Joint Statement Of John W. Snow, Secretary Of The Treasury, And Joshua B. Bolten, Director Of The Office Of Management And Budget, On Budget Results For Fiscal Year 2005

The Administration today is releasing the September 2005 Monthly Treasury Statement of Receipts and Outlays of the United States Government . The statement shows the actual budget totals for the fiscal year that ended September 30, 2005, as follows:

"The year-end budget report highlights the positive results of the President's economic leadership. Lower taxes and pro-growth economic policies have created millions of jobs and a growing economy that has swelled tax revenues over the last year. While deficits are never welcome, the fact that we finished FY 2005 with a much lower-than-expected deficit is encouraging news.

While the effects of Hurricanes Katrina and Rita will be felt in the short term, we remain on a path to meet the President's goal of cutting the deficit in half by 2009. It's important that we ensure continued economic growth by keeping the President's economic policies in place and making the tax cuts permanent."

- Secretary John W. Snow

"The President's pro-growth policies have succeeded in sustaining an economic expansion that has created 4.2 million jobs since May 2003 and produced a 14.6 percent increase in tax receipts this year.

As we help the people of the Gulf Coast region recover and rebuild from Hurricane Katrina, it is more important than ever that we continue the pro-growth economic policies that have contributed to a strong expansion and a surge in revenues. We must also redouble our efforts to reduce unnecessary spending elsewhere in the budget to help offset recovery costs and keep us on track to meet the President's goal of cutting the deficit in half by 2009."

- Director Joshua B. Bolten

The FY 2005 unified deficit was $319 billion, or an estimated 2.6 percent of the Gross Domestic Product (GDP). As a percent of GDP, the 2005 deficit was lower than the deficits of 16 of the last 25 years. The deficit for FY 2005 was $14 billion, or 4.2 percent, lower than projected in the Mid-Session Review (MSR). Receipts were higher by $15 billion and outlays were higher by $1 billion. The deficit was $108 billion, or 25.3 percent, lower than projected less than a year ago in the FY 2006 Budget. Receipts were higher by $101 billion and outlays were lower by $6 billion.

Receipts in 2005 were 14.6 percent higher than in 2004, the highest increase in receipts in over 20 years. Outlays grew by 7.9 percent above the previous year. The 7.9 percent increase in total outlays was driven by growth in five major agencies – the Departments of Agriculture, Defense - Military, Education, Homeland Security, and Veterans Affairs – net interest, and Medicare. Altogether, these outlays grew by 12.6 percent, and accounted for $137 billion of the $180 billion increase in outlays over 2004. The total growth in outlays is somewhat reduced by slower growth rates in a number of other agencies and programs.

Total receipts for FY 2005 were $2,154 billion, $15 billion higher than the MSR estimate of $2,140 billion. Almost $13 billion of this increase was attributable to higher-than-estimated collections of corporation income taxes. The remaining increase was attributable to higher-than-expected collections of social insurance and retirement receipts, excise taxes, estate and gift taxes, and miscellaneous receipts, which were partially offset by lower-than-estimated collections of individual income taxes and customs duties. Table 2 displays actual receipts and estimates from the Budget and the MSR by source.

Individual income taxes were $927 billion, $2 billion lower than the MSR estimate. This decrease relative to MSR was attributable to lower-than-estimated withheld tax payments and reallocations of withheld tax payments from individual income taxes to the Social Security and Medicare Trust Funds, which more than offset higher-than-estimated non-withheld tax payments and lower-than-estimated refunds. The reallocations, which are accounting adjustments based on more recent data, did not change the overall level of receipts, only the allocation of collections between individual income taxes and the social insurance trust funds (see the discussion of social insurance and retirement receipts below).

Corporation income taxes were $278 billion, nearly $13 billion greater than the MSR estimate. This increase was the combined effect of higher-than-expected payments and lower-than-estimated refunds.

Social insurance and retirement receipts were $795 billion, $2 billion higher than the MSR estimate. This increase was primarily attributable to the reallocation of withheld tax receipts from individual income taxes to the Social Security and Medicare Trust Funds. The adjustment offsets the adjustment to individual income taxes described above; there is no impact on total receipts.

Other sources of receipts, which totaled $154 billion, exceeded the MSR estimate by a net $2 billion. Excise taxes and estate and gift taxes each exceeded the corresponding MSR estimate by $1 billion. Miscellaneous receipts, which exceeded the MSR estimate by $2 billion, were offset by lower-than-expected customs duties of $2 billion. These changes in miscellaneous receipts and customs duties were in large part due to Congressional inaction on the Administration's proposal to repeal the Byrd Amendment, which would not have changed the overall level of receipts, only the allocation of collections between customs duties and miscellaneous receipts.

Total outlays were $2,473 billion, $1 billion above the MSR estimate. The majority of agency outlays were down from the MSR, although a number of agencies had outlays above the MSR estimates. The largest increases occurred in the Departments of Defense and Homeland Security and the largest decrease occurred in the Department of Agriculture. Table 3 displays actual outlays by agency and major program as well as estimates from the Budget and the MSR. The largest changes in outlays were in the following areas:

The September 2005 Monthly Treasury Statement of Receipts and Outlays of the United States Government containing these results can be found on the Financial Management Service website at: www.fms.treas.gov.



	To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®. October 14, 2005 js-2973 Joint Statement Of John W. Snow, Secretary Of The Treasury, And Joshua B. Bolten, Director Of The Office Of Management And Budget, On Budget Results For Fiscal Year 2005 SUMMARY The Administration today is releasing the September 2005 Monthly Treasury Statement of Receipts and Outlays of the United States Government . The statement shows the actual budget totals for the fiscal year that ended September 30, 2005, as follows: A deficit of $319 billion; total receipts of $2,154 billion; and total outlays of $2,473 billion. "The year-end budget report highlights the positive results of the President's economic leadership. Lower taxes and pro-growth economic policies have created millions of jobs and a growing economy that has swelled tax revenues over the last year. While deficits are never welcome, the fact that we finished FY 2005 with a much lower-than-expected deficit is encouraging news. While the effects of Hurricanes Katrina and Rita will be felt in the short term, we remain on a path to meet the President's goal of cutting the deficit in half by 2009. It's important that we ensure continued economic growth by keeping the President's economic policies in place and making the tax cuts permanent." - Secretary John W. Snow "The President's pro-growth policies have succeeded in sustaining an economic expansion that has created 4.2 million jobs since May 2003 and produced a 14.6 percent increase in tax receipts this year. As we help the people of the Gulf Coast region recover and rebuild from Hurricane Katrina, it is more important than ever that we continue the pro-growth economic policies that have contributed to a strong expansion and a surge in revenues. We must also redouble our efforts to reduce unnecessary spending elsewhere in the budget to help offset recovery costs and keep us on track to meet the President's goal of cutting the deficit in half by 2009." - Director Joshua B. Bolten Table 1. TOTAL RECEIPTS, OUTLAYS AND SURPLUS/DEFICIT (-) (in billions of dollars) Receipts Outlays Surplus/Deficit (-) 2004 Actual.................................... 1,880 2,293 -413 FY 2005 Estimates: FY 2006 Budget........................ 2,053 2,479 -427 FY 2006 Mid-Session Review... 2,140 2,472 -333 Actual......................................... 2,154 2,473 -319 The FY 2005 unified deficit was $319 billion, or an estimated 2.6 percent of the Gross Domestic Product (GDP). As a percent of GDP, the 2005 deficit was lower than the deficits of 16 of the last 25 years. The deficit for FY 2005 was $14 billion, or 4.2 percent, lower than projected in the Mid-Session Review (MSR). Receipts were higher by $15 billion and outlays were higher by $1 billion. The deficit was $108 billion, or 25.3 percent, lower than projected less than a year ago in the FY 2006 Budget. Receipts were higher by $101 billion and outlays were lower by $6 billion. Receipts in 2005 were 14.6 percent higher than in 2004, the highest increase in receipts in over 20 years. Outlays grew by 7.9 percent above the previous year. The 7.9 percent increase in total outlays was driven by growth in five major agencies – the Departments of Agriculture, Defense - Military, Education, Homeland Security, and Veterans Affairs – net interest, and Medicare. Altogether, these outlays grew by 12.6 percent, and accounted for $137 billion of the $180 billion increase in outlays over 2004. The total growth in outlays is somewhat reduced by slower growth rates in a number of other agencies and programs. RECEIPTS Total receipts for FY 2005 were $2,154 billion, $15 billion higher than the MSR estimate of $2,140 billion. Almost $13 billion of this increase was attributable to higher-than-estimated collections of corporation income taxes. The remaining increase was attributable to higher-than-expected collections of social insurance and retirement receipts, excise taxes, estate and gift taxes, and miscellaneous receipts, which were partially offset by lower-than-estimated collections of individual income taxes and customs duties. Table 2 displays actual receipts and estimates from the Budget and the MSR by source. Individual income taxes were $927 billion, $2 billion lower than the MSR estimate. This decrease relative to MSR was attributable to lower-than-estimated withheld tax payments and reallocations of withheld tax payments from individual income taxes to the Social Security and Medicare Trust Funds, which more than offset higher-than-estimated non-withheld tax payments and lower-than-estimated refunds. The reallocations, which are accounting adjustments based on more recent data, did not change the overall level of receipts, only the allocation of collections between individual income taxes and the social insurance trust funds (see the discussion of social insurance and retirement receipts below). Corporation income taxes were $278 billion, nearly $13 billion greater than the MSR estimate. This increase was the combined effect of higher-than-expected payments and lower-than-estimated refunds. Social insurance and retirement receipts were $795 billion, $2 billion higher than the MSR estimate. This increase was primarily attributable to the reallocation of withheld tax receipts from individual income taxes to the Social Security and Medicare Trust Funds. The adjustment offsets the adjustment to individual income taxes described above; there is no impact on total receipts. Other sources of receipts, which totaled $154 billion, exceeded the MSR estimate by a net $2 billion. Excise taxes and estate and gift taxes each exceeded the corresponding MSR estimate by $1 billion. Miscellaneous receipts, which exceeded the MSR estimate by $2 billion, were offset by lower-than-expected customs duties of $2 billion. These changes in miscellaneous receipts and customs duties were in large part due to Congressional inaction on the Administration's proposal to repeal the Byrd Amendment, which would not have changed the overall level of receipts, only the allocation of collections between customs duties and miscellaneous receipts. OUTLAYS Total outlays were $2,473 billion, $1 billion above the MSR estimate. The majority of agency outlays were down from the MSR, although a number of agencies had outlays above the MSR estimates. The largest increases occurred in the Departments of Defense and Homeland Security and the largest decrease occurred in the Department of Agriculture. Table 3 displays actual outlays by agency and major program as well as estimates from the Budget and the MSR. The largest changes in outlays were in the following areas: Department of Homeland Security – Outlays for the Department of Homeland Security were $39 billion in FY 2005, $5 billion above the MSR estimate. This difference is mainly attributable to the $6 billion increase in outlays in Emergency Preparedness and Response (EP&R) Directorate, primarily due to Hurricane Katrina and the four major Florida hurricanes in 2004. Outlays for the EP&R Disaster Relief Fund and the National Flood Insurance Fund were greater than estimated for individual and public assistance and for insurance claims as a result of these hurricanes. Department of Agriculture – Actual net outlays for the Department of Agriculture were $85 billion, a decrease of $4 billion from the MSR estimate. Combined, outlays for the Farm Service Agency (FSA) and the Natural Resources Conservation Service (NRCS) (which include a $1.4 billion cash transfer from the Commodity Credit Corporation (CCC) to the NRCS to cover remaining Farm Bill program expenditures from prior year obligations) were $2 billion below MSR. This decrease is primarily due to lower CCC payments for 2004 disaster programs and lower payments for commodity programs due to higher-than-expected prices for last year's corn and soybeans crop. In addition, FSA outlays were lower due to prepayment of commodity marketing loans by Russia, lower-than-expected guaranteed export loan obligations, and a timing shift in Tobacco Trust payments. Net outlays were also lower than estimated for Child Nutrition and Food Stamp programs, crop insurance payments, fire suppression activities, and rural development credit subsidies. Net outlays for the Rural Utilities Service were $0.6 billion above the MSR mainly due to decreased collections from pre-Credit Reform loans. Department of Defense - Military – In FY 2005, outlays for the Department of Defense - Military were $474 billion, an increase of $4 billion from the MSR estimate. This difference can be attributed to higher-than-anticipated fuel prices as well as increased operational activity resulting from the Global War on Terror. Department of Health and Human Services – Net outlays for the Department of Health and Human Services were $581 billion in FY 2005, $2 billion lower than MSR. Medicare outlays were $6 billion higher than the MSR estimate. A change in accounting for recoveries of overpayments in 2005 results in $2.5 billion of this increase. Previously these recoveries had been deducted from Medicare's reported outlays, now these recoveries are recorded as offsetting receipts and are not deducted from Medicare's gross outlays. Part A increases primarily result from higher-than-expected spending in both inpatient hospital and skilled nursing facilities. Part B increases are primarily due to faster-than-expected spending in physician fee schedule, other carrier, and outpatient hospital services, caused mainly by greater utilization of health services. Collections of proprietary receipts from the public, primarily associated with Medicare, were $3 billion higher than previously estimated. Medicaid outlays were $5 billion lower than MSR estimates, largely as a result of cost-saving measures implemented by States. Executive Office of the President – As a result of a more rapid expenditure from the Iraq Relief and Reconstruction Fund, FY 2005 outlays for the Executive Office of the President were $8 billion, $2 billion higher than MSR. Large infrastructure projects progressed more quickly than previously expected, accelerating outlays for these projects. In addition, outlays for security and democracy programs were higher than previously estimated. Office of Personnel Management – Office of Personnel Management outlays were $60 billion in FY 2005, over $1 billion below MSR. Actual outlays for the Civil Service Retirement and Disability Fund were about $0.8 billion lower than estimated in the MSR, due largely to a lower-than-anticipated increase in the retired employee population. In addition, actual net outlays were about $0.4 billion less for the Employees and Retired Employees Health Benefits Fund due to lower health care costs than estimated in the MSR. Railroad Retirement Board – In FY 2005, net outlays for the Railroad Retirement Board were $2 billion, more than $1 billion lower than estimated at MSR. The National Railroad Retirement Investment Trust's earnings on non-Federal securities, which offset the agency's outlays, were over $1 billion higher than the MSR estimates. Department of Transportation – The Department of Transportation outlays were $57 billion in FY 2005, $1 billion below the MSR estimate. Outlays were $1 billion below the MSR for the Federal Highway Administration due to the delayed enactment of surface transportation legislation that prevented the obligation of some funding for the Federal-aid Highway Program. Department of Justice – In FY 2005, Department of Justice outlays were $23 billion, $1 billion higher than MSR. The largest difference, $1 billion, occurred in the Office of Justice Programs. State and local agencies are submitting requests for reimbursement more quickly than in previous years. In addition, spending for Bureau of Prisons construction and agency-wide information technology occurred faster than anticipated. Department of Veterans Affairs – FY 2005 outlays for the Department of Veterans Affairs were $70 billion, $1 billion higher than MSR. The bulk of this difference is the result of an FY 2005 supplemental of $1.5 billion passed in early August to address the shortfall in funding for medical care. Department of Treasury – The Department of Treasury had FY 2005 actual outlays of $409 billion, $1 billion higher than the MSR estimate. Interest on the public debt paid to the public was $2 billion above the MSR estimate. Changes in interest paid to trust funds and government accounts were largely offsetting. Higher interest paid to the public was partly offset by lower outlays for interest on Internal Revenue Service refunds ($1 billion). The September 2005 Monthly Treasury Statement of Receipts and Outlays of the United States Government containing these results can be found on the Financial Management Service website at: www.fms.treas.gov. REPORTS Joint Statement On Budget Results For Fiscal Year 2005