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Major Categories of Federal Income and Outlays for Fiscal Year 2008 Income and Outlays. These pie charts show the relative sizes of the major categories of federal income and outlays for fiscal year 2008. Income Outlays Personal income taxes 39% Excise, customs, estate, gift, and miscellaneous taxes 6% Corporate income taxes 10% Social security, Medicare, and unemployment and other retirement taxes 30% Law enforcement and general government 2% Social security, Medicare, and other retirement 1 37% National defense, veterans, and foreign affairs 2 24% Net interest on the debt 8% Physical, human, and community development 3 9% Social programs 4 20% Borrowing to cover deficit 15% On or before the first Monday in February and outlays were $2.983 trillion, leaving a 3. Physical, human, and community of each year, the President is required by deficit of $459 billion. development: These outlays were for agri- law to submit to the Congress a budget culture; natural resources; environment; Footnotes for Certain Federal proposal for the fiscal year that begins the transportation; aid for elementary and sec- Outlays following October. The budget plan sets ondary education and direct assistance to forth the President’s proposed receipts, college students; job training; deposit in- 1. Social security, Medicare, and spending, and the surplus or deficit for the surance, commerce and housing credit, and other retirement: These programs provide Federal Government. The plan includes community development; and space, en- income support for the retired and disabled recommendations for new legislation as ergy, and general science programs. and medical care for the elderly. well as recommendations to change, elimi- 4. Social programs: About 14% of total 2. National defense, veterans, and for- nate, and add programs. After receiving the outlays were for Medicaid, food stamps, eign affairs: About 20% of outlays were to President’s proposal, the Congress reviews temporary assistance for needy families, equip, modernize, and pay our armed it and makes changes. It first passes a supplemental security income, and related forces and to fund national defense activi- budget resolution setting its own targets for programs; and the remaining outlays were ties; about 3% were for veterans benefits receipts, outlays, and the surplus or deficit. for health research and public health pro- and services; and about 1% were for inter- Next, individual spending and revenue bills grams, unemployment compensation, as- national activities, including military and that are consistent with the goals of the sisted housing, and social services. economic assistance to foreign countries budget resolution are enacted. and the maintenance of U.S. embassies In fiscal year 2008 (which began on Oc- abroad. tober 1, 2007, and ended on September 30, 2008), federal income was $2.524 trillion Note. The percentages on this page exclude undistributed offsetting receipts, which were $86 billion in fiscal year 2008. In the budget, these receipts are offset against spending in figuring the outlay totals shown above. These receipts are for the U.S. Government’s share of its employee retirement programs, rents and royalties on the Outer Continental Shelf, and proceeds from the sale of assets. - 100 -