Federal & Expenditures

Let’s look now at the different levels of governmerit, The U.S. government is the world’s biggest enterprise. It buys more automobiles and steel, meets a bigger payroll, and handles more money than any . other organization anywhere. The numbers involved in federal’finance are astronomical-in the billions and trillions of dollars, The federal budget expenditures for 2001 are projected to be $1835 billion or $1.84 trillion; this enormous number amounts to roughly $6600 for each American, or approximately 18 percent of total national output (gross domestic product, or ,GDP).

Table 16-2 011 page 330 lists the major categories of federal expenditure for fiscal year 2001. (The federal fiscal year 2001 covers October I, 2000, through September 30, 2001.) The most rapidly expanding items in the last , two decades have been entitlement programs, which provide benefits or payments to any persons who’ meet certain eligibility requirements set down by law.The major entitlements are social security (old age, survivors, and disability insurance), health programs (including Medicare for those over 65 and Medicaid for indigent families), and in comesecurity programs (including subsidies for food and unemployment insurance). In fact, virtually the entire growth in federal spending in recent yean can be accounted for by entitlement programs, which increased from 28 percent of the budget in 1960 to 58 percent in 2000.

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