-, • -~- ,,,, ··--- ;·• ,I> ... - .. , 

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~l~ Consolidated Finftncial , 

Statements of the 

United States Government 

Fiscal Year 1978 

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.PROTOTYPE 
Statement of the Fiscal Assistant 

Secretary of the Treasury 

The Treasury Department is continuing its efforts to improve governmental accounting and 

financial reporting with the publication of this prototype financial report. Like its predecessors, 

the report is part of an experimental effort to expand the use of accrual accounting concepts 

in government and stimulate improvements in financial reporting. 

There is increasing evidence that the publication of these financial statements has focused 

attention on the need for improved accounting and financial reporting at all levels of government. 

For example, several States, counties, and cities have begun developing and publishing simplified, comprehensive financial reports. In addition, the Committee on State and Local Government Accounting of the American Institute of Certified Public Accountants is conducting an 

experimental financial reporting project. St.ate and local governments are being urged to prepare 

consolidated financial statements for a recent fiscal period that present the cost of government 

services on the accrual basis. 

In addition, several organizations have taken an active role in the research and development 

of a conceptual framework that will encompass State and local governmental units. These include 

the National Council on Governmental Accounting and the Financial Accounting Standards 

Board. Additionally, the U.S. General Accounting Office has announced a project to develop a 

conceptual framework for accounting and financial reporting in the Federal Government. This 

project is described in more detail in the Statement of the U.S. General Accounting Office. 

Over the past year the Treasury and the U.S. General Accounting Office have continued 

to review and analyze alternative financial statement formats, as the preferred type and content 

of public sector statements remain unresolved issues. In an effort to encourage additional 

discussion on the subject, a second experimental set of summary-level statements has been 

included in this report. The significant feature of these statements is the focus on selected current 

assets and liabilities of the Government. The excess of current liabilities over current assets is 

defined by identifying the approximate amount of liabilities incurred that will mature over the 

next year and the current assets presently available to liquidate them. The statements also take 

into account characteristics considered unique to the Government, the size and long-term nature 

of its operations. 

The Comptroller General's lnteragency Advisory Committee on Consolidated Financial 

Statements is studying a number of technical issues. The Committee is comprised of representatives of agencies that have responsibility for the management of major Federal programs 

involving significant amounts of resources. At present, five task groups are still in operation. 

Since the last prototype report was issued, the following are particularly noteworthy: 

• The accrual of taxes task group completed an analysis of the accrual processes for 

corporate taxes and recommended changes to the sources and procedures for calculating the data required in these financial statements. The recommendations were 

adopted and have resulted in an improvement of data for this year's report. 

• The allowance for losses on accounts and loans rocoiva.blo tack group ho.c conducted 

a survey of agency collection experience and the results are being assessed. In a related 

context, the General Accounting Office issued a report on the Government's debt collection procedures recommending the need for accounting and reporting improvements. 

This was followed by an Office of Management and Budget memorandum to agencies. 

Treasury issued interim reporting requirements to gather better data on Federal collection 

efforts. In addition, the President's Management Improvement Council has been asked 

to address this issue and 0MB is chairing an interagency project to improve debt 

collection procedures in Federal agencies. 
• The Federal employee retirement systems task group objective has been accelerated 

by the enactment of Public Law 95-595, dated November 4, 1978. This Public Law 

requires standards for an annual report for each of the Federal Government pension 

plans with the report form and financial data to be prescribed by the President in 

consultation with the Comptroller General. The requirement for an annual report -is 

effective with plan years beginning after September 30, 1978. This financial data should 

be available for the next prototype consolidated financial statement. 

As indicated in previous reports, these financial statements are not intended to compete 

with the budget process. The President's budget document submitted to the Congress is the 

Government's primary tool for planning and controlling the allocation of economic resources. 

Also, this report is not and should not be regarded as the Government's official report on its 

financial condition. A significant amount of additional research, discussion, and debate is necessary before reports such as this prototype can be considered to be prepared on the basis of 

generally accepted accounting principles. 

Re.ader reactions and comments on this prototype report are welcomed. 

Dated: January 18, 1980 

2 

Qt~Y~ 

Paul H. Taylor 

Fiscal Assistant Secretary 

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Statement of the United States General 

Accounting Office 

This statement, like its predecessors, is preliminary in nature and is intended to provide 

a broad focus on information that is useful in assessing the financial activities of the Government. 

It is hoped that these financial statements will enhance public understanding about the economic 

resources of the Government, the claims to the resources, and the effects of transactions, 

events, and circumstances that change resources and claims to them. 

Over the past year, significant progress was made to resolve various technical problems 

with the data. The Statement of the Fiscal Assistant Secretary of the Treasury highlights various 

activities of the Comptroller General's lnteragency Advisory Committee to improve financial 

accounting and reporting. 

Currently, the General Accounting Office has a project underway to develop a conceptual 

framework for financial accounting and reporting in the Federal Government. This effort is aimed 

at establishing the objectives and concepts to be used in developing standards of financial 

accounting and reporting. We are confident that this project will complement the work being 

done by the Department of the Treasury and the lnteragency Advisory Committee and will 

enhance t"e public's -confidence in governmental accounting and reporting. 

Much remains to be done before satisfactory statements can be prepared. In this respect, 

the General Accoμnting Office continues to support these statements, because we believe that 

consolidated information on Government financial activities can provide a broader perspective 

on the financial situation of the Government. Moreover, we believe that this project will encourage 

more comprehensive financial reporting by government entities at all levels. 

As with prior prototype reports, we have not audited these statements. Accordingly, we 

are not expressing an opinion on whether they fairly present the financial position and results 

of operations for the Federal Government for the fiscal year ended September 30, 1978. 

Dated: January 18, 1980 

D. L. Scantlebury 

Director, Division of Financial and 

General Management Studies 

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Alternative 

Financial Statement Formats 
Introduction 

After the publication of Treasury's third prototype report in November 1978, discussion 

continued on the need for further study, experimentation, and improvement in governmental 

summary-level financial statements. This issue is· being considered by Treasury and ttie U.S. 

General Accounting Office apart from the more technical accounting matters currently under 

study by the Comptroller General's advisory committee. Treasury's support for the need to 

continue experimentation is based on the fact that no consensus has emerged on financial 

statement formats for public sector organizations. Therefore, additional study and analysis is 

required. 

Over the· past year several alternative financial statement formats were developed and 

reviewed. These efforts led to the selection of an additional format for inclusion in this year's 

prototype report. The alternative statement approach was chosen for several reasons: 

• The concepts for governmental summary-level statements remain in the discussion and 

debate stage. 

• The nature of governmental operations may require alternative financial statements. 

• Alternative formats in a prototype report allow the report reader to compare and react 

to the usefulness of the financial data. 

The alternative statements, which are presented directly following this discussion, are 

based on the same financial data used in the remainder of this report. The Consolidated Statement 

of Selected Current Assets and Liabilities is a measure of short-term liquidity and provides a 

basis for assessing near-term financing requirements on the statement date. This statement 

also can be associated with future Government spending requirements. The financial data 

provided by this link may be a practical basis from which to evaluate the additional financing 

requirements that will result from program activities approved for future periods. Since such 

programs involve future periods of time, the financial results of their activities are not reflected 

in historical data. Reviewing the statement over several cycles of operations, in conjunction with 

proposed or approved programs for periods in the immediate future, can show the extent to 

which borrowings and operating revenues will be required. 

The Consolidated Statements of Other Assets and Other Liabilities focus on the size 

and long-term nature of the Government's operations. The characteristics of many of the Government's assets and liabilities are uniquely associated with the purpose and structure of government. For example, it has been argued that the national debt differs in its essential nature 

from the liabilities of other organizations; in particular, there is no expectation that the national 

debt is a meaningful claim on assets listed on an accounting balance sheet. On the other hand, 

significant economic assets are controlled by Government. They form a large part of our national 

wealth. Some are resources that must be maintained for a given level of service; therefore, the 

use of these assets does affect the long-term financing requirements of the Government. Any 

review of the other assets and other liabilities of the Government must take into consideration 

the scale of operations as it relates to the characteristics of the Government in the total economy. 

The Consolidated Statement of Changes in the Operating Cash Balance identifies the 

relationship between the operating cash balance, borrowing from the public, and the annual 

budget results. This additional statement, as well as the three statements described above, must 

be considered as an integral part of the group of statements presented in this report. These 

statements include: the Consolidated Statement of Operations which compares the revenues 

and expenses that can be attributed to the current reporting period; the Consolidated Statement 

of Changes in Financial Position which identifies the relationship of resource flows to the change 

in position of cash and monetary reserves; and the Notes to Financial Statements which provide 

more detailed disclosure on certain financial data in the statements. 

7 
8 

United States Government · 

Consolidated Statement of Selected Current Assets and Liabilities 

as of September 30, 1978 and 1977 

[In billions] 

Current Assets 

(What the Government owns--<esources that approximate amounts 

available to pay liabilities or to provide public services in the next year) 

1978 

Cash and monetary reserves 

Operating cash in the Treasury ...................... . $22.4 

International monetary reserves ..................... . 18.8 

Other cash ........................................ . 5.0 

46.2 

Receivables (net of allowances) 

Accounts receivable ............................... . 7.7 

Accrued·taxes receivable ......................... , .. . 24.0 

Loans receivable .................................. . 27.4 

59.1 ---

Total: Current assets ........................... . 105.3 

Current Liabilities 

(What the Government owes-amounts incurred in the 

past that will require cash or other resources in the next year) 

Accounts payable .................................... . 

Borrowing from the public ............................. . 

Accrued pension, retirement, and 

disability plans ......... : .......................... . 

Total: Current liabilities ......................... . 

Excess of current liabilities over current assets .......... . 

65.8 

236.7 

151.3 

453.8 

$348.5 

1977 

$19.1 

18.9 

5.4 

43.4 

6.6 

13.5 

27.2 

47.3 

90.7 

55.3 ---

227.1 

134.3 

416.7 

$326.0 
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United States Government 

Consolidated Statement of Other Assets 

as of September 30, 1978 and 1977 

(In billions) 

(Resources that generally would not be liquidated to finance 

operations in the next year such as loans with terms over 40 years) 

1978 1977 

Advances and prepayments ......... .- ................ . 

Loans receivable (net of allowances) ................... . 

Inventories (at cost) 

Goods for sale ...................... · .............. . 

Work in process .................................... . 

Raw materials ..................................... . 

Materials and supplies for Government use ........... . 

Stockpiled materials and commodities .............. · .. . 

Property and equipment 

Land .............. '. .............................. . 

Buildings, structures, and facilities ................... . 

Military hardware .................................. . 

Equipment ......................................... . 

Construction in progress ............................ . 

Other ........... • ................................. . 

Accumulated depreciation .......................... , 

Deferred charges and other assets .................... . 

Total: Other assets ............................ . 

$5.3 

92.5 

16.1 

.9 

2.0 

35.2 

27.6 

81.8 

9.1 

110.2 

152.3 

45.9 

21.1 

1.7 

340.3 

(170.0) 

170.3 

24.4 

$374.3 

$7.5 

72.3 

13.9 

.9 

1.8 

33.9 

26.4 

76.9 

7.7 

103.8 

143.3 

48.1 

19.2 

1.6 

323.7 

(159.3) 

164.4 

23.5 

$344.6 

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United States Government 

Consolidated Statement of Other Liabilities 

as of September 30, 1978 and 1977 

[In billions] 

(Amounts owed that will not fall due in the next year 

such as social security estimated for a 75-year period) 

Unearned revenue ................................... . 

Borrowing from the public .................. : ......... . 

Accrued pension, retirement, and disability plans 

Military personnel .................................. . 

Civilian employees ................................. . 

Social security ................. : .................. . 

Veterans compensation ............................ . 

Federal employees compensation ... : ............... . 

Loss reserves for guarantee and 

insurance programs .............................. . 

Other liabilities ...................................... . 

1978 

$11.3 

370.0 

135.5 

159.6 

802.6 

143.9 

8.2 

1,249.8 

3.2 

45.2 

Total: Other liabilities ........................... . $1,679.5 

1977 

$10.1 

321.5 

119.4 

142.8 

690.5 

116.7 

7.4 

1,076.8 

2.9 

45.2 

$1,456.5 

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United States Governm,ent 

Consolidated Statement of Changes in the 

Operating Cash Balance 

for the Years Ended September 30, 1978 and 1977 

[In billions] 

Operating cash beginning of period .................... . 

Sources of cash: 

Budget receipts ................................. . 

Net borrowing from the public1 ...•..••..••••....... 

Other means of financing2 •• : ....•..••••••••••••••• 

Total ....................................... . 

Uses of cash: 

Budget outlays .................................. . 

Off-budget outlays ............................... . 

Total ....................................... . 

Operating cash end of period ......................... . 

1 Reconciliation of net borrowing from the public: 

1978 

$19.1 

402.0 

59.1 

3.3 

483.5 

450.8 

10.3 

461.1 

--'• 

$22.4 

1977 

$17.4 

357.8 

53.5 

1.9 

430.6 

402.8 

8.7 

411.5 

$19.1 

Current Other Total 

Balance as of 9/30/78 . . . . . . . . . . . . . . . . . $236.7 $370.0 $606.7 

Balance as of 9/30/77 . . . . . . . . . . . . . . . . . 227.1 321.5 548.6. 

Net borrowing per Federal Debt Maturity (Sch: V) ........ .... ........ .... ................. 58.1 · 

Adjustment for deferred discounts and premiums, 

and certain intergovernmental transactions .. ........................ ................ ........ 1.0 

Net borrowing from the public .................................................................. .$ 59.1 

2 Includes the net change in: Special drawing rights, o,ther assets, accrued interest 

payable to the public, checks outstanding, other liabilities, and other transactions not 

applied to surplus or deficit. 

11 
Consolidated Financial Statements 

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United States Government Consolidated Statement 

of Financial Position as of September 30, 1978 and 1977 

[In biilions] 

Assets 

(What the Government owns-resources that are available 

to pay liabilities or to provide public seNices in the future) 

1978 

Cash and monetary reserves 

Operating cash in the Treasury ...................... . $22.4 

International monetary reserves (Note 2) ............. . 18.8 

Other cash ................................. .' ... · ... . 5.0 

46.2 

Receivables (net of allowances) 

Accounts receivable ............................... . 7.7 

Accrued taxes receivable (Note 3) ................... . 24.0 

Loans receivable (Note 4) .......................... . 119.9 

Advances and prepayments ........................ . 5.3 

156.9 

Inventories (at cost) (Note 5) 

Goods for sale .................................... . 1.£>.1 

Work in process .................. '................. ·. .9 

Raw materials ..................................... . 2.0 

Materials and supplies for Government use ....... · .... . 35.2 

Stockpiled materials and commodities ................ . 27.6 

81.8 

Property and equipment (at cost) 

Land (Note 6) .. , ................................... . 9.1 

Buildings, structures, and facilities (Note 7) ........... . 110.2 

Military hardware (Note 8) .......................... . 152.3 

Equipment (Note 8) ................................ . 45.9 

Construction in progress ............................ . 21.1 

Other ................. _ ........................... . 1.7 

340.3 

Accumulated depreciation (Note 9) .................. . (170.0) 

170.3 

Deferred charges and other assets .................... . 24.4 

Total ......................................... . $479.6 

The accompanying notes-are an integral part of this statement. 

1977 

$19.1 

18.9 

5.4 

43.4 

6.6 

13.5 

99.5 

7.5 

127.1 

13.9 

.9 

1.8 

33.9 

26.4 

76.9 

7.7 

103.8 

143.3 

48.1 

19.2 

1.6 

323.7 

(159.3) 

164.4 

23.5 

$435.3 

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United States Government Consolidated Statement 

of Financial Position as of September 30, 1978 and 1977 

[In billions) 

Liabilities 

(What the Government owes-liabilities incurred in the 

past that will require cash or other resources in the future) 

1978 1977 

Accounts payable .................................... . 

Unearned revenue ................................... . 

Borrowing from the public (Note 10) ................... . 

Accrued pension, retirement, and disability 

plans (Note 11) 

Military personnel .................................. . 

Civilian employees ................................. . 

Social security .................................... . 

Veterans compensation ............................ . 

Federal ~mployees compensation ................... . 

Loss reserves for guarantee and / 

insurance programs (Note 12) ..................... . 

Other liabilities ...................................... . 

Total ......................................... . 

Accumulated Position 

Accumulated position beginning of period .............. . 

Prior period adjustment (Note 13) ..................... . 

Restated accumulated position beginning of period· .... : .. 

Current period results ................................ . 

Current noncash provision for social 

security (Note 14) ............................... . 

Accumulated position end of period .................... . 

Total ......................................... ·. 

The accompanying notes are an integral part of this statement. 

$65.8 

11.3 

606.7 

147.4 

173.6 

928.0 

143.9 

8.2 

1,401.1 

3.2 

45.2 

$2,133.3 

(1,450.4) 

12.5 

(1,437.9) 

(90.4) 

(125.4) 

(1,653.7) 

$479.6 

$55.3 

.10.1 

548.6 

128.9 

155.5 

802.6 

116.7 

7.4 

1,211.1 

2.9 

45.2 

$1,873.2 

(1,225.8) 

14.2 

(1,211.6) 

(54.5) 

(171.8) 

(1,437.9) 

$435.3 

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United States Government Consolidated Statement of Operations for 

the Years Ended September 30, 1978 and 1977 

[In billions] 

1978 1977 

Revenues 

Levied under the Government's sovereign power 

Individual income taxes .......................... . $181.0 $157.6 

Corporate income taxes .......................... . 70.5 54.3 

Social insurance taxes and contributions ........... . 123.4 108.7 

Excise taxes .................................... . 18.4 17.5 

Estate and gift taxes ............................. . 5.3 7.3 

Customs duties .................................. . 6.5 5.2 

Miscellaneous ................................... . 11.3 10.4 

416.4 361.0 

Earned through Government business-type operations 

Sale of goods and services ....................... . 18.7 18.9 

Interest ......................................... . 21.8 18.7 

Other .......................................... . 23.4 19.8 

63.9 57.4 

Total ......................................... . 480.3 418.4 

Expenses by function (see also summary of expenses 

by object and agency) 

Administration of justice ............................ . 3.7 3.4 

Agriculture ........................................ . 7.2 4.9 

Commerce and housing credit ...................... . 2.4 1.2 

Community and regional development ............... . 11.2 6.4 

Education, training, employment, and social services .. . 24.7 18.5 

Energy ...................................... • • • • • • 6.7 4.7 

General government ............................... . 11.8 10.2 

General purpose fiscal assista11ce ................... . 18.7 15.7 

General science, space, and technology ............. . 4.4 4.2 

Health ............................................ . 51.7 42.1 

Income security 

Military personnel ................................ . 27.7 17.8 

Civilian employees ............................... . 28.7 25.0 

Social insurance ................................. . 105.5 98.6 

Veterans compensation ........................... . 36.9 12.5 

Other .......................................... . 35.4 37.3 

Interest ........................................... . 48.7 41.9 

International affairs ................................ . 17.7 16.0 

National defense .................................. . 91.2 80.5 

Natural resources and environment .................. . 12.6 11.0 

. Transportation ..................................... . 14.8 13.3 

Veterans benefits and services ...................... . 9.0 7.7 

Total ......................................... . 570.7 472.9 

Current period results ........................ . $(90.4) $(54.5) 

The accompanying notes are an integral part of this statement. 
Summary of Expenses by Object and Agency 

1978 1977 

Expenses by object 

Salaries and employee benefits ..................... . $81.9 $73.9 

Vendor services and supplies ....................... . 87.9 65.7 

Depreciation ...................................... . 19.4 18.6 

Pensions, health and life insurance .................. . 94.4 57.9 

Casualty insurance and indemnities .................. . 114.9 100.9 

Grants, subsidies, and contributions ................. . 123.5 114.0 

Interest ........................................... . 48.7 41.9 

Total ......................................... . 570.7 472.9 --

Expenses by agency . . 

Legislative branch .................. : .............. . 1 .1 1.0 

Judicial branch .................................... . .4 .4 

Executive branch 

Office of the President ........................... . 13.7 12.9 

Departments 

Agriculture .................................... . 40.4 26.5 

Commerce .................................... . 5.6 2.9 

Defense ....................... : ..... · ......... . 114.1 95.1 

Energy ....................................... . 5.1 5.1 

Health, Education, and Welfare ................. . 172.0 149.8 

Housing and Urban Development ................ . 12.3 12.1 

Interior ....................................... . 4.9 3.7 

Justice .......................... : ............ . 3.2 2.7 

Labor ........................................ . 25.0 23.8 

State ......................................... . 1.5 1.2 

Transportation ................... : ............. . 14.4 12.9 

Treasury: Interest ............................ . 48.7 41.9 

Other ............... · ............... . 12.8 13.4 

Independent agencies ............................ . 95.5 67.5 

Total ......................................... . $570.7 $472.9 --

The accompanying notes are an integral part of this statement. 

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United States Government Consolidated Statement 

of Changes in Financial Position · 

for the Years Ended September 30, 1978 and 1977 

[In billions] 

1978 

Cash and monetary reserves beginning of period ........ . $43.4 

Sources of funds: 

Taxes and other levies ................ ; ............ . 416.4 

Other Government operations .......... , ............ . 63.9 

Sale of property and equipment ........ : ............ . 

Net increase in borrowing ............. : ............ . 

17.4 

58.1 

Depreciation ......................... '. ............ . 19.4 

Provision for accrued pension, retirement, 

and disability plans ................. l ............ . 64.6 

Provision for loss reserves for guarantee 

and insurance programs ............. : ............ . .3 

Increase in liabilities .................. : ............ . 11.7 

Total ... " ......................... 1 •••• • • • • • • • • • 695.2 

Uses of funds: 

Spending on Government programs ................. . I 570.7 

Purchase of property and equipment ................. . 42.7 

Increase in receivables ................ : ............ . 29.8 

Increase in inventories ............................. . 4.9 

Increase in deferred charges and other assets ........ . .9 

Total ............................ : ............ . 649.0 

Cash and monetary reserves end of period ............. . $46.2 

Tho accompanying notes aro an int9gral part of thiG Gtatoment. 

1977 

$41.6 

361.0 

57.4 

13.0 

53.7 

18.6 

28.8 

.1 

4.7 

578.9 

472.9 

48.1 

11.4 

(.2) 

3.3 

535.5 

$43.4 

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Introductory Statement to Notes 

The Federal consolidated financial statements have been prepared to serve the common 

needs of a variety of users with emphasis on the general public. As is true of accounting in other 

types of entities, governmental accounting exists for the purpose of providing complete and 

accurate financial information in a meaningful format and on a timely basis to those responsible 

for and concerned with the operations of government. This information can help to promote a 

better understanding of the role of the Government's financial operations in the economy. 

The Advisory Committee on Federal Consolidated Financial Statements, which was chartered from March 1976 to March 1978, identified many of the major conceptual and practical 

problems associated with the development of the financial statements and schedules. On July 

6, 1977, the Comptroller General assumed chairmanship of an interagency committee whose 

role is to study the problems associated with implementing the recommendations resulting from 

the work of the advisory committee. A summary of these efforts is presented below. 

• Accrual-of taxes. -Presently Federal tax revenues are not accrued; rather, they are 

recognized and reported on a cash basis. The objective is to develop a method for 

accruing taxes that takes into account taxes earned, refunds, and uncollectable amounts. 

A methodology for corporate taxes has been developed and used to prepare this year's 

accrual. Existing information in. two other areas is also being analyzed to determine 

appropriate methods for developing annual accruals which pertain to individual and 

excise taxes. 

• Allowances for losses on accounts and loans receivable.-A significant number of 

Government agencies do not provide a reasonable estimate of losses, while others make 

no estimate at all. The objective is to develop criteria for "evaluating and reporting 

collectability." The results of a survey of each agency's collection experience are being 

assessed. This information, in conjunction with the release of interim reporting requirements, will be used to develop standards and techniques for estimating uncollectable 

amounts. 

• Valuation of assets. -Presently assets are accounted for on a historical cost basis; some 

assets have no recorded value. The objective is to improve the basis for valuation of 

Federal assets. Asset classifications are being studied to assess the adequacy of 

valuation methods presently used. An improved historical cost base to which current 

values can be ascribed is being sought. 

• Federal employee retirement systems. -There are approximately 50 Federal plans 

which could be included in the financial statements. There are no standards for reporting 

on the financial status of the plans. Further work has been deferred pending implementation of Public Law 95-595. This law has made it incumbent on the General Accounting 

Office and the President to develop an adequate reporting system. 

• Social security. -The extent to which an accounting liability for social security should be 

recorded is indeterminate. Tho objective iG to develop adequate disclosure for social 

security. An analysis of various methods for disclosure is under study as a joint project 

with efforts to improve reporting for Federal employee plans. 

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• Inflation accounting. -There is a recognized need to provide disclosure for the effects of 

inflation on accounting and reporting information. The objective is to determine the extent 

to which it is desirable and effective to account for the effects of inflation. Specific indexes 

related to discrete components of the financial statements, as well as the application of 

general indexes, are under consideration. 

• Allowances for losses on loan guarantees. -A number of agencies do not make any 

provision for estimated I.asses while others do not provide reasonable estimates of losses. 

The objective is to develop criteria to determine estimated losses to be reported. 

• Allowance for losses on insurance.-A number of agencies do not make any provisions 

for estimated losses while others do not provide a reasonable estimate of losses. The 

objective is to develop criteria to determine estimated losses to be reported. 
Notes to Financial Statements 

1. Summary of general accounting policies 

Principal financial statements-These consist of 

a statement of financial position, a statement of operations, and a statement of changes in financial 

position. Because of their developmental nature, 

only the most significant changes in format are disclosed in the Notes. 

Principles of consolidation-The statements include the accounts of all significant agencies and 

funds included in the unified budget of the U.S. Government. Agencies such as the U.S. Postal Service 

and the Federal Financing Bank, classified as offbudget (not included in calculating the budget surplus or deficit), have also been included in the statements because they are wholly owned and are 

clearly within the scope of Government operations. 

Government-sponsored enterprises such as the 

Federal land banks are excluded because they are 

privately owned. The Federal Reserve System is 

also excluded. lntragovernmental transactions were 

eliminated in consolidation. 

Fiscal year-The fiscal year of the U.S. Government ends on September 30. 

Reclassification and adjustment-For comparability, certain fiscal 1977 data are reclassified where 

appropriate to conform to the financial statement 

presentation for fiscal 1978. 

2. International monetary reserves 

This category as of September 30, 1978, comprises the following items: $11.7 billion in gold, recorded at $42.22 per ounce, the statutory price at 

which gold is monetized by the issuance of gold 

certificates to the Federal Reserve System; $2.9 

billion of special drawing rights, an international reserve asset; and $4.2 billion representing the U.S. 

reserve position in the International Monetary Fund. 

3. Accrued taxes receivable 

The September 30, 1978, total for taxes receivable 

represents $8.1 billion (net) for delinquent taxes and 

$15.9 billion of accrued corporate taxes. 

On May 10, 1979, the lnteragency Advisory Committee's task group on accrual of taxes presented 

its findings on corporate taxes. The methodology 

developed by the group has resulted in an increase 

in the estimate for fiscal 1978 and in the incomparability of amounts shown for fiscal 1978 and 1977. 

Had the new methodology been available for the 

fiscal 1977 statement, the amount would have been 

$20.8 billion instead of $13.5 billion. 

The September 30, 1977, total for taxes receivable 

as shown on the Statement of Financial Position 

represents $6.9 billion (net) for delinquent taxes and 

$6.6 billion of accrued corporate taxes. 

A method of estimating individual income taxes 

has not been developed, and no accrual has been 

made. However, the subject is being studied by the 

accrual of taxes task group. 

No estimated tax credit carryforward is available 

to be subtracted from taxes receivable or to be presented as a deferred credit for fiscal 1978, although 

it is estimated to approach $9 billion. A method for 

estimating the current carryforward is under study. 

In 1976-the latest year for which preliminary data 

are available-the amount is $6.9 billion, with about 

85 percent of all credits ultimately being used. 

4. Loans receivable 

Outstanding loans and allowances for losses have 

been recorded as reported by the various lending 

agencies. The allowances for losses are presumed 

to be understated and they are under study. Interest 

rates and loan repayment terms vary considerably 

for outstanding loans, with rates up to 12 percent 

and terms from as short as 90 days to well over 40 

years. 

5. Inventories 

Inventories include nondepreciable personal property and are generally stated at cost. The September 

30, 1978, total for inventories comprises $64.2 billion 

for the Department of Defense and $17.6 billion for 

other agencies. The amounts as of September 30, 

1977, were $60 billion and $16.9 billion, respectively. 

The inventory accounts do not include the weapons 

stockpile since the extent of this inventory is classified information. 

6. Land 

Land is valued at the cost paid by the Government. 

The cost of land acquired through donation, ex21 
change, bequest, forefeiture, or judicial process is 

estimated by the General Services Administration 

at amounts the Government would have paid if purchased at the date of acquisition. Pending study of 

valuation methods, the Outer Continental Shelf and 

other offshore lands, and the 712 million acres of 

public domain lands have not been included. In 1972 

a committee of the House of Representatives estimated the value of public domain lands (92 percent 

of the total onshore acreage owned by the Federal 

Government) to be $29.9 billion. 

7. Buildings, structures, and facilities 

This category consists of all real property owned 

by the Federal Government except land. The total 

reflects the acquisition cost of buildings and the cost 

of acquiring or erecting dams, utility systems, monuments, roads, and bridges. The September 30, 

1978, total represents $46.5 billion for the Department of Defense and $63.7 billion for other agencies. 

The amounts as of September 30, 1977, were $45.4 

billion and $58.4 billion, respectively. 

8. Depreciable personal property 

Military hardware and equipment are recorded at 

acquisition cost and include only depreciable property currently in use or in usable condition. The major 

components of each category are summarized 

below. 

Military hardware 

Aircraft and related 

equipment ......... . 

Ships and service 

craft ............... . 

Combat and tactical 

vehicles ........... . 

Missiles and related 

equipment ......... . 

Other ................ . 

Total .............. . 

Equipment 

Department of Defense 

Industrial plant 

equipment ....... . 

Communication and 

electronics ....... . 

Other .............. . 

Other agencies ....... . 

Total .......... . 

22 

1978 1977 

[In billions] 

$63.0 

46.6 

21.9 

13.3 

7.5 

$152.3 

= 

$12.5 

3.8 

6.0 

22.3 

23.6 

$45.9 

$64.3 

43.0 

18.6 

12.8 

4.6 

$143.3 

--

$15.1 

3.6 

7.1 

25.8 

22.3 

$48.1 

9. Accumulated depreciation 

Most Government agencies do not calculate depreciation on property and equipment; therefore, 

~ccumul~ted depreciation is estimated on a straighthne basis, from available information. The useful 

lives applied to each classification of asset are as 

follows: Buildings, structures, and facilities-SO 

years; ships and service craft-30 years; industrial 

plant equipment-20 years; all other depreciable 

assets-1 0 years. 

10. Borrowing from the public 

As of September 30, 1978, the gross amount of 

Federal debt outstanding net of unamortized premiums and discounts was $776.6 billion. This amount 

is reduced by $169.9 billion for intragovernmental 

holdings. As of September 30, 1978, foreign and 

international investors held approximately $121 billion of the debt outstanding with the public. The 

amount as of September 30, 1977, was $95 billion. 

For additional information on borrowing from the 

public, see the Federal Debt Maturity schedule in the 

supplemental section (page 34). 

11. Accrued pension, retirement, and disability 

plans 

The accounting for accrued pension and retirement plans is subject to several different assumptions, definitions, and methods of calculation. Specific 

methods applied to each of the major pension and 

retirement accruals are summarized below. Liabilities for approximately 50 other Government pension 

plans are not included because of insufficient data. 

Further study and analysis are required for adequate 

valuation and disclosure of pension and retirement 

liabilities. 

Military personnel and civilian employees: Based 

on the estimated present value of accrued benefits 

as a~tuarially computed by the administering 

agencies. 

Social security: Based on the present value of the 

projected excess of benefits over contributions for 

present participants for the next 75 years. On December 20, 1977, Public Law 95-216 amended the 

Social Security Act resulting in changes to the estimates of future benefits and contributions. Because 

of the different bases for calculation of the liability 

as of September 30, 1978 and 1977, the estimates 

are not comparable. If the amendments had been 

effective as of September 30, 1977, the liability for 

social security would have been $739.1 billion instead of $802.6 billion. 

-Veterans compensation: Represents the present 

value of annual benefit payments estimated to the 

year 2000. 
I 

Federal employees compensation: Represents_ 

estimated future costs for approved Federal Employeos Compensation Act cases. 

For additional information on accrued pensions, 

see the Analysis of Pension and Retirement Plans 

schedule in the supplemental section (page 35). 

12. Loss reserves for guarantee and insurance 

programs 

For additional information on loss reserves for 

guarantee and insurance programs, see the Commitments a_nd Contingencies of the U.S. Government 

schedule in the supplemental section (page 33). 

13. Prior period adjustment 

The balance of fiscal deficit at September 30, 

1977, has been restated from the amount previously 

reported to reflect the cumulative effect of corrections 

for errors identified in fiscal 1978. The loss reserves 

for guarantee and insurance programs was overstated by $24.8 billion at September 30, 1977, and 

$25.1 billion at September 30, 1976. Loans receivable was overstated by $12.3 billion at September 

30, 1977, and $10.9 billion at September 30, 1976. 

14. Current noncash provision for social security 

The noncash provision for social security represents changes in the social security accrued liability 

between periods based on a 30-year amortization of 

the actuarial deficit. Accounting methods for this 

provision require additional study. 

The noncash amount is not included in the Statement of Operations because a substantial but indeterminate portion is not applicable to the current 

period. The Statement of Operations does include 

cash benefit payments. 

On December 20, 1977, Public Law 95-216 

amended the Social Security Act resulting in changes 

to the estimates of future benefits and contributions. 

Because of the different bases for calculation of the 

liability as of September 30, 1978 and 1977, the 

estimates are not comparable. If the amendments 

had been effective as of September 30, 1977, the 

noncash provision for social security would have 

been $108.3 billion instead of $171.8 billion. 

15. Contingencies 

Several Government agencies insure businesses 

and individuals against various types of risks. The 

amount of insurance coverage in force, representing 

the maximum risk exposure to the Government, is 

$2,056.2 billion as of September 30, 1978. 

The Government also guarantees loans by nonGovernment enterprises to businesses and individuals. These guarantees become liabilities of the 

Government only when it is required to honor its 

guarantees. Loan guarantees in force at September 

30, 1978, are $234.9 billion. For further information 

on contingencies, see the Commitments and Contingencies of the U.S. Government schedule in the 

supplemental section (page 33). 

16. Open-ended programs and fixed costs 

The Government also commits itself to provide 

services by passing laws that make spending mandatory. Since a significant amount of future spending 

is fixed by law, it is very probable that the Government will· pay for these programs in future years. 

Listed below are the programs for fiscal 1978 that 

can be terminated only if the laws are changed. 

1978 

[In billions] 

Payments for individuals 

Social security and railroad retirement ................. . 

Federal employees retirement 

and insurance .................. . 

Unemployment assistance ......... . 

Veterans benefits ................. . 

Medicare and Medicaid ............ . 

Housing payments ................ . 

Public assistance related 

programs ...................... . 

Net interest ........................ . 

General revenue sharing ............ . 

Other open-ended programs and 

fixed costs ..................... _. .. 

Total ............. · .. · ......... . ,...•~. 

$96.2 

20.0 

12.4 

13.1 

35.9 

3.6 

22.7 

203.9 

35.4 

6.8 

15.5 

$26TT 

23 
Supplemental Schedules 

( 
I 

Introductory Statement to the Schedules 

The following schedules present information which in some cases is unique to the Federal 

Government or is not generally shown as a part of published financial statements. The information 

in the schedules reflects various operations of the Government under laws passed by the 

Congress, and in some cases shows the financial costs to the Government of providing benefits 

through the tax system or through other indirect means as opposed to direct Federal revenue 

dbllection or spending. 

There are certain schedules that are incomplete. As a prototype, this report attempts to 

show what is planned with regard to providing a comprehensive overview of Federal financial 

operations. In some cases the schedules support the financial results shown in the consolidated 

financial statements; in others there is little relationship between the schedules and the statements. Consequently, each of the table::; Ghould be conGiderod individually aG a Gpecialized 

information source. 

The following schedules are presented in this section: 

Flow of Funds Projections 

The information in this schedule was obtained from the 1980 Budget of the U.S. 

Government prepared by the Office of Management and Budget. It presents actual 1978 

and projected 1979-82 cash receipts and outlays. Although the consolidated financial 

statements are prepared on an accrual basis and reflect historical financial data, no 

attempt h_as been made here to develop projections on an accrual basis. The data 

presented here also differ from the statements in that certain receipts are treated as 

reductions of outlays, according to conventions adopted for budgeting purposes. 

These projections are not forecasts of future receipts and outlays, nor are they 

recommendations for policy-setting purposes. They simply reflect what may happen to 

cash basis revenues and expenditures considering certain basic assumptions reflected 

in the budget. The receipts projections are consistent with the continuation of current tax 

laws as modified in the 1980 Budget. Outlay estimates indicate the degree to which 

resources would be committed by the continuation of existing and currently proposed 

programs through fiscal 1982. 

11 Financial Statements of the U.S. Government Restated for General Price-Level Changes 

This schedule is developed from the Statement of Financial Position and Statement 

of Operations. Historical values have been restated to account for changes in the general 

purchasing power of the dollar. Accounting for inflation by this method provides comparability between years, since all dollars are equivalent to the current level of purchasing 

power. 

This restatement generally follows Accounting Principles Board Statement No. 3, 

"Financial Statements Restated for General Price-Level Changes." On December 28, 

1978, the Financial Accounting Standards Board issued the Exposure Draft, "Financial 

Reporting and Changing Prices," which provides a format for supplemental inflation 

reporting as well as a choice between current costs and, if certain criteria are met, historical 

cost/constant dollar reporting. 

Derived from the GNP implicit price deflator, the conversion fa_ctors used here are: 

fiscal 1978-1.030; fiscal 1977-1.076; transition quarter-1.141; fiscal 1976-1.154; 

and fiscal 1975-1.219. Monetary assets and liabilities as of September 30, 1978, are 

not restated because they already represent dollars of current general purchasing power. 

27 
Ill Effect of Tax Benefits on Federal Revenues 

The Effect of Tax Benefits on Federal Revenues schedule is designed to show the 

revenue losses attributable to tax law provisions that allow special exclusions, exemptions, 

or deductions from gross income or provide special credits, tax rates, or deferrals. The 

schedule shows the approximate cost of tax benefits. 

It should be noted that the effect on revenues of adding or deleting a particular tax 

benefit would not be the same as the dollar amount currently associated with the benefit. 

Consequently, it is not possible to say what the effects of increasing or decreasing selected 

benefits would be without considering a number of variables. 

Some minor distortions may have occurred since data presented have been condensed for purposes of this report. 

IV Commitments and Contingencies of the U.S. Government 

The Commitments and Contingencies schedule is designed to show two basic types 

of financial information. These are the maximum potential liabilities and the anticipated 

liabilities which it is reasonably certain, based on experience and other factors, will occur. 

The anticipated liabilities are the equivalent to allowance for losses. 

As used in commercial accounting, a commitment represents an obligation to pay 

for goods or services upon delivery under a contractual arrangement. Commitments 

shown here are represented by long-term contracts for which appropriations have not yet 

been provided by the Congress, and undelivered orders representing obligations of currently available appropriations. 

A contingency represents a possible exposure to a liability depending upon the 

outcome of uncertain future events or circumstances. Contingencies are stated in the 

table in terms of the maximum risk exposure without regard to existing contingent assets 

which would be available to offset potential losses. The "ratio of losses incurred to 

premiums written" represents the probability of incurring those losses. "Loss reserves" 

supports the balance sheet liability "loss reserves for guarantee and insurance programs" 

and represents the anticipated liability. 

V Federal Debt Maturity 

The Federal Debt Maturity schedule reflects information on the borrowing of the 

Federal Government needed to finance the Government's operations. 

Information on the debt is provided by type of debt instrument, average interest rate 

charged for each type, and maturity. This schedule directly supports the balance sheet 

caption, "Borrowing from the public," which is shown net of intragovernmental holdings 

and unamortized premium or discount. lntragovernmental holdings represent that portion 

of the total Federal debt held by Federal entities, including the major trust funds. 

VI Additions to Non-Federal Economic Resources 

28 

This schedule indicates the ways in which the Government uses its resources to add 

to the physical and human resources of the Nation without acquiring physical assets. 

Some of these investment-type expenditures, while not adding to the Federal assets, add 

to the assets of State and local government or private institutions, and all enhance the 

future productivity of the Nation. 

While this schedule does not provide a precise measure of the difference between 

capital and current items, it does indicate a useful general magnitude. 

Additions to State, local, and private assets include construction grants for highways, 

hospitals, and airports, subsidies to the merchant_ fleet, and conservation projects, which 

increase the value of private farmland and water resources. Other developmental expenditures reflect current Federal expenditures and grants which will benefit the Nation 

in future years by increasing productivity or well-being. These include research and 

development costs and education and training. 

.., . 

I 
J 

I 

VII Analysis of Pension and Retirement Plans 

The Analysis of Pension and Retirement Plans schedule is designed to provide an 

insight into the size of these programs and associated future financing requirements as 

of September 30, 1978, for all Government-financed plans. Amounts for social security, 

military personnel, civilian employees, and other plans support the liabilities on the Consolidated Statement of Financial Position. The second and third parts of this schedule 

provide information on cash flows and benefits paid to pensioners. 

To the extent that information for this schedule was available, it was obtained from 

direct contact with actuaries for the respective agencies or from published Treasury 

Department reports. The schedule is incomplete in two significant regards: (1) The number 

of plans ultimately to be included in the schedule is not yet resolved-as many as 50 

separate plans might be included; and (2) no determination has been made concerning 

the appropriate accounting procedures to be used in computing liabilities under the various 

plans. There are any number of ways the liabilities might be computed. Methods may be 

acceptable if they are rational and systematic and result in a reasonable measure of 

pension cost from year to year. 

VIII Estimated Interest Subsidy on Direct Loans Outstanding 

Government public policy objectives are achieved in this area by providing credit for 

private borrowers and Government corporations on more favorable terms than are available to the Treasury. Many programs do not involve subsidies. This schedule attempts 

to measure the difference between what the Government has to pay to borr!)~ funds to 

support its general operations and the interest an agency charges a borrower. This 

schedule is being developed using gross loans receivable as a basis; therefore, it does 

not take into account allowances for losses. 

The schedule shows the annual and total costs to the Government for all significant 

loan subsidy programs. Computations are based on (1) the average life of the loan, which 

represents the average number of years for repayment of each type of loan; (2) the 

Treasury borrowing rate for comparable maturities, which is based on the rates that the 

Treasury had to pay on interest-bearing public debt at the time the loan was made to the 

borrower; (3) the rate charged to the borrower, which is the average interest rate charged 

for each program; and (4) the total amount to subsidized loans outstanding, which covers 

the total amount of loans subsidized by the Treasury. 

Foreign subsidy information, supplied by the Treasury's Office of Economic Policy 

pursuant to section (f) of the Foreign Assistance Act, provides an improved picture of 

foreign loan subsidies. This schedule is a rough approximation of the costs of these 

programs to the Government. The lack of specific information on comparable maturities 

of public debt securities distorts the true cost. Additionally, while the schedule recognizes 

only annual interest costs, a more precise reading on the costs associated with the specific 

loan programs would require capitalizing the cost at the time the loans are made. The 

feasibility of these refinements is under consideration. 

IX Federal Facts and Figures 

The schedule is designed to provide roadorc of tho financial ctatomcntc and cchcdulos 

a set of recognizable benchmarks to use in making comparisons and identifying any 

relationships. Major emphasis has been given to providing information on the gross 

national product, the Consumer Price l'ndex, employment, Federal debt, Federal expenses, and personal income taxes. In all cases the most current data available have 

been provided . 

.,. 

29 
SCHEDULE I 

Flow of Funds Projections 

for the Years Ended 

September 30, 1978-82 

[In billions] 

Cash receipts 

Taxes 

Individual ............................................... : ... . 

Corporation ................................................. . 

Social insurance taxes and contributions 

Employment taxes and contributions ........ .' .................. . 

Unemployment insurance ..................................... . 

Contributions for other insurance and retirement ................. . 

Excise taxes .................................................. . 

Estate and gift taxes ........................................... . 

Customs duties ................................................ . 

Miscellaneous ................................................. . 

Rents and royalties ............................................ . 

Total cash receipts ........................................... . 

Cash outlays by function 

Administration of justice ........................................ . 

Agriculture .... : ............................................... . 

Allowances and civilian pay raises and contingencies .............. . 

Commerce and housing credit ................................... . 

Community and regional development ............................ . 

Education, training, employment, and social services ............... . 

Energy ....................................................... . 

General government ........................................... . 

General science, space, and technology .......................... . 

General purpose fiscal assistance ...................... : ......... . 

Health ........................................................ . 

Income security ................................................ . 

Interest ..................................................... • • • 

International affairs ............................................. . 

National defense ............................................... . 

Natural resources and environment .............................. . 

Transportation ................................................. . 

Veterans benefits and services .................................. . 

Total cash outlays ........................................... . 

Total budget surplus (deficit) ................................ . 

Off-budget Federal entities (deficit) ............................... . 

Total surplus (deficit) ..................................... . 

30 

1978 

Actual 

$181.0 

59.9 

103.9 

13.8 

5.7 

18.4 

5.3 

6.6 

20.9 

2.3 

417.8 

3.8 

7.7 

3.3 

11.0 

26.5 

5.9 

3.8 

4.7 

9.6 

43.7 

146.2 

44.0 

5.9 

105.2 

10.9 

15.4 

19.0 

466.6 

(48.8) 

(10.3) 

$(59.1) 

1979 

$203.6 

70.3 

119.7 

15.9 

6.2 

18.4 

5.7 

7.5 

23.9 

3.5 

474.7 

4.4 

6.2 

3.0 

9.1 

30.7 

8.6 

4.4 

5.2 

8.9 

49.1 

158.9 

52.8 

7.3 

114.5 

11.2 

17.5 

20.3 

512.1 

(37.4) 

(12.0) 

$(49.4) 

---

1980 1981 

Estimate 

$227.3 $269.1 

71.0 76.7 

139.2 162.5 

15.9 15.9 

6.4 6.8 

18.5 19.4 

6.0 6.2 

8.4 9.5 

26.3 28.7 

2.6 3.0 

521.6 597.8 

4.4 4.4 

4.3 5.6 

1.4 8.5 

3.4 3.4 

7.3 8.4 

30.2 31.0 

7.9 7.8 

4.4 4.5 

5.5 5.5 

8.8 8.7 

53.4 58.8 

179.1 194.1 

57.0 59.1 

8.2 8.9 

125.8 137.0 

11.4 12.6 

17.6 19.5 

20.5 21.2 

550.6 599.0 

(29.0) 7f2) 

(12.0) (11.5) 

$(41.0) $(12.7) 

1982 

$311.2 

86.0 

185.4 

15.5 

7.1 

19.5 

6.7 

10.2 

31.4 

3.0 

676.0 

4.4 

5.9 

15.2 

3.0 

8.8 

31.5 

6.8 

4.7 

5.3 

8.7 

64.2 

207.5 

59.5 

9.5 

148.2 

13.3 

20.0 

21.7 

638.2 

37.8 

(11.1) 

$26.7 

--

I 

) 

I 

I 

l 
I 

SCHEDULE 11 

Financial Statements of the 

U.S. Government 

Restated for General Price-Level Changes 

(Restated to September 30, 1978, Dollars) 

[In billions] 

Financial position 

Assets 

Cash and monetary reserves .................................. . 

Receivables (net of allowances) ............................... . 

Inventories (at cost) ................. • • • • • • • • • • • • • • • • • • • • • • • · · · 

Property and equipment (net of accumulated 

depreciation) .............................................. . 

Deferred charges and other assets ........................... : .. 

Total assets ............................................ . 

Liabilities 

Accounts payable ............................................ . 

Unearned revenue ........................................... . 

Borrowing from the public ..................................... . 

Accrued pension, retirement, and disability 

plans ..................................................... . 

Loss reserves for guarantee and insurance 

programs ................................................. . 

Other liabilities ............................................... . 

Total liabilities ........................................... . 

Accumulated position 

Accumulated position beginning of period ......................... . 

Prior period adjustment ...................................... . 

Restated accumulated position beginning of period ................ . 

Current period results .......................................... . 

Current noncash provision for social security ...................... . 

Accumulated position end·of period .............................. . 

Total liabilities and accumulated position .................... . 

Operating results 

Revenues 

Taxes and duties 

Business-type operations ..................................... . 

Total revenues .......................................... . 

Expenses 

Administration of justice ...................................... . 

Agriculture ............................................... . 

Commerce and housing credit ................................. . 

Community and regional development .......................... . 

Education, training, employment, and social 

services .................................................. . 

Energy ..................................................... . 

General government ......................................... . 

General purpose fiscal assistance ............................. . 

General science, space, and technology ........................ . 

Health ............................................... · ....... . 

Income security .............................................. . 

Interest ..................................................... . 

International affairs ........................................... . 

National defense ............................................. . 

Natural resources and environment ............................ . 

Transportation ............................................... . 

Veterans benefits and services ................................ . 

Total expenses .......................................... . 

General price-level gain ........................................ . 

Current period results 

1978 

Sept. 30 

$46.2 

156.9 

84.3 

221.6 

30.7 

$539.7 

$65.8 

14.3 

606.7 

1,401.1 

3.8 

45.2 

(1,520,8) 

13.5 

(1,507.3) 

39.3 

(129.2) 

(1,597.2) 

$539.7 

$428.9 

65.8 

494.7 

3.7 

7.4 

2.5 

11.5 

25.4 

6.9 

12.2 

19.3 

4.5 

53.3 

241.2 

50.2 

18.2 

93.9 

13.0 

15.2 

9.3 

587.7 

132.3 

$39.3 

1977 

Sept. 30 

$46.7 

136.8 

84.6 

215.0 

29.7 

$512.8 

$59.5 

13.1 

590.3 

1,303.1 

5.5 

48.6 

(1,357.4) 

16.4 

(1,341.0) 

22.4 

(188.7) 

(1,507.3) 

$512.8 

$397.1 

63.1 

460.2 

3.7 

5.4 

1.3 

7.0 

20.4 

5.2 

11.2 

17.3 

4.6 

46.3 

210.2 

46.1 

17.6 

88.6 

12.1 

14.6 

8.5 

520.1 

82.3 

$22.4 

Sept. 30 

$47.3 

131.6 

88.3 

204.8 

26.8 

$498.8 

$61.1 

13.2 

562.7 

1,149.3 

5.2 

48.3 

(1,318.0) 

14.5 

(1,303.5) 

(26.4) 

(11.1) 

(1,341.0) 

$498.8 

$100.0 

13.8 

113.8 

2.1 

.8 

1.0 

2.1 

7.3 

1.1 

2.1 

2.4 

1.7 

12.4 

55.7 

9.3 

7.3 

29.2 

13.0 

4.9 

15.6 

1976 

June 30 

$44.9 

133.0 

90.2 

206.9 

25.1 

$500.1 

$52.6 

12.9 

547.5 

1,137.7 

4.8 

48.1 

1,803.6 

(1,147.3) 

6.2 

(1,141.1) 

(19.9) 

(142.5) 

(1,303.5) 

$500.1 

$352.3 

57.2 

409.5 

3.5 

2.6 

4.8 

5.3 

19.8 

3.3 

7.3 

8.5 

4.7 

35.3 

203.3 

43.6 

17.3 

89.8 

29.4 

15.5 

10.0 

504.0 

1975 

June 30 

$35.2 

114.5 

89.1 

208.3 

22.8 

$469.9 

$56.9 

11.5 

478.4 

1,012.3 

4.0 

47.9 

(1,083.5) 

(1,083.5) 

46.7 

(104.3) 

(1,141.1) 

$469.9 

$352.0 

50.8 

402.8 

3.5 

1.9 

5.9 

4.4 

17.6 

2.3 

8.4 

9.0 

4.4 

30.6 

195.9 

41.0 

13.9 

91.0 

26.3 

12.7 

8.7 

477.5 

121.4 

$46.7 

31 
SCHEDULE Ill 

Effect of Tax Benefits on Federal Revenues 

for Tax Years 1978 and 1977 

[In billions] 

Individuals 

Income exclusions 

Payroll benefits and allowances (group life, accident, and unemployment) ........................................... . 

Disability and retirement benefits (social security and private) .......... ·· ............................................ . 

Education allowance:; (:icholari;hips and GI benefits) ....................................•.......................... 

Medical care and insurance (employer premiums paid) ............................................................ . 

Interest and dividends (State and local bonds, and life insurance) .................................................. . 

Foreign earnings and investment incentives (income earned abroad) ............................................... . 

Capital gains at death ......................................................................................... . 

Other (includes real estate, old-age credit on home sales, and cooperatives) ........................................ . 

Income deferrals 

Interest on savings bonds ...................................................................................... . 

Real estate (home sales) ...................................................................................... . 

Deductions and credits 

Old-age, disability, and other personal exemptions ................................................................ . 

Investments (commercial capital gains, depreciation, credits, 

and other investment incentives) .............................................................................. . 

State and local nonbusiness, property, and other taxes ............................................................ . 

Property damages and losses (casualty losses) ............................... .' .................................. . 

Medical ...................................................................................................... . 

Contributions (charitable and political) ........................................................................... . 

Interest (mortgage and consumer) .............................................................................. . 

Dependent care and work incentives (child and dependent care) ................................................... . 

Real estate (new home purchases) ............................................................................. . 

Earned income ............................................................................................... . 

Corporations 

Income exclusions 

Interest and dividends (State and local debt) ..................................................................... . 

Foreign earnings and investment incentives (domestic, 

international sales, Western Hemisphere trade, and 

controlled foreign corporations) ............................................................................... . 

Interest deferrals 

Taxes (shipping companies) ................................................................................... . 

Real estate (capital gains) ..................................................................................... . 

Deductions and credits 

Exemptions (credit unions, corporate surtax, and cooperatives) .................................................... . 

Investments 

Commercial buildings and equipment (investment credit, depreciation, 

construction period interest, taxes, and expensing development costs) .......................................... . 

Mining and timber (capital gains treatment of royalties and 

certain income) ........................................................................................... . 

Agriculture related (capital outlays and gains on certain income) ................................................. . 

Contributions (charitable and political) ........................................................................... . 

Work incentives (employment credits under work programs) ....................................................... . 

Employee stock ownership plans (funded through investment and tax credits) ....................................... . 

Excess bad debt reserves (financial institutions) .................................................................. . 

•Less than $100 million. 

32 

. Estimated amount of 

revenue loss l 

·1978 1971 

$2.5 $2.3 

22.4 19.3 

.3 .2 

7.1 5.6 

5.0 4.2 

.6 .5 

8.1 7.3 

.1 

.6 .6 

1.0 .9 

3.4 3.2 

12.7 11.2 

16.4 12.6 

.4 .3 

I 

2.8 2.2 

6.6 5.3 

9.9 6.3 

.6 .5 

.1 

.3 .4 

3.6 3.5 

2.3 2.0 

.1 .1 

.5 .5 

5.8 4.4 

17.2 14.8 

.3 .2 

.1 .1 

.8 .7 

1.5 .6 

.3 .2 

.8 .5 
' 

:) 

I 

Commitments 

Long-term contracts 

SCHEDULE IV 

Commitments and co·ntingencies 

of the U.S. Government 

as of September 30, 1978 

[Amounts in billions] 

Shipbuil~ing ........................................................................................................ . 

GSA building construction ........................................................................................... . 

Energy ............................................................................................................ . 

Other .............................................................................................................. . 

Subtotal ....................................................................................................... . 

Undelivered orders 

Legislative branch .................................................................................................. . 

Judicial branch ..................................................................................................... . 

Executive Office of the President ..................................................................................... . 

Funds appropriated to the President .................................................................................. . 

Defense ........................................................................................................... . 

Health, Education, and Welfare ....................................................................................... . 

Housing and Urban Development ................................... : . ................................................ . 

Transportation ...................................................................................................... . 

Environmental Protection Agency ..................................................................................... . 

Other agencies ................................... .' ................................................................. . 

Off-budget agencies ................................................................................................. . 

Subtotal ....................................................................................................... . 

Total commitments ............................................................................................ . 

Contingencies 

Government loan and credit guarantees 

Housing ........................................................... . 

Export-Import Bank of the United States ............................... . 

Business loan and investment fund ................................... . 

Farm ownership .................................................... . 

Rural development .................................................. . 

Shipbuilding and operations .......................................... . 

Transportation ...................................................... . 

Veterans benefits ................................................... . 

Other .............................................................. . 

Subtotal ....................................................... . 

Insurance in force 

Federal Deposit Insurance Corp ...................................... . 

Federal Savings and Loan Insurance Corp ............................. . 

Federal Insurance Administration ..................................... . 

Nuclear Regulatory Commission ...................................... . 

National Credit Union Administration ..................... · ............. . 

Veterans Administration ............................................. . 

Department of Transportation ........................................ . 

Other .............................................................. . 

Subtotal ......... · .............................................. . 

Unadjudicated claims 

Transportation ...................................................... . 

Other .............................................................. . 

Subtotal ....................................................... . 

Other contingencies 

Veterans readjustment benefits ....................................... . 

Other .............................................................. . 

Subtotal ................................................•....... 

Total contingencies ........................................... . 

Total loss reserves ............................................ . 

•Less than $100 million . 

.. Less than one-tenth of 1 percent. 

Contingent liability 

(maximum risk 

exposure) 

$133.8 

5.2 

7.6 

9.8 

18.1 

5.6 

2.3 

41.0 

11.5 

234.9 

721.6 

411.8 

618.7 

74.5 

43.0 

33.8 

123.0 

29.8 

2,056.2 

4.6 

______M, 

~ 

12.7 

~ 

8.1 

$2,318.7 

Ratio of 

losses incurred 

to premiums 

written 

**% 

16.5 

1.3 

1.2 

.2 

1.3 

.4 

3.3 

.3 

5.1 

Amounts 

outst~ndin_g 

$4.6 

2.2 

10.8 

1.6 

.1 

18.1 

35.5 

29.9 

193.6 

18.8 

10.2 

35.1 

2.9 

344.2 

$363.4 

Loss 

reserves 

$0.1 

.9 

.1 

.1 

.2 

1.4 

.3 

.1 

1.0 

1.4 

. 

.4 

--_-4 

$3.2 

33 
Total 

debt 

Marketable 

Bills ...................... ·········· $157.8 

Notes ............................ .. 263.7 

Bonds ................ : ............ . 46.0 

467.5 

Non marketable 

Foreign government series .......... . 21.7 

Government account series .......... . .8 

Investment series ................... . .2 

U.S. savings bonds ................. . 79.8 

Other ............................. . 24.8 

127.3 

Other 

Agency securities ..... · .............. . 7.3 

Other ............................. . 4.6 

11.9 

Net borrowing from the public 

Current period ..................... . 606.7 

Prior period ........................ . 548.6 

Net increase ......................... . $58.1 

SCHEDULE V 

Federal Debt Maturity 

as of September 30, 1978 

[Amounts in billions] 

Average Within 

interest 1 1-5 

rate year years 

7.668% $157.8 $-

7.314 62.1 171.4 

6.761 8.0 

7.377 219.9 179.4 

6.908 7.2 12.7 

4.292 .6 .2 

2.750 .2 

5.390 7.6 20.7 

6.041 

5.765 15.4 33.8 

5.950 1.4 1.3 

--- 5.950 1.4 1.3 

236.7 214.5 

227.1 193.7 

$9.6 $20.8 

SCHEDULE VI 

Additions to Non-Federal 

Economic Resources 

5-10 

years 

$-

30.2 

2.0 

~ 

1.8 

2.1 

3.9 

1.3 

1.3 

37.4 

36.5 

~ 

for the Years Ended September 30, 1978-80 

[In billions] 

1978 

Actual 

Additions to State, local, and private assets 

Community and regional development ................................... . $3.5 

Environment ......................................................... . 3.4 

Local public works .................................................... . 3.1 

Transportation 

Highways and mass transit .......................................... . 7.2 

Other transportation ............................................ · ..... . .7 

Other ................................................................ . .2 

Total additions ...................................................... . 18.1 

Other developmental expenditures 

Agriculture ........................................................... . .6 

Conservation ......................................................... . 2.9 

Economic development ................................................ . .3 

Education ............................................................ . 7.9 

Education-income support ............................................. . 6.1 

Environment .......................................................... · .4 

Health ............................................................... . 3.7 

Science and engineering .............................................. . 5.5 

Training ............................................................. . 3.8 

Transportation ........................................................ . .3 

Other ................................................................ . .3 

Total developmental expenditures .................................... . 31.8 

Total investment outlays ........................................... . $49.9 

34 

~~t~rity - 20 

10-20 years or No fixed /' 

ye~_rs longer maturity 

$- $- $-

16.3 19.7 

~ ~ 

49.4 

24.8 

74.2 

1.8 1.5 

4.6 

1.8 6.1 I 

18.1 19.7 80.3 

12.7 15.8 62.8 

-m ~ $17.5 

---

1979 1980 

Estimate 

$4.0 $4.5 

3.4 3.8 

2.0 .3 

8.1 8.5 

.7 .6 

.2 .2 

~ 17.9 

.6 .6 

3.9 4.0 

.3 .3 

9.5 9.9 

6.2 6.0 

.5 .6 

3.8 4.1 

6.4 7.0 

4.9 4.7 

.4 .3 

.4 .4 

36.9 37.9 

$55.3 $5_5.8 

l 
SCHEDULE VII 

Analysis of Pension and Retirement Plans 

as of September 30, 1978 

Llabllltles 

Accrued liability, September 30, 1977 

Add: 

[Amounts in billions] 

Accruals ............................................................ • • • • .. • • 

Deduct: 

Benefits paid ............................................................... . 

Accrued liability, September 30, 1978 ......................... . 

Accrued liability, September 30, 1978 ............................................. . 

Cumulative trust fund transactions through end of period 

Receipts ......................................................... • ..... • • • • • • • • 

Outlays (net of unamortized discount and premium on investments) ................. . 

Total assets of the trust fund ................................................. . 

Liability net of trust fund balance, 

September 30, 1978 ..................................................... . 

Social security 

Number Percent of 

of years taxable 

covered payroll Amount 

Projected cash receipts 

and disbursements 

Cash receipts 

1978 ...................................... 1 10.35 $91.8 

1979-1982 ................................ 4 10.56 517.4 

1983-1992 ................................ 10 12.04 2,570.6 

1993-2002 ................................ 10 13.74 5,494.9 

Subtotal ................................. 25 8,674.7 

2003-2027 ................................ 25 14.13 42,804.1 

2028-2052 ................................ 25 8.99 106.183.6 

Total .................................... 157,662.4 

Cash disbursements 

1978 ...................................... 10.95 97.1 

1979-1982 ································ 4 10.29 501.8 

1983-1992 ................................ 10 10.44 2,211.6 

1993-2002 ................. : .............. 10 10.96 4,375.6 

Subtotal ................................. 25 7,186.1 

2003-2027 ................................ 25 13.51 43,622.3 

2028-2052 ................................. 25 16.50 213,790.7 

Total .................................... 264,599.1 

Social 

security 

$802.6 

222.5 

97.1 

$928.0 

$928.0 

813.9 

778.5 

35.4 

Military 

personnel 

Amount 

$9.2 

47.7 

187.8 

299.0 

543.7 

543.7 

Military Civilian 

personnel employees 

$128.9 $155.5 

27.7 28.9 

9.2 10.8 

$147.4 $173.6 

--- $147.4 $173.6 

136.1 

79.8 

~ 

$147.4 $117.3 

---

Civilian employees 

Contribution 

rate 

(percent) Amount 

7 $17.2 

7 83.4 

7 309.9 

7 

~ 

521.4 

7 3,085.0 

7 9,255.6 

. 13.272.5 

10.8 

56.1 

243.7 

422.7 

733.3 

2,738.9 

8,992.8 

12,465.0 

Net receipts or (disbursements) .......... $(106,936.7) $(543.7) $807.5 ---

Calendar year 

1978 1977 1976 1975 1974 1973 1972 1971 1970 

Beneficiaries 

Number receiving benefits (thousands) 

Social security ............................. 34,587 34,084 33,024 32,085 30,854 29,872 28,345 27,289 26,235 

Military personnel .......................... 1,220 1,175 1,129 1,070 1,007 946 890 831 773 

Civilian employees ......................... 1,583 1,508 1,432 1,372 1,306 1,192 1,092 1,026 959 

Other plans ······························· NIA NIA NIA NIA NIA NIA NIA NIA NIA 

Average monthly benefits (dollars) 

Social security ............................. 229 211 194 179 162 143 137 112 100 

Militl!ry personnel .......................... 626 583 539 486 424 387 364 340 307 

Civilian employees ......................... 604 527 495 439 366 308 276 266 231 

Other plans ............................... NIA NIA NIA NIA NIA NIA NIA NIA NIA 

NIA Not available. 

Other 

$NIA 

NIA 

NIA 

$NIA 

$NIA 

NIA 

____MA 

NIA 

$NIA ---

Other 

---

Amount 

$NIA 

NIA 

NIA 

NIA 

NIA 

NIA 

NIA 

NIA 

NIA 

NIA 

NIA 

NIA 

NIA 

NIA 

NIA 

NIA 

. $NIA 

1969 

25,312 

714 

910 

NIA 

85 

285 

212 

NIA 

35 
Agency and program 

Domestic loans 

Agriculture 

Commodity Credit Corporation ............... . 

Farmers Home Administration ................ . 

Rural Electrification Administration 

Electric systems .......................... . 

Telephone systems ....................... . 

Other ...................................... . 

Commerce 

Economic Development Administration ........ . 

Other ...................................... . 

Health, Education, and Welfare 

Health Resources Administration ............. . 

Office of Education .......................... . 

Other ........................ ••••••••••····· 

Housing and Urban Development 

Federal housing ............................ . 

Government National Mortgage 

Association .............................. . 

Community development .................... . 

College housing ............................ . 

Elderly or handicapped ...................... . 

Other ...................................... . 

Interior 

Reclamation ................................ . 

Other ...................................... . 

Transportation 

Highways .......................... •.•• ... •• 

Other ...................................... . 

Veterans 

Insurance .................................. . 

Education and housing ...................... . 

Other .............................. •••• ... •• 

District of ,Columbia ........................... . 

Interstate Commerce Commission .............. . 

Small Business 

Business and investment .................... . 

Disaster ................................... . 

U.S. Railway Association ...................... . 

Federal Financing Bank ....................... . 

Other ........................................ . 

Subtotal ............................... . 

36 

SCHEDULE VIII 

Estimated Interest Subsidy 

on Direct Loans Outstanding 

as of September 30, 1978 

[Amounts in billions) 

Total 

loans 

outstandin~ 

$0.8 

2.7 

7.1 

2.6 

.6 

.1 

.6 

4.7 

3.2 

3.5 

.4 

3.0 

.7 

.7 

.3 

.1 

.3 

.1 

1.2 

1.0 

.5 

1.3 

.1 

1.8 

3.7 

2.2 

33.8 __ ._3 

77.4 

Loan 

maturity 

range 

5-8 

Up to 40 

35 

35-50 

Up to 50 

Up to 40 

3-25 

5-50 

Up to 40 

Up to 20 

Up to 40 

25-30 

Up to 20 

30-50 

30-50 

Up to 40 

22-50 

Up to 30 

2-10 

1-40 

Indefinite 

7-30 

7-30 

5-40 

1-25 

15-25 

30 

3-15 

Up to 30 

Total 

subsidized 

loans 

outstanding 

$NIA 

NIA 

Treasury 

borrowing 

range 

(percent) 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

2.2-7.4 

Range 

charged 

borrower 

(percent) 

Various 

Various 

2-5 

2-5 

Up to 8.6 

3.4-8.3 

3-9.5 

2.3-10.6 

3-8 

3-7.5 

3-12 

7.5--8.5 

Various 

2.8-3.8 

6.9-7.4. 

3-8.8 

3-4.1 

2-10.3 

1-8.5 

4-5 

3-9.5 

4-9.5 

2.6-8.4 

4.5-9.5 

6.6-7.9 

6.6 

2-5 

1-9.3 

•, 

Annual Total 

cost to cost to 

Government Government 

$NIA $NIA 

I 

NIA NIA 

l 
Foreign loans 

International security assistance 

Military Sales Act ............................ Agency for International Development 

Currency loans to foreign 

governments ······························ Currency loans to private 

enterprises ................................ 

Country loans ............................... 

Agriculture 

Commodity loans ···························· Long-term dollar sales ........................ 

Short-term export sales ....................... 

Treasury 

Lend-lease and surplus property ............... 

Loans to the United Kingdom ................. Other ....................................... 

Export-Import Bank of the United States .......... 

International Communicatic;>n Agency ............. 

Other ......................................... 

Subtotal ································ Total ································· 

NIA Not available. 

•Less than $100 million. 

1. 

SCHEDULE VIII-Continued 

[Amounts in billions] 

Total 

loans 

outstanding 

1.8 

1.1 

.1 

14.2 

4.2 

5.9 

2.2 

1.3 

2.5 

.1 

11.6 

.1 

~ 

$122.5 

---

Loan 

maturity 

range 

Up to 40 

Up to 40 

10-20 

Up to 40 

1-20 

7-40 

3 

15 

55 

Indefinite 

Up to 30 

4-25 

Various 

Total 

subsidized 

loans 

outstanding 

1.2 

.3 

12.5 

.9 

5.8 

NIA 

NIA 

2.1 

~ 

$NIA ---

Treasury 

borrowing 

range 

(percent) 

3.6-7.4 

3.4-6.6 

4.9-7.4 

2.9-7.4 

6.3-7.4 

3.2-7.4 

6.6-7.4 

Up to5.1 

Up._to3.0 

2.2-3.0 

3.6-7.4 

2.2-7.4 

2.2-7.4 

Range 

charged 

borrower 

(percent) 

3.0-6.1 

.8-5.4 

Up to 6.0 

.5-6.0 

Up to 6.3 

.8-5.0 

Up to 6.1 

4.0 

2.0 

Up to 6.0 

Up to 6.0 

Various 

Various 

Annual Total 

cost to cost to 

Government Goverriment 

.4 

.1 

.2 6.4 

.6 

.1 3.2 

NIA NIA 

NIA NIA 

.1 

--_-3 ~ 

$NIA $N/A 

37 
Gross national product 

SCHEDULE IX 

Federal Facts and Figures 

Current dollars ................................................................... . 

Per capita ....................................... ••••••••••••••••••·············· 

1972 dollars ........................................................ • • • • • • • • • • • • • • • 

Per capita ........................................................... •••••••••••• 

Population (includes Armed Forces) .................................................. . 

Consumer Price Index • • 

All items (1967 = 100) ........................................................... .. 

Purchasing power (1967 = $1.00) .................................................. . 

Employment 

Total labor force .................................................................. . 

Total employed ................................................................... . 

Federal employment 

Armed Forces .................................................................. . 

Civilian ........................................... • • • • • • • • • • • • • • • • · · · · · · · · · · · ·· · 

Federal employment as a percent 

of total U.S. employment ........................................................ . 

Federal debt 

Unit of 

measure 

billions 

dollars 

billions 

dollars 

millions 

millions 

millions 

millions 

millions 

percent 

Grnss rlRhl hillinns 

Hl7? rlnllS1rs hillinns 

Held by public (current dollars) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . billions 

Percent of GNP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . percent 

Per capita . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . dollars 

1972 dollars ........................................................................ billions 

Interest on the Federal debt (current dollars) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . billions 

Per capita . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . dollars 

Percent of GNP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . percent 

Percent of total Federal expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . percent 

1972 dollars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . billions 

Total Federal expenses (accrual) 

Current dollars ............. : ..................................................... . 

Percent of GNP .................................................................. . 

Per capita ......................................... ••••••••••••••••••·············· 

Personal income 

Current dollars ................................................................... . 

Percent of GNP ............... . 

billions 

percent 

dollars 

billions 

percent 

p.,, ~"ri'" rlnll,.rs 

1972 dollars ... ................ billions 

Percent of GNP 

Per capita ....................................... ••••••••••••••••••········•····· 

Total income taxes paid for 

adjusted income levels 

Under $6,000 .................................................................... . 

Number of taxpayers .............................................................. . 

$6,000-$9,999 ................................................................... : 

Number of taxpayers .............................................................. . 

$10,000-$15,999 ................................................................ .. 

percent 

dollars 

billions 

thousands 

billions 

thousands 

billions 

Number of taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . thousands 

$16,000-$24,999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . billions 

Number of taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . thousands 

$25,000-$49,999 .................................................................. billions 

Number of taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . thousands 

$50,000-$99,999 ........................................ · .......................... billions 

Number of taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . thousands 

$100,000-$999,999 ................................................................ billions 

Number of taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . thousands 

$1 million and over. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . billions 

1978 

2,141 

9,784 

1,394 

6,370 

218.9 

199.1 

.50 

100.9 

94.9 

2.2 

2.8 

5.3 

7A04 

fiOA 1 

606.7 

28.3 

2,772 

395.0 

48.7 

222.5 

2.3 

8.5 

31.7 

570.7 

26.7 

2,607 

1,743 

81.4 

7,!lfi.1 

1,135 

81.4 

5,185 

N/A 

Number of taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . thousands N/A 

Federal participation in domestic credit markets 

Total funds advanced in U.S. credit markets (nonfinancial sectors) ............... : ...... billions 366.9 

Total funds advanced under Federal guidance (direct and guaranteed loans) ............. billions 59.0 

Federal participation rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . percent 16.1 

Total funds raised in U.S. credit markets (nonfinancial sectors) .......................... billions 366.9 

Total funds raised under Federal guidance (includes Federal borrowing from the public, guaranteed borrowing, and sponsored agency borrowing) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . billions 94.5 

Federal participation rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . percent 25.8 

N/A Not available. 

1977 1976 

1,916 1,727 

8,823 8,018 

1,347. 1,283 

6,205 5,959 

217.2 215.4 

184.0 170.5 

.54 .58 

97.9 95.2 

91.1 87.8 

2.1 2.1 

2.7 2.7 

5.3 5.6 

70!l 1 645.7 

4!lA 7 47!l!l 

548.6 494.8 

28.6 28.6 

2,525 2,296 

385.7 367.7 

41.9 45.2 

192.9 209.8 

2.2 2.6 

8.9 7.8 

29.5 33.6 

472.9 574.3 

24.7 33.3 

2,177 2,666 

1,561 1,402 

81.5 81.2 

7,1!l0 6,507 

1,098 1,042 

81.5 81.2 

5,056 4,836 

1.6 2.2 

22,630 13,063 

7.6 8.7 

15.037 14,863 

21.2 18.0 

16,815 14,493 

41.7 42.2 

16,594 17,827 

49.1 38.9 

9.078 7,234 

19.2 16.2 

1,122 944 

17.2 14.1 

273 224 

1.9 1.5 

2.0 1.0 

317.5 309.9 

36.6 33.4 

11.5 10.7 

317.5 309.9 

78.9 116.6 

24.9 37.8 

38 * U.S. GOVERNMENT PRINTING OFFICE, 1980 0- 622-890/1284 REGION 3-1 

l 

t 

·, 
DEPARTMENT OF THE TREASURY 

FISCAL SERVICE 

BUREAU OF GOV!,:RNMENT FINANCIAL OPERATIONSWASHINGTON, D.C. 20226 

OFFICIAL BUSINESS 

PENALTY FOR PRIVATE USE, $300 

POSTAGE ANO FEES PAID 

DEPARTMENT OF THE TREASURY 

TREAS 553