Rising Cost of Government in the United States

Report Outline
Comparative Increases in Governmental Costs
Causes of Increased Federal Expenditure
Causes of Increased State and Local Expenditures

The budget to be presented by President Coolidge at the December session of Congress is expected to show a substantial increase over the $3,494,222,308 total of the budget submitted at the opening of the last session as the basis of appropriations for the fiscal year 1927. Thus a continued rise during 1928 in the cost of conducting the federal government is anticipated - for the fourth successive year since the low point in post-war expenditure was reached in 1924.

Expenditures during 1925 rose $22,965,731 above the total for the previous year. In 1926 there was a further increase of $55,344,427. Appropriations during the last session of Congress for the fiscal year 1927 were $273,603,305 in excess of the corresponding appropriations for the last fiscal year. It thus appears that the outgo of the federal government by the end of the present fiscal year will be some $350,000,000 in excess of the 1924 low, with further increases in prospect for 1928.

Increase in Federal Expenditure Since 1924

The continuous reduction in the outstanding national debt has been accompanied by steady reductions during recent years in the amounts paid out by the federal government as interest. Savings in interest payments have amounted during the last two fiscal years to $108,765,212. A further saving of $25,000,000 was estimated in the last budget for the current fiscal year.1 These savings have been more than absorbed by the increasing cost of conducting the government's current operations.