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Government Spending
Measuring Federal Expenditures
Date last updated: October 5, 2012
Federal Reserve Bank of San Francisco
Economic Education Group
Government Spending– Did You Know?
Federal Government Current Expenditures
($billions, nominal annual values for years shown)
$3,703
$4,000
Spending
• Like households and firms, the federal
government is also a consumer of goods and
services
$3,500
$3,000
$1,872
$2,500
$2,000
Facts
• The BEA reports nominal values of federal
government expenditures on an annual and
quarterly basis
• The measure of government spending shown to
the right is part of NIPA (National Income and
Product Accounts) Table 3.16, which is published
by the Bureau of Economic Analysis (BEA)
$1,500
$1,000
$1,259
$590
$500
$0
1980
1990
2000
2010
Source: Bureau of Economic Analysis
Relationship
• The sheer size of federal government spending
makes government expenditures a major
component of U.S. gross domestic product (GDP)
Note: See PowerPoint file for references
DataPost
Nominal government
spending has grown over
time. Its value in 2000 was
nearly triple that in 1980.
http://www.frbsf.org/education/teachers/datapost/index.html
FRBSF Economic Education Group
Government Spending by Function
2000 vs. 2011
($billions, nominal annual values)
$4,000
Income Security
$3,500
$1,233
Health
$3,000
Together, income security and
national defense account for
over 50% of all federal
spending.
National Defense
$2,500
$940
$2,000
$607
$1,500
$717
$1,000
$0
Nominal spending on health
increased 134% between
2000 and 2011.
Economic Affairs
$402
$500
General Public
Service
$325
$329
$105
$42
$63
2000
Education
$442
$166
$133
$127
Other
Overall, nominal federal
spending increased 101%
between 2000 and 2011.
2011
Source: Bureau of Economic Analysis
DataPost
http://www.frbsf.org/education/teachers/datapost/index.html
FRBSF Economic Education Group
Federal Government Current Expenditures
Nominal annual values ($billions) through 2011
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
Source: Bureau of Economic Analysis
DataPost
http://www.frbsf.org/education/teachers/datapost/index.html
FRBSF Economic Education Group
What Do You Think?
1. In general, how did spending on education in
2000 compare to 2011? (See slide 3)
2. What was total government spending in 2000? In
2011? (See slide 3)
3. What percentage of federal spending went to
education in 2000? In 2011? (See slide 3)
4. What was the largest category of government
spending in 2000? In 2011? (See slide 3)
DataPost
http://www.frbsf.org/education/teachers/datapost/index.html
FRBSF Economic Education Group