DataPost
Government Spending
Measuring Federal Expenditures
Date last updated: November 9, 2015
Federal Reserve Bank of San Francisco
Economic Education & Outreach
Government Spending – Did You Know?
Federal Government Current Expenditures
($billions, nominal annual values for years shown)
$4,000
Spending
• Like households and firms, the federal
government is also a consumer of goods and
services
$3,487
$3,500
$3,000
$2,500
$1,839
$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)
$1,199
$1,500
$1,000
$532
$500
$0
1980
1990
2000
2010
Source: Bureau of Economic Analysis
Relationship
• The sheer size of federal government spending
makes government expenditures a major
component of U.S. gross domestic product (GDP)
Note: See PowerPoint file for references
DataPost
Nominal government
spending has grown over
time. Its value in 2000 was
more than triple that in 1980.
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FRBSF Economic Education & Outreach
Government Spending by Function
2004 vs. 2014
($billions, nominal annual values)
$4,000
Income Security
$3,500
$1,298
$3,000
Health
National Defense
$2,500
$777
$1,075
$2,000
$1,500
$562
$1,000
$448
$601
General Public
Service
Economic Affairs
Other
$0
$373
$150
$107
$122
$119
$64
$84
2004
Nominal spending on health
increased 91% between
2004 and 2014.
Education
$543
$500
Together, income security
and national defense
account for almost 50% of
all federal spending.
Overall, nominal federal
spending increased 61%
between 2004 and 2014.
2014
Source: Bureau of Economic Analysis
DataPost
www.frbsf.org/education/teacher-resources/datapost
FRBSF Economic Education & Outreach
Federal Government Current Expenditures
Nominal annual values ($billions) through 2014
$4,500
$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
2015
Source: Bureau of Economic Analysis
DataPost
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FRBSF Economic Education & Outreach
What Do You Think?
1. In general, how did spending on education in
2004 compare to 2014? (See slide 3)
2. What was total government spending in 2004? In
2014? (See slide 3)
3. What percentage of federal spending went to
education in 2004? In 2014? (See slide 3)
4. What was the largest category of government
spending in 2004? In 2014? (See slide 3)
DataPost
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FRBSF Economic Education & Outreach