The National Taxpayers Union Foundation (NTUF) has released a new report Revealing Hidden Spending in Federal Budget Reports. The authors, NTUF Associate Policy Analyst Daniella Sánchez and NTUF Vice President of Research Demian Brady, reveal a significant discrepancy between reported federal spending and its actual size due to “hidden spending” from offsetting receipts and user fees.
Gross outlays refer to total levels of government spending before accounting for any offsetting receipts. Net outlays represent gross outlays minus the aforementioned offsetting receipts, financed entirely by taxes or new debt. The gross outlay totals provide a clearer picture of the true cost of government.
Gross outlays increased by around 6 percent per year between 2000 and 2023. The average level of gross spending surged by 59 percent, escalating from $2.7 trillion to $4.32 trillion annually, offsetting collections masked 12 percent of “hidden” spending
President Joe Biden’s budget proposal for the 2025 fiscal year includes massive increases in federal taxes and spending totaling $7.3 trillion. But that figure is misleadingly low. The actual projected spending level exceeds $8 trillion — $740 billion more than what is reported as the top-line spending level.
Unfortunately, Congress is unwilling to address rampant overspending, with net outlays expected to reach $6.9 trillion and $7.3 trillion in 2024 and 2025, respectively.
Taxpayers deserve greater transparency in budget reporting is needed to provide a clearer understanding of the true scope of the federal government.
To speak with Demian Brady about the hidden spending in the federal budget, Contact Courtney Manley, NTUF Communications Manager at 703-299-8671 or at Courtney.manley@ntu.org.