FROM THE OFFICE OF PUBLIC AFFAIRS

SUMMARY

The Administration is today releasing the September Monthly Treasury Statement of Receipts and Outlays of the United States Government. The statement shows the actual financial totals for the fiscal year that endedSeptember 30, 1997, as follows:

 

-- a deficit of $22.6 billion (0.3 percent of Gross Domestic Product (GDP));

-- total receipts of $1,579.0 billion (19.8 percent of GDP); and

-- total outlays of $1,601.6billion (20.1 percent of GDP).

 

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Table 1. TOTAL RECEIPTS,OUTLAYS AND DEFICITS

(in billions of dollars)

 

 

Receipts OutlaysDeficits

1996 Actual................................................. 1,452.8 1,560.2 -107.4

 

1997:

February Budget Estimate............................ 1,505.4 1,631.0 -125.6

Mid-Session Review Estimate...................... 1,577.7 1,615.0 -37.3

Actual.......................................................... 1,579.0 1,601.6 -22.6

 

 

DEFICIT

 

The actual FY 1997 deficit is $22.6 billion, down from the FY 1996 deficit of $107.4 billion. The FY 1997 deficit figure is $103.0 billion below the February Budget estimate of $125.6 billion, and $14.7 billion lower than the $37.3 billion deficit estimated in the Mid-Session Review (MSR). The changes from the MSR deficit estimate reflect the impact of:

 

-- a $1.3 billion increase in receipts; and

-- a $13.4 billion decrease inoutlays.

 

 

RECEIPTS

 

Actual FY 1997 receipts were $1,579.0billion, $1.3 billion higher than the MSR estimate. Higher-than-expected collections ofindividual income taxes, social insurance taxes and contributions, and excise taxes, werepartially offset by lower-than-expected collections of corporation income taxes andmiscellaneous receipts. Table 2 displays actual receipts and estimates from the budget andMSR by source.

 

Changes in Receipts bySource

· Individual incometaxes were $737.5 billion, $4.5 billion higher than the MSR estimate. Most of the difference is attributable to higher-than-estimated non-withheld payments and lower-than-estimated refunds, partially offset by lower-than-estimated withheld taxes and higher-than-anticipated adjustments between individual income taxes and the receipts of the social security trust funds.

· Corporation income taxeswere $182.3 billion, $4.8 billion lower than the MSR estimate. Higher-than-anticipated refunds paid to corporations account for most of the decrease in this source of receipts.

· Social insurance taxes and contributions were $0.9 billion higher than the MSR estimate of $538.5 billion. Higher-than-anticipated adjustments between individual income taxes and the receipts of the social security trust funds, partially offset by lower-than-estimated unemployment tax receipts, account for most of the net increase in this source of receipts.

· Excise taxes were $1.0billion higher than the MSR estimate, attributable in large part to higher-than-anticipated taxable activity.

· Other receipts, whichinclude estate and gift taxes, customs duties and miscellaneous receipts, were $62.9 billion, $0.4 billion lower than the MSR estimate. Lower-than-anticipated deposits of earnings by the Federal Reserve System, reflecting lower-than-expected asset values on securities denominated in foreign currencies, reduced miscellaneous receipts $0.8 billion relative to the MSR. Customs duties were $0.1 billion below the MSR estimate, in large part attributable to lower-than-anticipated taxable activity. These reductions in miscellaneous receipts and customs duties were partially offset by higher-than-expected estate and gift taxes of $0.5 billion.

 

OUTLAYS

Totaloutlayswere $1,601.6 billion, $13.4 billion lower than the MSRestimate. The major outlay changes since the MSR are described below. Table 3 displaysactual outlays and estimates from the February Budget and the MSR by agency and majorprogram.

Department of Agriculture. Actualoutlays for the Department of Agriculture were $52.6 billion, $2.8 billion below the MSRestimate.

Outlays for the Commodity CreditCorporation were $7.2 billion, $0.5 billion below the MSR estimate. Outlays for commodityprice support loans, wetlands reserve program obligations, and Dairy Export IncentiveProgram payments were $0.3 billion lower than expected. The remaining $0.2 billion isattributable to higher-than-expected collections of export credit direct loans acquired bydefault on export guarantees, and lower-than-expected demand for export credit guarantysubsidies.

Outlays for the Risk ManagementAgency(Federal Crop Insurance) were $1.0 billion, $0.4 billion below the MSR estimate, due tolower-than-expected crop losses. Outlays for the Foreign Agricultural Service loan andgrant programs were $0.4 billion below the MSR estimate of $0.9 billion, largely due tolower spending of prior-year loan obligations and greater collections on loans. Downwardreestimates of prior-year loan subsidies for the rural housing, rural development, andfarm loan programs resulted in receipts $0.3 billion higher than assumed in the MSR.Outlays for the Food Stamp program were $22.9 billion, $0.3 billion below the MSRestimate. Forest Service outlays were $3.2 billion, $0.3 billion below the MSR estimatedue in part to lower-than-expected firefighting costs.

Department of Defense - Military.Actual outlays for the Department of Defense - Military were $258.3 billion, $2.6 billionabove the MSR estimate. The difference was caused by higher-than-expected outlays in theProcurement and Research and Development accounts, particularly in Air Force weaponsprocurement and research and development. Also, the military’sstay in Bosnia caused outlays in the Operations and Maintenance accounts to be higher thanexpected.

Department of Energy. Actualoutlaysfor the Department of Energy were $14.5 billion, $0.7 billion below the MSR estimate. Thedifference is primarily due to slower-than-expected spendout of obligated balances in theDefense Environmental Management and Weapons Account.

Department of Health and HumanServices.Actual outlays for the Department of Health and Human Services were $339.5 billion, $4.9billion below the MSR estimate. The major differences were in the following areas:

Outlays for the Medicare program were $210.4 billion, $1.2 billion below the MSR estimate. Outlays for physician and hospital outpatient services in the Supplementary Medical Insurance program were lower than expected.

Outlays for the Medicaid program were $95.6 billion, $1.9 billion lower than estimated in the MSR. Most of the lower-than-expected growth in Medicaid outlays may be attributable to an improving economy and to reductions in States' welfare case-loads.

Outlays for the Public Health Service agencies were $21.8 billion, $0.9 billion below the MSR estimate, largely because of an over-estimate of the National Institutes of Health outlay rates in the MSR.

Outlays for the Temporary Assistancefor Needy Families (TANF) and related programs were $0.7 billion below MSR estimates. The difference is attributable to declining case-loads caused, in part, by the improving economy.

Department of Housing and UrbanDevelopment. Actual outlays for the Department of Housing and Urban Development were$27.8 billion, $1.2 billion below the MSR estimate.

The difference is the result of aslower-than-expected increase in spending for housing assistance and lower-than-expectedoutlays for mortgage insurance programs for the Federal Housing Administration.

Department of the Interior. Actualoutlays for the Department of the Interior were $6.7 billion, $0.7 billion below the MSRestimate. Outlays for the Bureau of Land Management (BLM) were $0.2 billion lower thanexpected for several major programs including firefighting (due to a less severe fireseason), and slower-than-expected acquisition of computers to support BLM’s newautomated record system for public lands. The Bureau of Reclamation’s outlays were$0.2 billion below the MSR estimate, due largely to delays in spending accumulatedunobligated balances. The remaining difference, $0.1 billion, is attributable toslower-than-expected spending of emergency flood supplemental funding and for Everglades(FL) land acquisition.

Department of Transportation.Actualoutlays for the Department of Transportation were $39.8 billion, $1.3 billion above theMSR estimate. Outlays for the Federal Highway Administration were $20.8 billion, $0.7billion above the MSR estimate, due primarily to a greater number of projects beingcompleted more rapidly by the States than was assumed in the MSR. Outlays for the FederalAviation Administration were $8.8 billion, which exceeded MSR estimates by $0.3 billion.Acquisition reform, including emphasis on purchasing "off the shelf" commercialproducts and products requiring limited development, reduced the time it takes the FAA toaward contracts from over a year to 6 months, causing outlays to be higher thanexpected.

Department of the Treasury. Actualoutlays for the Department of the Treasury were $379.4, $0.8 billion below the MSRestimate. Net outlays for the Exchange Stabilization Fund were $0.7 billion above the MSRestimate, mostly due to exchange rate fluctuations. Treasury receipts of interest fromcredit financing accounts, included in other Treasury outlays, were $1.0 billion higherthan the MSR estimate, largely due to prepayment of interest by the Department ofEducation for the student loan program. Outlays for interest on tax refunds by theInternal Revenue Service were $0.4 billion below the MSR estimate, primarily due totechnical corrections.

Department of Veterans Affairs.Actualoutlays for the Department of Veterans Affairs were $39.3 billion, $0.9 billion below theMSR estimate. Outlays for medical equipment and capital asset purchases were $0.4 billionlower than expected due to purchases made late in FY 1997 that will not result in actualoutlays until FY 1998. Spending for veterans compensation and pensions was approximately$0.2 billion below the MSR estimate due to a number of factors, including lower averagepayments and fewer retroactive payments than assumed in the MSR.

Social Security Administration.Actualoutlays for the Social Security Administration were $393.3 billion, $1.0 billion below theMSR estimate. Outlays for Disability Insurance were $1.1 billion below the MSR estimatedue to lower application rates and lower allowance rates than expected. DisabilityInsurance awards were made in approximately 61,000 fewer cases than was assumed in theMSR.

Federal Emergency ManagementAgency.Actual outlays for the Federal Emergency Management Agency were $3.4 billion, $1.2 billionbelow the MSR estimate. Funds obligated in prior years for certain large publicinfrastructure and hazard mitigation projects did not outlay, as expected, in FY 1997, andare ongoing. All emergency response needs are continuing to be met.

United States Postal Service. Actualnet outlays for the United States Postal Service were $0.5 billion, $1.2 billion below theMSR estimate. Postal revenues were $1.0 billion higher than anticipated in the MSRestimate, partially due to increased mail volume during the UPS strike. Additionaloperating expenses were incurred as a result of this higher mail volume, which increasedoperating disbursements by about $0.5 billion for a net reduction in operating outlays of$0.5 billion. In addition, forecasted capital outlays of $0.7 billion did not occur in FY1997.

Deposit Insurance. Net outlays fordeposit insurance were $0.6 billion below the MSR estimate. This difference is primarilydue to higher-than-anticipated receipts (reducing net outlays) in the FSLIC ResolutionFund arising from the sale of assets formerly held by the Resolution TrustCorporation.

Funds Appropriated to thePresident.Actual outlays of funds appropriated to the President were $10.2 billion, $0.7 billionabove the MSR estimate. Outlays for International Monetary Programs were $0.8 billion,$0.8 billion above MSR estimates. This difference is explained by valuation changes in theU.S. reserve position in the International Monetary Fund (IMF).