Rising Cost of Government in the United States

November 15, 1926

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.

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
Budget and the Economy