Approximately how much does the u.s. government spend annually on procuring goods and services?
Where We Are NowResults in BriefThe “Nation by the Numbers” table on the preceding page and the following summarize key metrics about the federal government’s financial position for and during FY 2021: Show
The Federal Government’s Response to the PandemicOn March 11, 2020, a novel strain of the Coronavirus (COVID-19) was declared a pandemic by the WHO. A national emergency was declared in the U.S. on March 13, 2020. The global spread of COVID-19, which continued through FY 2021, resulted in a severe global health and economic crisis. During FY 2020 and FY 2021, the federal government took broad action to protect public health from the effects of the unprecedented pandemic, enacting several major pieces of legislation, including:
These laws address the health and economic effects of COVID-19, providing assistance to American workers and families, small businesses, and state, local, and tribal governments, and preserving jobs for American industry. As indicated here and in the Financial Report, these essential programs had significant effects on the federal government’s budgetary and financial results. Source: Appropriation Warrants. See Note 30—COVID-19 Activity and Agency Financial Reports for additional information. Chart 1 summarizes the more than $4.8 trillion in appropriations (net of rescissions) enacted through September 30, 2021 (i.e., during FY 2020 and FY 2021) for several key agencies, which include, but are not limited to:
The financial effects of the government’s response to the COVID-19 pandemic were broad, impacting many agencies in a variety of ways and to varying degrees. The Financial Report includes discussion and analysis of the significant impact that the federal government’s response to the COVID-19 pandemic had on the government’s financial statements for FY 2021. Additional information can be obtained from individual agency financial statements. Comparing the Budget and the Financial ReportThe Budget and the Financial Report present complementary perspectives on the government’s financial position and condition.
Chart 2 compares the government’s budget deficit (receipts vs. outlays) and net operating cost (revenues vs. costs) for FYs 2017 - 2021. During FY 2021:
The $319.3 billion difference between the budget deficit and net operating cost is primarily due to accrued costs (incurred but not necessarily paid) that are included in net operating cost, but not the budget deficit, primarily costs related to increases in estimated federal employee and veteran benefits liabilities. Other sources of differences include, but are not limited to increases in taxes receivable and the value of investments in GSE, as well as increases in advances largely associated with the government’s pandemic response and timing differences related to the recording of credit reform costs. Costs and RevenuesThe government’s “bottom line” net operating cost decreased $746.5 billion (19.4 percent) during FY 2021 to $3.1 trillion. It is calculated as follows:
Assets and LiabilitiesChart 5 summarizes the assets and liabilities that the government reports on its Balance Sheet. As of September 30, 2021:
See Note 30—COVID-19 Activity, as well as the referenced agencies’ FY 2021 financial statements for additional information. See Note 31—Subsequent Events for information about events that occurred after the end of the fiscal year that may affect the government’s financial results. Key Economic TrendsAn analysis of U.S. economic performance provides useful background when evaluating the government’s financial statements. During the last two fiscal years, the economy’s performance has been deeply affected by the COVID-19 global pandemic as well as the U.S. government’s extensive measures to provide fiscal support. Over the course of FY 2021, the economy grew briskly, continuing the recovery begun during the previous fiscal year. These and other economic and financial developments are discussed in greater detail in the Financial Report. Last modified 03/29/22 How much does the US spend on procurement?The Government Accountability Office found agencies spent $584 billion on procurement last year, up... Agencies spent more on procurement in fiscal 2019 than in any of the previous 10 years.
How much does the federal government spend on goods and services?In Fiscal Year 2021, federal spending was equal to 30% of the total gross domestic product (GDP), or economic activity, of the United States that year ($22.39 trillion).
How much did the US government spend in 2020?The federal government spent a record $6.5 trillion in fiscal 2020, according to data released Friday by the Treasury Department, eclipsing the previous spending record of $4.5 trillion set last year.
What does the US government spend the most money on?Nearly 60 percent of mandatory spending in 2019 was for Social Security and other income support programs (figure 3). Most of the remainder paid for the two major government health programs, Medicare and Medicaid.
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