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Federal Reserve Bank of San FranciscoEconomic Education Group

Government SpendingMeasuring Federal Expenditures

Date last updated: May 11, 2015

Nominal government spending has grown over time. Its value in 2000 was more than triple that in 1980.

Government Spending – Did You Know?

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Spending

• Like households and firms, the federal government is also a consumer of goods and services

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)

Relationsh

ip

• The sheer size of federal government spending makes government expenditures a major component of U.S. gross domestic product (GDP)

1980 1990 2000 2010$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$531$1,198

$1,834

$3,477

Source: Bureau of Economic Analysis

Federal Government Current Expenditures($billions, nominal annual values for years shown)

Note: See PowerPoint file for references

http://www.frbsf.org/education/teacher-resources/datapost FRBSF Economic Education Group

37986 41639$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$79$117$58 $103

$119 $154$360

$519

$410

$618$520

$978$748

$1,274 Income Security

Health

National Defense

General Public Service

Economic Affairs

Education

Other

Government Spending by Function2003 vs. 2013

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Source: Bureau of Economic Analysis

Together, income security and national defense

account for over 50% of all federal spending.

Nominal spending on health increased 88% between

2003 and 2013.

Overall, nominal federal spending increased 64% between 2003 and 2013.

($billions, nominal annual values)

http://www.frbsf.org/education/teacher-resources/datapost FRBSF Economic Education Group

Federal Government Current ExpendituresNominal annual values ($billions) through 2014

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

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Source: Bureau of Economic Analysis

http://www.frbsf.org/education/teacher-resources/datapost FRBSF Economic Education Group

What Do You Think?

1. In general, how did spending on education in 2003 compare to 2013? (See slide 3)

2. What was total government spending in 2003? In 2013? (See slide 3)

3. What percentage of federal spending went to education in 2003? In 2013? (See slide 3)

4. What was the largest category of government spending in 2003? In 2013? (See slide 3)

DataPost http://www.frbsf.org/education/teacher-resources/datapost FRBSF Economic Education Group