U.S. Treasury Secretary Tim Geithner and White House Office of Management and Budget (OMB) Director Peter R. Orszag today released details of the final Fiscal Year 2009 budget results. Budget Results for Fiscal Year 2009 A summary of the FY2009 data, released as part of the September 2009 Monthly Treasury Statement of Receipts and Outlays of the United States Government, shows that the federal deficit dropped by $162 billion from a projected $1,580 billion in the August Mid-Session Review (MSR) to the final figure of $1,417 billion.
Summary of Fiscal Year 2009 Final Data
|Table 1. Total Receipts, Outlays, and Deficit (in billions of dollars)
|May 2009 Budget
|August 2009 Mid-Session Review
Fiscal Year 2009 Receipts
Total receipts for FY2009 were $2,105 billion, $31 billion higher than the MSR estimate of $2,074 billion. Higher-than-expected collections of individual income taxes and corporation income taxes accounted for most of the net increase in receipts relative to the MSR. Table 2 displays actual receipts and estimates from the Budget and MSR by source.
Individual income taxes were $915 billion, $12 billion higher than the MSR estimate. Higher-than-estimated non-withheld payments accounted for $5 billion of the increase in individual income taxes relative to the MSR.
Corporation income taxes were $138 billion, $17 billion higher than the MSR estimate. Inaction on the Administration’s proposal to expand net operating loss carrybacks increased corporation income tax payments $28 billion relative to the MSR.
Social insurance and retirement receipts were $891 billion, the same as the MSR estimate, although there were offsetting differences among the sources of this category of receipts. A $2 billion increase in employment and general retirement receipts relative to the MSR was attributable to the lower-than-expected reallocation of withheld tax payments from the Social Security and Medicare Trust Funds to individual income taxes, as described above.
Excise taxes were $62 billion, $3 billion lower than the MSR estimate. This decline was attributable to lower-than-expected demand for taxed goods.
Estate and gift taxes were $23 billion, $3 billion lower than the MSR estimate. This decline was in large part attributable to a decline in the value of taxable estates relative to the MSR estimate.
Customs duties were $22 billion, within $100 million of the MSR estimate.
Miscellaneous receipts were $52 billion, $8 billion higher than the MSR estimate. Higher-than-expected deposits of earnings by the Federal Reserve System, attributable to higher-than-expected returns on its investment portfolio and its foreign currency holdings, accounted for $7 billion of the increase in miscellaneous receipts relative to the MSR estimate.
Total Recovery Act outlays in FY2009 were $113 billion, with the largest components in the Department of Health and Human Services (HHS) to cover increased Medicaid payments, the Department of Labor to provide higher unemployment benefits, and the Department of Education for payments to states from the State Fiscal Stabilization Fund and for increases in Pell grants.
Department of Agriculture — Outlays for the Department of Agriculture were $114 billion, $6.4 billion below the MSR estimate. Commodity Credit Corporation (CCC) actual outlays were about $2 billion less than MSR estimates. This occurred because fewer producers than anticipated took out commodity loans and more paid them back before the end of the fiscal year; dairy prices increased late in the fiscal year.
Department of Commerce — Department of Commerce outlays were $11 billion in FY2009, $1.1 billion below the MSR estimate. Over half of this difference ($558 million) related to the National Telecommunications and Information Administration, which administers the digital-to-analog converter box coupon program and public safety interoperable communications grants; both programs spent less in FY2009 than anticipated.
Department of Defense — Outlays for the Department of Defense (DOD) were $637 billion, $4.4 billion, or 0.7 percent, less than estimated in the MSR. There is no single explanation for the differences between projected and actual outlays, but several examples illustrate the types of variance seen in accounts. For example, DOD spent $1.5 billion less than projected for the Air Force to purchase.
Department of Education — Outlays for the Department of Education were $53 billion, $3.9 billion higher than the MSR estimate. Spending for the new State Fiscal Stabilization Fund, created by the Recovery Act, was $7.1 billion higher than expected, due to accelerated State drawdowns of this funding.
Department of Energy — Outlays for the Department of Energy were $24 billion, $3.5 billion lower than the MSR estimate. Outlays for the Energy Efficiency and Renewable Energy account were $1.34 billion below MSR estimates due to slower-than-expected disbursement of Recovery Act funds, particularly for the Weatherization Assistance Program.
Department of Health and Human Services — Outlays for the Department of Health and Human Services were $796 billion, $17.6 billion below the MSR estimate. A little less than half of the total difference was in outlays for Medicaid, which were $7.6 billion (2.9 percent) lower than MSR estimates, due to slower-than-expected growth in State Medicaid spending.
Department of Homeland Security — Outlays for the Department of Homeland Security (DHS) were $52 billion in FY2009, $1.8 billion more than the MSR estimate. The difference was attributable primarily to a decrease in fee collections and higher-than-expected outlays from a number of agencies within the Department. DHS fees were below the MSR estimate by approximately $700 million.
Department of Housing and Urban Development — The Department of Housing and Urban Development’s total FY2009 outlays were $61 billion, $1.8 billion below the MSR estimate. Most of this difference ($0.9 billion) was due to receipts generated by Federal Housing Administration (FHA) single-family and Government National Mortgage Association (GNMA) loan guarantee programs with negative subsidy rates. The loan volume of these programs surged as private mortgage insurance largely vacated the housing finance market.
Department of Justice — FY2009 outlays for the Department of Justice (DOJ) were $28 billion, $1.4 billion below the MSR estimate. DOJ’s actual outlays for State and local law enforcement assistance in the Office of Justice Programs were $1.0 billion lower due to slower-than-expected outlays of the Recovery Act grantee funds. The Recovery Act funds have been fully obligated to state and local law enforcement programs, but the grantees are not spending the funds as quickly as had been projected.
Department of Transportation — Outlays for the Department of Transportation were $73 billion, $7.5 billion lower than projected in the MSR. Actual outlays for DOT Recovery Act programs were $4.5 billion less than estimated, with the difference primarily in highway, transit, and rail programs. This was largely because of the time and steps required by project sponsors to start work on a new set of previously unplanned projects.
Department of the Treasury — Outlays for the Department of Treasury totaled $703 billion, $98.4 billion lower than the MSR estimate. Major differences from the MSR estimate include the following:
TARP had net outlays of $153.9 billion for debt, equity, guarantee, and housing programs, $82.3 billion lower than the MSR estimate, most of which was due to the timing of disbursements that were expected to occur in FY2009 but are now assumed to shift to FY2010.
Under the Government Sponsored Enterprise (GSE) Preferred Stock Purchase Agreements program, the Department of the Treasury’s capital payments to Fannie Mae and Freddie Mac totaled $95.6 billion in FY2009, $10.3 billion less than estimated in the MSR, due to better-than-expected financial results at the GSEs.
Net outlays for two Treasury accounts related to exchange stabilization were $2.6 billion below the MSR estimate – the Exchange Stabilization Fund, which Treasury uses at times to maintain a stable international financial system, and its child account, the Exchange Stabilization Fund Money Market Mutual Fund Guaranty Facility.
Outlays for refundable tax credits and related programs that are part of the Internal Revenue Code and administered by Treasury and the Internal Revenue Service, such as the child tax credit, were $6.6 billion lower than estimated in the MSR. The largest difference was for a new Recovery Act program of cash assistance to States in lieu of low-income housing credits, which outlayed $3.1 billion less than estimated in the MSR. While these funds were obligated in FY2009, they are now expected to be drawn down and outlayed in FYs 2010 and 2011.
Interest on the public debt, which includes interest paid to government accounts as well as interest paid to the public, was $383.4 billion, $11.1 billion lower than the MSR estimate. Interest paid to government accounts was $14.0 billion lower than projected, due primarily to lower interest rates, including $4.9 billion in lower interest paid to trust funds and $8.0 billion in lower interest paid to the DOD Medicare-Eligible Retiree Health Care Fund.
An additional $14.4 billion of the difference in Treasury outlays was due to intragovernmental interest transactions with credit financing accounts, including $30.1 billion lower-than-projected interest paid to credit financing accounts and $44.6 billion lower-than-anticipated offsetting receipts of interest from credit financing accounts.
Corps of Engineers — Outlays for the Army Corps of Engineers civil works program were $7 billion, $5.8 billion lower than the MSR estimate. Much of the difference was due to changes in construction project schedules made after the MSR and increases in offsetting collections for work that the Corps performed on behalf of other Federal agencies under its reimbursable program.
General Services Administration — GSA’s total outlays were $0.3 billion, $1.1 billion less than what was projected in the MSR. $890 million was associated with the Federal Buildings Fund (FBF) and the Acquisition Services Fund. For the Acquisition Services Fund, actual revenue was $251 million higher than anticipated. For the FBF, actual revenue was more than $200 million higher than anticipated.
Office of Personnel Management — Outlays for the Office of Personnel Management were $72 billion, $4.1 billion higher than the MSR estimate. OPM outlays were higher due to legislative relief provided to the US Postal Service in the 2010 Continuing Resolution, which allowed that agency to make only $1.4 billion of the expected $5.4 billion end-of-year payment for USPS retiree health.
Other Defense Civil Programs — Outlays for Other Defense Civil programs were $57 billion, $8.8 billion more than the MSR estimate. Most of this difference was due to lower-than-projected earnings on investments of the Medicare-Eligible Retiree Health Care Fund (MERHCF), which are offset against gross outlays to calculate net outlays. These lower-than-projected earnings were largely due to a less-than-expected return on the Treasury Inflation-Protected Securities (TIPS) investments in the MERHCF portfolio.
Federal Deposit Insurance Corporation — The Federal Deposit Insurance Corporation (FDIC) had net actual outlays of $6.7 billion, $5.3 billion above the MSR estimate. The difference was almost entirely due to greater-than-expected payments related to the resolution of failed banks.
National Credit Union Administration — Outlays for the National Credit Union Administration (NCUA) were $16 billion, $1.5 billion lower than the MSR estimate, predominantly due to one unanticipated transaction. The Credit Liquidity Facility transferred $1.75 billion from the U.S. Central Federal Credit Union to the U.S. Treasury, resulting in an unexpected net in-flow of cash in August 2009.
United States Postal Service — The United States Postal Service (USPS) had net actual outlays of $0.4 billion, $3.5 billion lower than the MSR estimate. This difference was almost entirely due to the recent legislated change in the statutorily mandated USPS payment to the Office of Personnel Management for retiree health benefits liabilities.
Undistributed Offsetting Receipts — Undistributed offsetting receipts were $274 billion in FY2009, $3.7 billion lower than the MSR estimate. Interest received by trust funds was $181.6 billion, $4.9 billion lower than the MSR estimate, due primarily to lower-than-estimated interest earnings for the Civil Service Retirement and Disability Fund.
Click On Links:
Obama Supporting Anti-Taliban Militias
Obama Facing Debt Payments, $1.6 TRILLION Due By March
Millions To Repay Part Of Obama Tax Credit
Obama’s Approval Rating
Dollar Losing Value Under Obama
Obama Bank Overhaul
Obama’s 9 Trillion Dollar Deficit
Obama GM Bankruptcy
Obama Says ‘WE’RE OUT OF MONEY’
Obama $3.6 Trillion Budget Proposal
Where’s The Money !
U.S. Dollar Dropping Under Obama
Obama Promises One Year Later