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To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®. October 14, 2005 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:
"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:
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