Government Receipts and Expenditures
Fourth Quarter 2025
Net government saving, the difference between current receipts and current expenditures in the federal government and state and local governments, was −$1,879.6 billion in the fourth quarter of 2025, increasing $149.2 billion from −$2,028.8 billion in the third 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 $2,117.5 billion in the fourth quarter, decreasing $174.3 billion from $2,291.8 billion in the third quarter (charts 3 and 4 and table 1).
| Line | Level | Change from preceding quarter | ||||
|---|---|---|---|---|---|---|
| 2025 | 2025 | |||||
| Q4 | Q1 | Q2 | Q3 | Q4 | ||
| 1 | Current receipts | 8,951.7 | 119.0 | 244.7 | 207.1 | 191.1 |
| 2 | Current expenditures | 10,831.3 | 122.9 | 220.4 | 154.7 | 41.9 |
| 3 | Net government saving | −1,879.6 | −3.8 | 24.2 | 52.4 | 149.2 |
| 4 | Federal | −1,664.2 | 13.6 | 28.3 | 106.0 | 122.4 |
| 5 | State and local | −215.5 | −17.5 | −4.0 | −53.6 | 26.7 |
| 6 | Net lending or net borrowing (−) | −2,117.5 | 21.0 | 43.3 | 58.4 | 174.3 |
| 7 | Federal | −1,809.1 | 114.2 | 63.6 | 110.1 | 125.2 |
| 8 | State and local | −308.5 | −93.1 | −20.4 | −51.7 | 49.0 |
U.S. Bureau of Economic Analysis
Net federal government saving was −$1,664.2 billion in the fourth quarter, increasing $122.4 billion from −$1,786.6 billion in the third quarter (table 2). In the fourth quarter, current receipts and current expenditures decelerated.
Federal government net borrowing was $1,809.1 billion in the fourth quarter, decreasing $125.2 billion from $1,934.3 billion in the third quarter.
- Personal current taxes (line 3) decelerated in the fourth quarter, increasing $36.4 billion after increasing $57.7 billion in the third quarter, reflecting a deceleration in both withheld and nonwithheld income taxes.
- Taxes on production and imports (line 4) decelerated in the fourth quarter, increasing $33.1 billion after increasing $63.6 billion in the third quarter. Customs duties decelerated, increasing $32.9 billion after increasing $63.7 billion.
- Taxes on corporate income (line 5) decelerated in the fourth quarter, increasing $33.2 billion after increasing $38.8 billion in the third quarter.
- Contributions for government social insurance (line 7) decelerated in the fourth quarter, increasing $21.1 billion after increasing $25.6 billion in the third quarter, reflecting the pattern of wages.
- Current transfer receipts (line 9) turned down in the fourth quarter, decreasing $1.7 billion after increasing $3.6 billion in the third quarter, more than accounted for by a downturn in fines and settlements paid by domestic businesses.
- Consumption expenditures (line 12) turned down in the fourth quarter, decreasing $18.8 billion after increasing $29.1 billion, reflecting downturns in national defense (line 13) and nondefense (line 14) consumption expenditures. The downturn in national defense consumption expenditures was driven by a downturn in spending for defense services and civilian compensation. The downturn in nondefense consumption expenditures reflects a larger decrease in compensation of general government employees and a downturn in spending for nondefense services.
- Government social benefits to persons (line 17) turned up in the fourth quarter, increasing $33.9 after decreasing $5.0 billion in the third quarter. The upturn reflects an upturn in Social Security benefits.
- Grants-in-aid to state and local governments (line 20) turned down in the fourth quarter, decreasing $9.5 billion after increasing $28.4 billion in the third quarter, reflecting a deceleration in Medicaid grants as well as a downturn in grants for education programs.
- “Other current transfer payments” to the rest of the world (line 21) decreased less in the fourth quarter, decreasing $2.9 billion after decreasing $11.4 billion reflecting a smaller decrease in aid to the rest of the world.
- Interest payments (line 22) decelerated in the fourth quarter, increasing $28.3 billion after increasing $38.3 billion in the third quarter, reflecting a deceleration in interest paid on public issues of debt.
- Subsidies (line 23) turned down in the fourth quarter, decreasing $27.5 billion after increasing $4.2 billion in the third quarter. The downturn reflected a downturn in agricultural subsidies, following the pattern of economic assistance payments to farmers authorized by the American Relief Act of 2025.
| Line | Level | Change from preceding quarter | ||||
|---|---|---|---|---|---|---|
| 2025 | 2025 | |||||
| Q4 | Q1 | Q2 | Q3 | Q4 | ||
| 1 | Current receipts | 5,919.5 | 79.5 | 211.0 | 189.9 | 125.9 |
| 2 | Current tax receipts | 3,717.9 | 44.0 | 209.0 | 157.5 | 105.3 |
| 3 | Personal current taxes | 2,666.0 | 75.5 | 33.6 | 57.7 | 36.4 |
| 4 | Taxes on production and imports | 467.3 | 8.7 | 172.0 | 63.6 | 33.1 |
| 5 | Taxes on corporate income | 541.7 | −39.4 | 0.5 | 38.8 | 33.2 |
| 6 | Taxes from the rest of the world | 42.9 | −0.9 | 2.8 | −2.6 | 2.7 |
| 7 | Contributions for government social insurance | 2,029.6 | 36.4 | 8.9 | 25.6 | 21.1 |
| 8 | Income receipts on assets | 91.0 | 8.2 | 0.4 | 2.1 | 2.1 |
| 9 | Current transfer receipts | 82.6 | −9.4 | −6.6 | 3.6 | −1.7 |
| 10 | Current surplus of government enterprises | −1.7 | 0.5 | −0.7 | 1.1 | −1.1 |
| 11 | Current expenditures | 7,583.7 | 65.9 | 182.7 | 83.9 | 3.5 |
| 12 | Consumption expenditures | 1,497.9 | −3.9 | 5.7 | 29.1 | −18.8 |
| 13 | National defense | 909.4 | −10.9 | 17.3 | 23.0 | −4.4 |
| 14 | Nondefense | 588.5 | 7.1 | −11.6 | 6.0 | −14.3 |
| 15 | Current transfer payments | 4,762.4 | 68.2 | 148.1 | 12.3 | 21.5 |
| 16 | Government social benefits | 3,724.5 | 135.5 | 131.6 | −4.7 | 33.9 |
| 17 | To persons | 3,685.9 | 132.8 | 130.5 | −5.0 | 33.9 |
| 18 | To the rest of the world | 38.6 | 2.7 | 1.1 | 0.3 | 0.0 |
| 19 | Other current transfer payments | 1,037.9 | −67.1 | 16.4 | 17.0 | −12.4 |
| 20 | Grants-in-aid to state and local governments | 992.7 | −26.6 | 18.1 | 28.4 | −9.5 |
| 21 | To the rest of the world | 45.2 | −40.5 | −1.7 | −11.4 | −2.9 |
| 22 | Interest payments | 1,227.5 | −11.4 | 16.7 | 38.3 | 28.3 |
| 23 | Subsidies | 95.9 | 13.0 | 12.2 | 4.2 | −27.5 |
| 24 | Net federal government saving | −1,664.2 | 13.6 | 28.3 | 106.0 | 122.4 |
| 25 | Social insurance funds | −855.4 | −60.8 | −103.8 | 25.8 | −11.8 |
| 26 | Other | −808.7 | 74.4 | 132.1 | 80.2 | 134.3 |
| Addenda: | ||||||
| 27 | Total receipts | 5,962.0 | 81.5 | 208.5 | 191.3 | 129.5 |
| 28 | Current receipts | 5,919.5 | 79.5 | 211.0 | 189.9 | 125.9 |
| 29 | Capital transfer receipts | 42.5 | 2.0 | −2.6 | 1.5 | 3.6 |
| 30 | Total expenditures | 7,771.1 | −32.7 | 144.9 | 81.2 | 4.3 |
| 31 | Current expenditures | 7,583.7 | 65.9 | 182.7 | 83.9 | 3.5 |
| 32 | Gross government investment | 474.0 | 3.7 | 0.9 | 4.3 | 0.9 |
| 33 | Capital transfer payments | 142.2 | −96.1 | −34.5 | 1.2 | 7.7 |
| 34 | Net purchases of nonproduced assets | −0.1 | −0.2 | 0.2 | −0.3 | 0.2 |
| 35 | Less: Consumption of fixed capital | 428.6 | 6.0 | 4.5 | 7.9 | 7.9 |
| 36 | Net lending or net borrowing (−) | −1,809.1 | 114.2 | 63.6 | 110.1 | 125.2 |
U.S. Bureau of Economic Analysis
Net state and local government saving was −$215.5 billion in the fourth quarter, increasing $26.7 billion from −$242.2 billion in the third quarter. In the fourth quarter, current receipts accelerated and current expenditures decelerated (table 3).
Net borrowing was $308.5 billion in the fourth quarter, decreasing $49.0 billion from $357.5 billion in the third quarter.
- Personal current taxes (line 3) accelerated in the fourth quarter, increasing $18.9 billion after increasing $9.7 billion in the third quarter, reflecting an acceleration in state personal income taxes.
- Taxes on corporate income (line 5) turned up in the fourth quarter, increasing $19.6 billion after decreasing $16.3 billion in the third quarter.
- Federal grants-in-aid (line 9) turned down in the fourth quarter, decreasing $9.5 billion in the fourth quarter after increasing $28.4 billion in the third quarter, reflecting a deceleration in Medicaid grants as well as a downturn in grants for education programs.
- Consumption expenditures (line 13) decelerated in the fourth quarter, increasing $26.3 billion after increasing $47.5 billion in the third quarter, reflecting a deceleration in spending on nondurable goods, specifically petroleum.
- Government social benefits (line 14) decelerated in the fourth quarter, increasing $6.5 billion after increasing $54.6 billion in the third quarter, reflecting a deceleration in Medicaid spending.
- Capital transfer receipts (line 22) accelerated in the fourth quarter, increasing $27.7 billion after increasing $2.3 billion in the third quarter, reflecting a settlement.
| Line | Level | Change from preceding quarter | ||||
|---|---|---|---|---|---|---|
| 2025 | 2025 | |||||
| Q4 | Q1 | Q2 | Q3 | Q4 | ||
| 1 | Current receipts | 4,025.0 | 12.9 | 51.8 | 45.6 | 55.8 |
| 2 | Current tax receipts | 2,724.6 | 33.5 | 28.6 | 16.3 | 63.8 |
| 3 | Personal current taxes | 657.6 | 5.5 | 13.3 | 9.7 | 18.9 |
| 4 | Taxes on production and imports | 1,880.8 | 17.7 | 16.7 | 22.9 | 25.4 |
| 5 | Taxes on corporate income | 186.3 | 10.2 | −1.4 | −16.3 | 19.6 |
| 6 | Contributions for government social insurance | 30.2 | 0.3 | 0.4 | 0.5 | 0.7 |
| 7 | Income receipts on assets | 134.3 | 2.7 | 1.0 | 2.7 | 3.4 |
| 8 | Current transfer receipts | 1,190.7 | −22.9 | 25.2 | 27.4 | −9.4 |
| 9 | Federal grants-in-aid | 992.7 | −26.6 | 18.1 | 28.4 | −9.5 |
| 10 | Other | 198.0 | 3.7 | 7.1 | −1.0 | 0.1 |
| 11 | Current surplus of government enterprises | −54.9 | −0.6 | −3.5 | −1.4 | −2.7 |
| 12 | Current expenditures | 4,240.4 | 30.2 | 55.8 | 99.3 | 29.0 |
| 13 | Consumption expenditures | 2,718.1 | 37.4 | 21.3 | 47.5 | 26.3 |
| 14 | Government social benefits | 1,256.1 | −6.5 | 36.5 | 54.6 | 6.5 |
| 15 | Interest payments | 265.5 | −0.6 | −2.0 | −2.9 | −3.7 |
| 16 | Subsidies | 0.7 | 0.0 | 0.0 | 0.0 | 0.0 |
| 17 | Net state and local government saving | −215.5 | −17.5 | −4.0 | −53.6 | 26.7 |
| 18 | Social insurance funds | 3.3 | −0.4 | −0.2 | 0.0 | 0.4 |
| 19 | Other | −218.7 | −17.0 | −3.7 | −53.7 | 26.4 |
| Addenda: | ||||||
| 20 | Total receipts | 4,168.4 | −70.0 | 43.8 | 48.0 | 83.5 |
| 21 | Current receipts | 4,025.0 | 12.9 | 51.8 | 45.6 | 55.8 |
| 22 | Capital transfer receipts | 143.4 | −82.8 | −7.9 | 2.3 | 27.7 |
| 23 | Total expenditures | 4,476.8 | 23.3 | 64.1 | 99.7 | 34.4 |
| 24 | Current expenditures | 4,240.4 | 30.2 | 55.8 | 99.3 | 29.0 |
| 25 | Gross government investment | 653.6 | 7.7 | 13.4 | 6.7 | 10.7 |
| 26 | Capital transfer payments | ... | ... | ... | ... | ... |
| 27 | Net purchases of nonproduced assets | 23.2 | 0.4 | 0.4 | 0.4 | 0.5 |
| 28 | Less: Consumption of fixed capital | 441.8 | 5.1 | 5.5 | 6.7 | 7.2 |
| 29 | Net lending or net borrowing (−) | −308.5 | −93.1 | −20.4 | −51.7 | 49.0 |
- ...
- Data not available
U.S. Bureau of Economic Analysis
