Government Receipts and Expenditures
Third Quarter 2025
Net government saving, the difference between current receipts and current expenditures in the federal government and state and local governments, was
−$2,052.7 billion in the third quarter of 2025, increasing $28.5 billion from −$2,081.2 billion in the second quarter of 2025 (charts 1 and 2 and table 1).
“Net lending or net borrowing (–)” is an alternative measure of the government fiscal position. Net borrowing is the financing requirement of the government sector, and it is derived as net government saving plus the consumption of fixed capital and net capital transfers received less gross investment and net purchases of nonproduced assets.
Net borrowing was $2,315.7 billion in the third quarter, decreasing $34.5 billion from $2,350.2 billion in the second quarter (charts 3 and 4 and table 1).
| Line | Level | Change from preceding quarter | ||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | ||||
| Q3 | Q4 | Q1 | Q2 | Q3 | ||
| 1 | Current receipts | 8,736.6 | 140.6 | 119.0 | 244.7 | 183.1 |
| 2 | Current expenditures | 10,789.4 | 106.2 | 122.9 | 220.4 | 154.7 |
| 3 | Net government saving | −2,052.7 | 34.4 | −3.8 | 24.2 | 28.5 |
| 4 | Federal | −1,810.6 | 21.0 | 13.6 | 28.3 | 82.0 |
| 5 | State and local | −242.2 | 13.3 | −17.5 | −4.0 | −53.6 |
| 6 | Net lending or net borrowing (−) | −2,315.7 | 77.7 | 21.0 | 43.3 | 34.5 |
| 7 | Federal | −1,958.2 | −13.6 | 114.2 | 63.6 | 86.2 |
| 8 | State and local | −357.5 | 91.3 | −93.1 | −20.4 | −51.7 |
U.S. Bureau of Economic Analysis
Net federal government saving was −$1,810.6 billion in the third quarter, increasing $82.0 billion from −$1,892.6 billion in the second quarter (table 2). In the third quarter, current receipts and current expenditures decelerated.
Federal government net borrowing was $1,958.2 billion in the third quarter, decreasing $86.2 billion from $2,044.4 billion in the second quarter.
- Personal current taxes (line 3) accelerated in the third quarter, increasing $44.1 billion after increasing $33.6 billion in the second quarter, reflecting accelerations in both withheld and nonwithheld taxes.
- Taxes on production and imports (line 4) decelerated in the third quarter, increasing $63.6 billion after increasing $172.0 billion in the second quarter. Customs duties decelerated, increasing $63.7 billion after increasing $170.7 billion. The second quarter included the effects of enacted tariffs.
- Taxes on corporate income (line 5) accelerated in the third quarter, increasing $38.8 billion after increasing $0.5 billion in the second quarter, reflecting an acceleration in corporate profits.
- Contributions for government social insurance (line 7) accelerated in the third quarter, increasing $15.2 billion after increasing $8.9 billion in the second quarter, reflecting the pattern of wages.
- Current transfer receipts (line 9) turned up in the third quarter, increasing $3.6 billion after decreasing $6.6 billion in the second quarter, reflecting an upturn in settlements from businesses.
- Consumption expenditures (line 12) accelerated in the third quarter, increasing $29.1 billion after increasing $5.7 billion in the second quarter, reflecting an upturn in nondefense consumption expenditures (line 14) and an acceleration in national defense consumption expenditures (line 13). The upturn in nondefense consumption expenditures reflects an upturn in spending for nondefense services. The acceleration in national defense consumption expenditures reflects an acceleration in spending for defense services and compensation of general government employees.
- Government social benefits to persons (line 17) turned down in the third quarter, decreasing $5.0 billion after increasing $130.5 billion in the second quarter. The downturn reflects a downturn in Social Security benefits driven by the pattern of retroactive payments related to the Social Security Fairness Act. Health insurance premium tax credits related to the Affordable Care Act turned down, reflecting the pattern of enrollments.
- Grants-in-aid to state and local governments (line 20) accelerated in the third quarter, increasing $28.4 billion after increasing $18.1 billion in the second quarter, reflecting an upturn in education grants. The upturn was partially offset by a downturn in income security grants.
- “Other current transfer payments” to the rest of the world (line 21) decreased more in the third quarter, decreasing $11.4 billion after decreasing $1.7 billion in the second quarter, reflecting a larger decrease in aid to the rest of the world.
- Interest payments (line 22) accelerated in the third quarter, increasing $38.3 billion after increasing $16.7 billion in the second quarter, reflecting an acceleration in interest paid on public issues of debt.
- Capital transfer payments (line 33) turned up in the third quarter, increasing $1.2 billion after decreasing $34.5 billion in the second quarter. Capital transfers to persons turned up in the third quarter, and capital transfers to business decreased less.
| Line | Level | Change from preceding quarter | ||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | ||||
| Q3 | Q4 | Q1 | Q2 | Q3 | ||
| 1 | Current receipts | 5,769.7 | 103.1 | 79.5 | 211.0 | 166.0 |
| 2 | Current tax receipts | 3,599.0 | 61.0 | 44.0 | 209.0 | 143.9 |
| 3 | Personal current taxes | 2,616.0 | 39.4 | 75.5 | 33.6 | 44.1 |
| 4 | Taxes on production and imports | 434.2 | 0.8 | 8.7 | 172.0 | 63.6 |
| 5 | Taxes on corporate income | 508.5 | 18.0 | −39.4 | 0.5 | 38.8 |
| 6 | Taxes from the rest of the world | 40.2 | 2.9 | −0.9 | 2.8 | −2.6 |
| 7 | Contributions for government social insurance | 1,998.1 | 23.4 | 36.4 | 8.9 | 15.2 |
| 8 | Income receipts on assets | 88.9 | 2.3 | 8.2 | 0.4 | 2.1 |
| 9 | Current transfer receipts | 84.3 | 17.0 | −9.4 | −6.6 | 3.6 |
| 10 | Current surplus of government enterprises | −0.6 | −0.8 | 0.5 | −0.7 | 1.1 |
| 11 | Current expenditures | 7,580.2 | 82.0 | 65.9 | 182.7 | 83.9 |
| 12 | Consumption expenditures | 1,516.7 | 29.0 | −3.9 | 5.7 | 29.1 |
| 13 | National defense | 913.8 | 16.3 | −10.9 | 17.3 | 23.0 |
| 14 | Nondefense | 602.8 | 12.6 | 7.1 | −11.6 | 6.0 |
| 15 | Current transfer payments | 4,740.9 | 41.8 | 68.2 | 148.1 | 12.3 |
| 16 | Government social benefits | 3,690.6 | 57.2 | 135.5 | 131.6 | −4.7 |
| 17 | To persons | 3,652.0 | 57.8 | 132.8 | 130.5 | −5.0 |
| 18 | To the rest of the world | 38.6 | −0.6 | 2.7 | 1.1 | 0.3 |
| 19 | Other current transfer payments | 1,050.3 | −15.6 | −67.1 | 16.4 | 17.0 |
| 20 | Grants-in-aid to state and local governments | 1,002.2 | 2.6 | −26.6 | 18.1 | 28.4 |
| 21 | To the rest of the world | 48.1 | −18.1 | −40.5 | −1.7 | −11.4 |
| 22 | Interest payments | 1,199.2 | 9.4 | −11.4 | 16.7 | 38.3 |
| 23 | Subsidies | 123.4 | 1.9 | 13.0 | 12.2 | 4.2 |
| 24 | Net federal government saving | −1,810.6 | 21.0 | 13.6 | 28.3 | 82.0 |
| 25 | Social insurance funds | −853.9 | −19.9 | −60.8 | −103.8 | 15.5 |
| 26 | Other | −956.6 | 40.9 | 74.4 | 132.1 | 66.6 |
| Addenda: | ||||||
| 27 | Total receipts | 5,808.6 | 94.8 | 81.5 | 208.5 | 167.4 |
| 28 | Current receipts | 5,769.7 | 103.1 | 79.5 | 211.0 | 166.0 |
| 29 | Capital transfer receipts | 38.9 | −8.3 | 2.0 | −2.6 | 1.5 |
| 30 | Total expenditures | 7,766.8 | 108.4 | −32.7 | 144.9 | 81.2 |
| 31 | Current expenditures | 7,580.2 | 82.0 | 65.9 | 182.7 | 83.9 |
| 32 | Gross government investment | 473.1 | 3.2 | 3.7 | 0.9 | 4.3 |
| 33 | Capital transfer payments | 134.5 | 29.3 | −96.1 | −34.5 | 1.2 |
| 34 | Net purchases of nonproduced assets | −0.3 | 0.3 | −0.2 | 0.2 | −0.3 |
| 35 | Less: Consumption of fixed capital | 420.7 | 6.4 | 6.0 | 4.5 | 7.9 |
| 36 | Net lending or net borrowing (−) | −1,958.2 | −13.6 | 114.2 | 63.6 | 86.2 |
U.S. Bureau of Economic Analysis
Net state and local government saving was −$242.2 billion in the third quarter, decreasing $53.6 billion from −$188.6 billion in the second quarter. In the third quarter, current receipts decelerated, and current expenditures accelerated (table 3).
Net borrowing was $357.5 billion in the third quarter, increasing $51.7 billion from $305.8 billion in the second quarter.
- Personal current taxes (line 3) decelerated in the third quarter, increasing $9.7 billion after increasing $13.3 billion in the second quarter, reflecting a deceleration in state personal income taxes.
- Taxes on production and imports (line 4) accelerated in the third quarter, increasing $22.9 billion after increasing $16.7 billion in the second quarter, reflecting an acceleration in state excise taxes and local property taxes.
- Taxes on corporate income (line 5) decreased more in the third quarter, decreasing $16.3 billion after decreasing $1.4 billion in the second quarter.
- Federal grants-in-aid (line 9) accelerated in the third quarter, increasing $28.4 billion after decreasing $18.1 billion in the second quarter, reflecting an upturn in education grants. The upturn was partially offset by a downturn in income security grants.
- “Other current transfer receipts” (line 10) turned down in the third quarter, decreasing $1.0 billion after increasing $7.1 billion in the second quarter. Current transfer receipts from businesses turned down in the third quarter, reflecting a downturn in settlements paid by businesses to states.
- Consumption expenditures (line 13) accelerated in the third quarter, increasing $47.5 billion after increasing $21.3 billion in the second quarter, reflecting an upturn in spending on nondurable goods, specifically petroleum.
- Government social benefits (line 14) accelerated in the third quarter, increasing $54.6 billion after increasing $36.5 billion in the second quarter, reflecting an acceleration in Medicaid benefits.
- Capital transfer receipts (line 22) turned up in the third quarter, increasing $2.3 billion after decreasing $7.9 billion in the second quarter, reflecting the pattern of disaster benefits and an upturn in capital grants for housing and community services and transportation.
| Line | Level | Change from preceding quarter | ||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | ||||
| Q3 | Q4 | Q1 | Q2 | Q3 | ||
| 1 | Current receipts | 3,969.2 | 40.1 | 12.9 | 51.8 | 45.6 |
| 2 | Current tax receipts | 2,660.8 | 39.8 | 33.5 | 28.6 | 16.3 |
| 3 | Personal current taxes | 638.7 | 14.5 | 5.5 | 13.3 | 9.7 |
| 4 | Taxes on production and imports | 1,855.4 | 21.3 | 17.7 | 16.7 | 22.9 |
| 5 | Taxes on corporate income | 166.7 | 4.1 | 10.2 | −1.4 | −16.3 |
| 6 | Contributions for government social insurance | 29.5 | 0.7 | 0.3 | 0.4 | 0.5 |
| 7 | Income receipts on assets | 130.9 | 1.3 | 2.7 | 1.0 | 2.7 |
| 8 | Current transfer receipts | 1,200.1 | −0.5 | −22.9 | 25.2 | 27.4 |
| 9 | Federal grants-in-aid | 1,002.2 | 2.6 | −26.6 | 18.1 | 28.4 |
| 10 | Other | 197.9 | −3.1 | 3.7 | 7.1 | −1.0 |
| 11 | Current surplus of government enterprises | −52.2 | −1.3 | −0.6 | −3.5 | −1.4 |
| 12 | Current expenditures | 4,211.4 | 26.8 | 30.2 | 55.8 | 99.3 |
| 13 | Consumption expenditures | 2,691.8 | 20.6 | 37.4 | 21.3 | 47.5 |
| 14 | Government social benefits | 1,249.6 | 8.1 | −6.5 | 36.5 | 54.6 |
| 15 | Interest payments | 269.2 | −1.9 | −0.6 | −2.0 | −2.9 |
| 16 | Subsidies | 0.7 | 0.0 | 0.0 | 0.0 | 0.0 |
| 17 | Net state and local government saving | −242.2 | 13.3 | −17.5 | −4.0 | −53.6 |
| 18 | Social insurance funds | 2.9 | 0.0 | −0.4 | −0.2 | 0.0 |
| 19 | Other | −245.1 | 13.3 | −17.0 | −3.7 | −53.7 |
| Addenda: | ||||||
| 20 | Total receipts | 4,084.9 | 131.2 | −70.0 | 43.8 | 48.0 |
| 21 | Current receipts | 3,969.2 | 40.1 | 12.9 | 51.8 | 45.6 |
| 22 | Capital transfer receipts | 115.7 | 91.1 | −82.8 | −7.9 | 2.3 |
| 23 | Total expenditures | 4,442.4 | 39.8 | 23.3 | 64.1 | 99.7 |
| 24 | Current expenditures | 4,211.4 | 26.8 | 30.2 | 55.8 | 99.3 |
| 25 | Gross government investment | 642.9 | 11.1 | 7.7 | 13.4 | 6.7 |
| 26 | Capital transfer payments | ... | ... | ... | ... | ... |
| 27 | Net purchases of nonproduced assets | 22.7 | 0.4 | 0.4 | 0.4 | 0.4 |
| 28 | Less: Consumption of fixed capital | 434.6 | 4.3 | 5.1 | 5.5 | 6.7 |
| 29 | Net lending or net borrowing (−) | −357.5 | 91.3 | −93.1 | −20.4 | −51.7 |
- ...
- Data not available
U.S. Bureau of Economic Analysis
