pector@ihuxw.UUCP (Scott W. Pector) (02/09/84)
(This is Part Two of a two-part article.) The following is the detailed summary of the 1983 budget discussed in Part One of my article. Hope it's helpful! Scott Pector (The following is from "Your Federal Income Tax: For Individuals, Publication 17," Department of the Treasury - Internal Revenue Service, Revised 10-83. It is reprinted without permission and I ask the tax gods to forbear their customary altar offerings and just be satisfied with inspiring myself and others interested in this topic to attempt "things yet unattempted in prose or rhyme." I'll still pay my taxes, though.) ----------------------------------------------------------------------------- From the Executive Office of the President Office of Management and Budget Introduction Each January the President is required to submit to the Congress his budget proposal for the upcoming fiscal year. The budget sets forth the President's proposed financial plan of operation for the federal government. The plan includes recommendations for new legislative proposals as well as recommend- ations to change or maintain existing activities. The Congress can change, eliminate, and add programs to the President's budget. The Congress enacts many separate spending and revenue bills. In addition, the Congress enacts resolutions setting ceilings or targets for total spending and a floor for total receipts. Fiscal Year 1983 Budget In fiscal year 1983 (which began on October 1, 1982, and ended on September 30, 1983), federal outlays were $795.9 billion, and receipts were $600.6 billion, leaving a deficit of $195.4 billion. The budget deficit is financed largely by government borrowing from the public. The government borrows from the public by selling bonds and other debt securities to private citizens, banks, and other businesses. Your Government Dollar Income and social insurance taxes are, by far, the largest sources of federal revenues. In 1983, individuals paid $288.9 billion in income taxes and corporations paid $37.0 billion in corporation income taxes. Social security and other insurance and retirement taxes and contributions were $209.0 billion. Excise taxes accounted for $35.3 billion of receipts and the remaining $30.3 billion was accounted for by Federal Reserve deposits, custom duties, estate and gift taxes, and other miscellaneous receipts. Government revenues provide a wide range of public services. The following is a breakdown of how the federal dollar was spent in 1983: National Defense: $210.5 billion. In 1983, the federal government spent 26 cents of each dollar to equip and modernize our armed forces, pay salaries and retirement benefits of military personnel, and for defense-related atomic energy activities. International Affairs: $8.9 billion. About 1 cent of each federal dollar was spent to provide economic, military, and technical assistance to other nations, to fund the administration of foreign affairs and international organizations, and to maintain foreign exchange and information programs abroad. General Science and Space: $7.8 billion. One cent of each dollar was spent to expand scientific knowledge through general science and basic research, including space exploration, and to develop worthwhile uses of space technology. Energy: $4.0 billion. In 1983, 1/2 cent of every dollar was spent to support the development of domestic energy supplies and to promote energy research and information programs. Natural Resources and Environment: $12.7 billion. Programs to control pollu- tion, develop water resources, and to maintain and conserve public lands and recreation areas took 1 1/2 cents of each federal dollar. Agriculture: $22.2 billion. About 3 cents of every dollar was spent to stabilize farm income, encourage agricultural research, for food inspection and conservation services, and for the creation and maintenance of grain reserves. Commerce and Housing Credit: $4.7 billion. Less than 1 cent of each federal dollar was spent to ensure an adequate supply of mortgage credit, provide the federal payment to the Postal Service, and provide oversight and assistance to small businesses. Transportation: $21.2 billion. The federal government provides grants to state and local governments for highways, mass transit, and airports. In addition, the federal government maintains the Coast Guard, regulates federal airways, and provides financial assistance to railroads and shipping. These programs took 3 cents of each dollar in 1983. Community and Regional Development: $7.3 billion. The federal government provides grants and loans to develop urban and rural areas and to provide relief and insurance to victims of natural disasters. These programs took about 1 cent of each dollar in 1983. Education, Training, Employment, and Social Services: $25.7 billion. In 1983, 3 cents of each dollar went for grants to elementary, secondary, and vocational education and aid to college students: training and employment services; and grants to states for social services. Health: $81.2 billion. The federal government finances health care for the aged and poor through medicare and medicaid payments. The government also provides funds for the training of health professionals, medical research, and consumer and worker safety. Outlays for these programs took 10 cents of every budget dollar. Income Security: $280.2 billion. These programs provide benefits in the form of social security, unemployment compensation, retirement, and dis- ability payments that are financed by taxes specifically levied for them. In addition, income support is provided for the needy in the form of cash benefits, food stamps, and housing subsidies. These programs took 35 cents of every budget dollar in 1983. Veterans Benefits and Services: $24.8 billion. Veterans programs provide income to veterans and their families, medical services, education and training, and life insurance programs. Outlays for veterans programs took 3 cents of each dollar in 1983. Administration of Justice: $5.0 billion. Enforcing federal laws, providing detention and correctional facilities for people charged with or convicted of violating federal laws, and providing financial support for state and local government criminal justice systems took less than 1 cent of every federal dollar spent in 1983. General Government: $5.0 billion. The activities of the executive and legislative branches, and managing government finances and internal government services took less than 1 cent of each dollar. General Purpose Fiscal Assistance: $6.3 billion. Federal funds are pro- vided for state and local governments to spend as they see fit with few federal restrictions and requirements. These outlays took about 1 cent of every federal dollar in 1983. Net Interest: $87.0 billion. Interest payments on the public debt less the portion paid to trust funds and other net interest received took 11 cents of each dollar. Undistributed Offsetting Receipts: ($18.6) billion. These offsetting collections are primarily for rents and royalties on the Outer Continental Shelf and Employer share, employee retirement. Notes: 1. Detail may not add to totals due to rounding. 2. Amounts shown are preliminary budget figures. Final figures may be found in the "U.S. Budget in Brief," which may be bought from the Super- intendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402.