Federal Revenues and Expenditures

October 2, 1930

Report Outline
Federal Revenues and Expenditures, 1920–1930
Prospects of the Fiscal Year 1931
Foreign Repayments and the Public Debt
Special Focus

The first quarter of the fiscal year 1931, ended September 30, 1930, was marked by a continuation of the upward trend of federal expenditures which has been in evidence since 1927, and by a sharp drop in federal revenues. The total revenues of the government showed a decline of 14.4 per cent during the quarter, by comparison with the first quarter of last year, while federal expenditures were up 4.0 per cent.

On the basis of receipts and expenditures during the first half of the quarter, ended August 15, 1930, the statement was made by a “high Treasury official,” (later publicly identified as Secretary Mellon), that the Treasury had little hope of being able to recommend a continuation through 1931 of the reductions in income taxes voted by Congress last December. It was said at the same time that “hope has not been abandoned for maintaining: the tax level of the 1928 Revenue Act on corporation and individual incomes.” In other words, there was still hope that an increase in the rates as they stood prior to the 1929 reduction might be avoided.

A federal deficit of large proportions appeared to be in the making at the time these views were expressed. Federal expenditures during the first six weeks of the present fiscal year had exceeded those of the like period of last year by about 8 per cent, while federal revenues had slumped more than 20 per cent. During the second half of the quarter, as shown in the following table, there was a slowing down of the rate of decline in federal revenues, accompanied by a curtailment of federal expenditures, but a deficit was still indicated for the full year's operations.

ISSUE TRACKER for Related Reports
Federal Budget and National Debt
Sep. 01, 2017  National Debt
Jul. 12, 2013  Government Spending
May 15, 2012  State Capitalism
Mar. 18, 2011  National Debt
Nov. 14, 2008  The National Debt
Dec. 09, 2005  Budget Deficit
Apr. 13, 2001  Budget Surplus
Feb. 01, 1991  Recession's Regional Impact
Jan. 20, 1984  Federal Budget Deficit
Sep. 09, 1977  Federal Reorganization and Budget Reform
Nov. 24, 1972  Limits on Federal Spending
Jan. 08, 1969  Federal Budget Making
Dec. 06, 1967  National Debt Management
Aug. 01, 1962  Fiscal and Budget Policy
Nov. 27, 1957  National Debt Limit
Mar. 20, 1957  Spending Controls
Dec. 24, 1953  Public Debt Limit
Feb. 13, 1952  Tax and Debt Limitation
Nov. 30, 1949  Government Spending
Jan. 06, 1948  Legislative Budget-Making
May 23, 1944  The National Debt
Feb. 01, 1943  The Executive Budget and Appropriations by Congress
Dec. 27, 1939  Revision of the Federal Budget System
Oct. 10, 1938  The Outstanding Government Debt
Nov. 20, 1937  Budget Balancing vs. Pump Priming
May 02, 1936  The Deficit and the Public Debt
Oct. 19, 1934  The Federal Budget and the Public Debt
Feb. 10, 1933  Extraordinary Budgeting of Federal Finances
Dec. 01, 1932  Reduction of Federal Expenditures
Dec. 01, 1930  The National Budget System
Oct. 02, 1930  Federal Revenues and Expenditures
Nov. 02, 1927  The Public Debt and Foreign Loans
Nov. 15, 1926  Rising Cost of Government in the United States
Feb. 05, 1925  Four Years Under the Budget System
Deficit, Federal Debt, and Balanced Budget