Nominal federal government spending has increased significantly over the years, tripling from 1980 to 2000. By 2016, spending on health rose by 83% from 2006, while overall federal expenditures grew by 50% in that same period. Major components of federal spending include income security and national defense, which together account for nearly half of total spending.

1. DataPost
Federal Reserve Bank of San Francisco
Education & Outreach
Government Spending
Measuring Federal Expenditures
Date last updated: December 8, 2017

2. Nominal government
spending has grown over
time. Its value in 2000 was
more than triple that in 1980.
Government Spending – Did You Know?
DataPost
Spending
• Like households and firms, the federal
government is also a consumer of goods and
services
Facts
• The BEA reports nominal values of federal
government expenditures on an annual and
quarterly basis
• The measure of government spending shown to
the right is part of NIPA (National Income and
Product Accounts) Table 3.16, which is published
by the Bureau of Economic Analysis (BEA)
Relationship
• The sheer size of federal government spending
makes government expenditures a major
component of U.S. gross domestic product (GDP)
$532
$1,199
$1,839
$3,487
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
1980 1990 2000 2010
Source: Bureau of Economic Analysis
Federal Government Current Expenditures
($billions, nominal annual values for years shown)
Note: See PowerPoint file for references
www.frbsf.org/education/teacher-resources/datapost FRBSF Education & Outreach

3. $0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
2006 2016
$94
$127$69 $104
$128 $147
$446
$582
$501
$588
$668
$1,223
$858
$1,378
Income Security
Health
National Defense
General Public
Service
Economic Affairs
Education
Other
Government Spending by Function
2006 vs. 2016
DataPost
Source: Bureau of Economic Analysis
Together, income security
and national defense
account for almost 50% of
all federal spending.
Nominal spending on health
increased 83% between
2006 and 2016.
Overall, nominal federal
spending increased 50%
between 2006 and 2016.
($billions, nominal annual values)
www.frbsf.org/education/teacher-resources/datapost FRBSF Education & Outreach

4. Federal Government Current Expenditures
Nominal annual values ($billions) through 2016
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
DataPost
Source: Bureau of Economic Analysis
www.frbsf.org/education/teacher-resources/datapost FRBSF Education & Outreach

5. What Do You Think?
1. In general, how did spending on education in
2006 compare to 2016? (See slide 3)
2. What was total government spending in 2006? In
2016? (See slide 3)
3. What percentage of federal spending went to
education in 2006? In 2016? (See slide 3)
4. What was the largest category of government
spending in 2006? In 2016? (See slide 3)
DataPost www.frbsf.org/education/teacher-resources/datapost FRBSF Education & Outreach