans held as direct loans .............................
Total ......................................................................
118,325
197,882
179,155
- 36,382
- 28,217
-68,250
-26,966
-58,650
-21 ,771
53,726
102,667
98,734
r-----~-+----~~+-----~-
'Incfudes Rural Electrification Administration off-budget activities as follows: 1981. $5,640 million; 1983, $5,310 million; 1984, $3,815 million.
81
Table 8. FEDERAL FINANCES AND THE GROSS NATIONAL PRODUCT, 1965-86
(Dollar amounts in billions)
Budget receipts
Rscal year
Gross
national
product
Amount
Percent
of GNP
Surptus or deficit (-)
Outtays
Amount
Total
Off ·budget Federat
Budget
Budget
entities
Percent
of GNP
Amount
Percent
of GNP
Amount
Percent
of GNP
Amount
Federat debt. end of year
Total (including off·
budget) ,
Percent
of GNP
Amount
Percent
of GNP
Held by the public
Total
Amount
Percent
of GNP
Amount
Percent
of GNP
1965 ............................
1966 ............................
1967 ............................
1968 ............................
659.5
724.1
777.3
831.3
116.8
130.9
148.9
153.0
17.7
18.1
19.2
18.4
118.4
134.7
157.6
178.1
18.0
18.6
20.3
21.4
... ... ... ...... ............ .. .
............... ...............
............... ...............
............... ...............
118.4
134.7
157.6
178.1
17.9 -l.6
18.6 -3.8
20.3 -8.7
2l.4 -25.2
.2 -l.6
.5 -3.8
1.1 -8.7
3.0 -25.2
.2
.5
1.1
3.0
323.2
329.5
341.3
369.8
49.0
45.5
43.9
44.5
36l.6
264.7
267.5
290.6
39.6
36.5
34.5
34.8
1969 ............................
1970 ............................
1971 ............................
1972 ............................
1973 ............................
910.6
968.8
1,03l.5
1,128.8
1,252.0
186.9
192.8
187.1
207.3
230.8
20.5
19.9
18.1
18.4
18.4
183.6
195.7
210.2
230.7
245.6
20.2
20.2
20.4
20.4
19.6
...............
...............
...............
... ... .........
...............
...............
........ ... ... .
...............
20.2
3.2
20.2 - 2.8
20.4 -23.0
20.4 -23.4
19.6 -14.8
.4
3.2
.3 -2.8
2.2 -23.0
2.1 -23.4
l.2 -14.9
4
.3
2.2
2.1
l.2
367.1
382.6
409.5
437.3
468.4
40.3
39.5
39.7
38.7
37.4
279.5
284.9
304.3
323.8
343.0
30.7
29.4
29.5
28.7
27.4
1974 ............................
1975 ............................
1976 ............................
1977 ............................
1978 ............................
1,379.4
1,479.9
1,640.1
1,862.8
2,09l.3
263.2
279.1
298.1
355.6
399.6
19.1
18.9
18.2
19.1
19.1
267.9
324.2
364.5
400.5
448.4
1979 ............................
1980 ............................
1981 ............................
1982 ............................
1983 estimate ..............
1984 estimate ..............
1985 estimate ..............
1986 estimate..............
2,357.7
2,573.9
2,871.8
3,033.0
3,193.7
3,488.7
3,806.7
4,144.6
463.3
517.1
559.3
617.8
597.5
659.7
724.3
84l.9
19.7
20.1
20.9
20.4
18.7
18.9
19.0
20.3
49l.0
576.7
657.2
728.4
805.2
848.5
918.5
989.6
.1
*
183.6
195.7
210.2
230.7
245.7
19.4
2l.9
22.2
2l.5
2l.4
1.4
8.1
7.3
8.7
10.4
.1
.6
.4
.5
.5
269.4
332.3
371.8
409.2
458.7
19.5
22.5
22.7
22.0
2l.9
-4.7
-45.2
-66.4
-44.9
-48.8
.3
3.1
4.0
2.4
2.3
-6.1
-53.2
- 73.7
-53.6
-59.2
.4
3.6
4.5
2.9
2.8
486.2
544.1
631.9
709.1
780.4
35.3
36.8
38.5
38.1
37.3
346.1
396.9
480.3
551.8
610.9
25.1
26.8
29.3
29.6
29.2
20.8
22.4
22.9
24.0
25.2
24.3
24.1
23.9
12.5
14.2
21.0
17.3
17.0
14.0
10.5
9.4
.5
.6
.7
.6
.5
.4
.3
.2
503.5
590.9
678.2
745.7
822.2
862.5
929.0
999.0
21.4
23.0
23.6
24.6
25.7
24.7
24.4
24.1
-27.7
-59.6
-57.9
-110.7
-207.7
-188.8
-194.2
-147.7
l.2
2.3
2.0
3.6
6.5
5.4
5.1
3.6
-40.2
-73.8
-78.9
-127.9
-224.8
-202.8
-204.7
-157.1
1.7
2.9
2.8
4.2
7.0
5.8
5.4
3.8
833.8
914.3
1,003.9
1,147.0
1,383.7
1,606.3
1,845.5
2,047.4
35.4
35.5
35.0
37.8
43.3
46.0
48.5
49.4
644.6
715.1
794.4
929.4
1,144.4
1,347.4
1,551.3
1,707.5
27.3
27.9
27.8
30.6
35.8
38.6
40.8
4l.2
·0.05% 01 less.
'The off·budget deficits are equal to the off·budget ootlays but wit11 the oppoSite sign.
Table 9. FULL-TIME EQUIVALENT OF TOTAL FEDERAL CIVILIAN EMPLOYMENT IN THE EXECUTIVE
BRANCH. I 1982-85
(Excluding Ihe Postal Service)
Fiscal year
1981 revised
Budget
estimate 2
1981 actual'
1983 estimate
1984 estimate
1985 estimate
121,000
111,853
111,000
108,900
Agriculture .......................................................
106,900
36,300
32,437
35,400
33,100
33,800
Commerce ........................................................
32,100
31,263
30,600
28,900
Defense-civil functions ..................................
28,900
6,600
5,639
5,500
5,300
5,200
Education .........................................................
18,700
17,920
16,700
15,800
15,800
Energy ..............................................................
154,000
141,548
142,000
137,900
134,000
Health and Human Services.............................
15,700
14,609
14,000
12,700
12,700
Housing and Urban Development .....................
81,700
73,220
74,900
73,500
Interior .............................................................
73,500
53,876
56,900
Justice ..............................................................
54,400
58,200
58,800
21 ,600
19,184
19,400
19,300
18,800
labor ................................................................
22,900
23,545
23,900
24,400
24,400
State ................................................................
68,100
60,340
62,600
62,500
Transportation ..................................................
62,500
124,300
115,829
127,100
126,300
Treasury ...........................................................
126,000
12,900
11,450
10,900
10,400
Environmental Protection Agency .....................
10,400
National Aeronautics and Space Administra22,430
22,000
tion ..............................................................
22,700
22,000
22,000
Veterans Administration ................................... 209,600
215,321
217,100
219,000
220,600
Other:
Agency for International Development .........
5,600
5,385
5,400
5,300
5,(00
32,800
30,168
29,600
29,100
29,100
General Services Administration ...................
Nuclear Regulatory Commission ...................
3,400
3,468
3,400
3,400
3,300
6,600
5,996
5,900
5,800
5,800
Office of Personnel Management .................
Panama Canal Commission ..........................
9,100
8,708
8,900
8,900
8,900
4,700
4,340
4,300
Small Business Administration .....................
4,100
3,900
Tennessee Valley Authority ..........................
44,700
41 ,230
40,600
39,600
40,000
United States Information Agency ...............
7,600
7,805
8,100
8,500
8,500
Miscellaneous ..............................................
45,000
40,118
40,400
40,100
39,900
Contingencies ...................................................
1,000 ..... ..... ... ..... ... .. ....... .. .. ...... .. .... .... .. ........... ...................
Estimated nondefense lapse............................. ..................... ..................... - 15,000 -15,000
-15,000
Subtotal .............................................. 1,163,100
Defense-military functions 4 .. ........................
937,700
1,097,682
978,081
1,101,600
968,800
1,088,000
989,900
1,083,800
992,000
Total ................................................... 2,100,800
2,075,763
2,070,400
2,077,900
2,075,800
• Excludes developmental positions under the Worker·Trainee Opportunity Program (WTOP) as well as certain statutory exemptions.
2 As contained in the revised 1981 Budget, transmitted to the Congress in March 1981.
' Data are estimated for portions of Defense-civil functions as well as for the Federal Reserve System, Board of Governors, the International
Trade CommiSSion, and the Merit Systems Protection Board .
• Section 904 of the 1981 Defense Authorization Act ( Publ ~ law 97-86) exempts the Department of Defense from full·time equivalent
employment controls. Data shown are estimated.
83
Table 10. BUDGET RECEIPTS AND OUTLAYS, 1789-1986
fiscat year
BUdget
receipts
Budget
outlays
BUd~et
surp us
or
deficit (-)
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
+70
-991
+119
-52
-49
-22,909
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
+509
+736
+713
+963
+717
+865
+ 1,155
+939
+734
+738
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
-462
-2,735
-2,602
- 3,630
- 2,791
-4,425
-2,777
-1,177
-3,862
-3,095
1941.. ............
1942 ..............
1943 ..............
1944 ..............
1945 ..............
1946 ..............
1947.. ............
1948 ..............
1949 ..............
1950 ..............
8,621
14,350
23,649
44,276
45,216
39,327
38,394
41,774
39,437
39,485
13,634
35,114
78,533
91 ,280
92,690
55,183
34,532
29,773
38,834
42,597
- 5,013
- 20,764
-54,884
- 47,004
-47,474
-15,856
+3,862
+ 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
Fiscal year
1
(in millions of dollars)
Budget
receipts
1961.. ............
1962 ..............
1963 ..............
1964 ..............
1965 ..............
1966 ..............
1967 ..............
1968 ..............
1969 ..............
1970 ..............
1971 ..............
1972 ..............
1973 ..............
1974 ..............
1975 ..............
1976 ..............
TQ 2 ...............
1977 ..............
1978 ..............
1979 ..............
1980 ..............
1981.. ............
1982 ..............
1983 est.. ......
1984 est.. ......
1985 est.. ......
1986 est.. ......
94,389
99,676
106,560
112,662
116,833
130,856
148,906
152,973
186,882
192,807
187,139
207,309
230,799
263,224
279,090
298,060
81,232
355,559
399,561
463,302
517,112
599,272
617,766
597,494
659,702
724,318
841,879
BUd~et
Budget
outlays
surp us
or
deficit (-)
97,795
106,813
-3,406
-7,137
-4,751
- 5,922 .
- 1,596
-3,796
-8,702
- 25,161
+3,236
-2,845
-23,033
- 23,373
- 14,849
-4,688
-45,154
-66,413
-12,956
-44,948
-48,807
-27,694
-59,563
-57,932
-110,609
-207,708
-188,781
-194,197
-147,692
1ll,3ll
118,584
118,430
134,652
157,608
178,134
183,645
195,652
210,172
230,681
245,647
267,912
324,245
364,473
94,188
400,506
448,368
490,997
576,675
657,204
728,375
805,202
848,483
918,515
989,571
Totals, including outlays of off-budget federal entities 3
Fiscal year
1973 ..............
1974 ..............
1975 ..............
1976 ..............
TQ ..................
1977 ..............
1978 ..............
1979 ..............
1980 ..............
1981.. ............
1982 ..............
1983 est.. ......
1984 est.. ......
1985 est.. ......
1986 est.. ......
~~t~ft~
budget
Federal
entities
60
1,447
8,088
7,307
1,785
8,700
10,359
12,467
14,245
21,005
17,331
17,045
14,042
10,462
9,447
Total
outlays
245,707
269,359
332,332
371,779
95,973
409,206
458,726
503,464
590,920
678,209
745,706
822,248
862,524
928,978
999,018
Total
bud~et
surp us
or
deficit (-)
-14,908
-6,135
-53,242
-73,719
-14,741
-53,647
- 59,166
-40,162
-73,808
-78,936
-127,940
- 224,754
-202,822
-204,660
-157,139
, Data for 1789-1939 are for the administrative budget data for 1940 and all following years 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.
84
GLOSSARY
AUTHORIZING LEGISLATION-Legislation enacted by the Congress to set up or
continue the operation of a Federal program or agency. Authorizing legislation
is normally a prerequisite for subsequent appropriations, but does not usually
provide budget authority (see below).
BUDGET AMENDMENT-A proposal that the President transmits to the Congress
to revise his budget request after he formally transmits the budget but before
the Congress has completed appropriations action.
BUDGET AUTHORITY (SAl-Authority provided by law to enter into obligations
that will result in immediate or future outlays. It may be classified by the
period of availability, by the timing of congressional action, or by the manner
of determining the amount available. The basic forms of budget authority are:
Appropriations-Authority that permits Federal agencies to incur obligations and
to make payments.
Authority to borrow-Authority that permits Federal agencies to incur obligations
and to borrow money to make payments.
Contract authority-Authority 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
powers. Budget receipts also include gifts and contributions. Excluded are
amounts received from strictly business-type transactions (such as sales, interest, or loan repayments) and payments between Government accounts. (See
offsetting receipts.)
BUDGET SURPLUS OR DEFICIT-Difference between budget receipts and outlays.
CONCURRENT RESOLUTION ON THE BUDGET-A resolution passed by both
Houses of the Congress, but not requiring the signature of the President,
setting targets or binding Federal budget totals for the Congress.
CONTINUING RESOLUTION-Legislation enacted by the Congress to provide
budget authority for specific ongoing activities when a regular appropriation
for those activities has not been enacted by the beginning of the fiscal year.
CURRENT SERVICES ESTIMATES-Estimates of receipts, outlays and budget authority for upcoming fiscal years that assume no policy changes from the year
in progress. The estiIilates do show the effects of anticipated changes in economic conditions (such as unemployment or inflation), beneficiary levels, pay
increases, and changes required under existing law.
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 fiscal year and may be overturned at any time by either House of the
Congress.
FEDERAL FUNDS-Amounts 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 intragovernmental funds. The major Federal fund is the general fund,
which is derived from general taxes and borrowing. The other form of Federal
85
funds involves earmarked collections, such as those generated by and used to
finance a continuing cycle of business-type operations.
FISCAL YEAR-The Federal Government's yearly accounting period, which begins
on October 1 and ends on the following September 30. The fiscal year is
designated by the calendar year in which it ends; e.g., fiscal year 1984 begins
on October 1, 1983, and ends on September 30, 1984. (From 1844 to 1976 the
fiscal year began on July 1 and ended on the following 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).
.
OBLIGATIONS-Amounts of orders placed, contracts awarded, services received, or
similar legally binding commitments made by Federal agencies during a given
period that will require outlays during the same or some future period.
OFF-BUDGET FEDERAL ENTITIES-Federal organizations or programs that
belong in the budget under current budget accounting concepts but that have
been excluded from the budget totals under provisions of law.
OFFSETTING RECEIPTS-Collections deposited in receipt accounts that are offset
against budget authority and outlays rather than being counted as budget
receipts. These collections are derived from Government accounts or from the
public through activities that are of a business-type or market-oriented nature.
Offsetting receipts are classified as intragovernmental transactions or proprietary receipts from the public.
OUTLAYS-Checks issued or cash disbursed. Outlays include interest accrued on
the public debt, or other forms of payment, net of refunds and reimbursements.
RECONCILIATION-A directive that calls on various committees of the Congress to
recommend legislative changes that reduce outlays or increase receipts by
specified amounts.
RESCISSION-A legislative action canceling budget authority previously provided
by the Congress.
SUPPLEMENTAL APPROPRIATION-An appropriation enacted subsequent to a
regular annual appropriation act. Supplemental appropriation acts provide
additional budget authority 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.
TAX EXPENDITURES-Provisions of the Federal income tax laws that allow a
special exclusion, exemption, or deduction from gross income or provide a
special credit, preferential rate of tax, or deferral of tax liability. Tax expenditures frequently have results similar to spending programs, loan guarantees,
or regulations.
TRUST FUNDS-Amounts collected and used by the Federal Government for carrying out specific purposes and programs according to a statute or trust agreement, such as the social security and unemployment trust funds. Trust funds
are not available for the general purposes of the Government. Trust fund
receipts that are not needed immediately are generally invested in Government securities and earn interest for the trust fund.
For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C . 20402
86
THE BUDGET DOCUMENTS
Budget of the United States Government, 1984 contains the Budget Message of the
President and presents an overview of the President's budget proposals. It includes
explanations of spending programs in terms of national needs, agency missions, and
basic programs, and an analysis of estimated receipts, including a discussion of the
President's tax program. This document also contains a description of the budget
system and various summary tables on the budget as a whole.
United States Budget in Brief, 1984 is designed for use by the general public. It
provides a more concise, less technical overview of the 1984 budget than the above
volume. Summary and historical tables on the Federal budget and debt are also
provided, together with graphic displays.
Budget of the United States Government, 1984-Appendix contains detailed information on the various appropriations and funds that 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, new legislative proposals, 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. Supplementals and rescission proposals for the current year
are presented separately. Information is also provided on certain activities whose
outlays are not part of the budget totals.
Special Analyses, Budget of the United States Government, 1984 contains analyses
that are designed to highlight specified program areas or provide other significant
presentations of Federal budget data. This document includes 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 wh,9le; and Government-wide program and financial information for
Federal civil rights and research and development programs.
Instructions for purchasing copies of any of these documents are on the last two
pages of this volume.
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