Fact Sheet on Senate Budget Process: 98-280 GOV
Functional Categories of the Federal Budget
Bill Heniff Jr., Consultant in American National Government
Government and Finance Division
March 23, 1998
The President's budget
and the congressional budget
resolution classify federal budgetary activities into functional and subfunctional
categories that represent the major purposes of the federal government.
Each budgetary activity of the federal government, including budget authority, outlays, tax expenditures, and credit authority, is classified into
a subfunction based on the primary purpose it serves without regard to the agency or other unit responsible for
it. The functional
categories provide a broad statement of budget priorities and facilitate
the analysis of trends in related programs regardless of the type of financial transaction or agency organization.
The annual budget resolution sets forth spending
and credit amounts for each functional
category. The amounts are used for informational purposes in the
congressional budget process and are not enforced by points of order. Instead, amounts
in each functional
category are distributed to the various congressional committees
with jurisdiction over the spending and credit activities. The committee allocations made under Section 302
of the Congressional Budget
Act | P.L. 93-344 are enforceable through points of order on the floor of each house. In suballocating
their allocations, committees effectively may alter the functional distributions made in the budget resolution.
Historically, the use of functional classifications by the federal government
can be traced to the first appropriations act. The current function and subfunction classifications
have evolved over time. Under Section 1104| c of Title 31 U.S.C., the President may change the form of his budget
presentation. Any change in the functional
categories, however, must be made in consultation with the House
and Senate Appropriations Committees and Budget Committees. The General Accounting Office reviews budgetary classification
schemes, from time to time, and makes recommendations for change.|
1
A list of the 20 functional categories currently included
in the federal budget, as well as the subfunctions, is presented in Table 1. Generally, the first 17 functional categories reflect major policy areas, while the remaining three represent non-programmatic
elements of the budget that must be included to complete the presentation. Every budgetary account is assigned
an identification code, and the last three digits of these codes designate the subfunction into which it is classified.
Table 1. List of Functional and Subfunctional Categories
Functional categories
|
Subfunctional categories
|
National defense | 050 |
Department of Defense-Military | 051
Atomic energy defense activities | 053
Defense-related activities | 054 |
International affairs | 150 |
International development and humanitarian assistance | 151
International security assistance | 152
Conduct of foreign affairs | 153
Foreign information and exchange activities | 154
International financial programs | 155 |
General science, space, and technology | 250 |
General science and basic research | 251
Space flight, research, and supporting activities | 252 |
Energy | 270 |
Energy supply | 271
Energy conservation | 272
Emergency energy preparedness | 274
Energy information, policy, and regulation | 276 |
Natural resources and environment | 300 |
Water resources | 301
Conservation and land management | 302
Recreational resources | 303
Pollution control and abatement | 304
Other natural resources | 306 |
Agriculture | 350 |
Farm income stabilization | 351
Agricultural research and services | 352 |
Commerce and housing credit | 370 |
Mortgage credit | 371
Postal Service | 372
Deposit insurance | 373
Other advancement of commerce | 376 |
Transportation | 400 |
Ground transportation | 401
Air transportation | 402
Water transportation | 403
Other transportation | 407 |
Community and regional development | 450 |
Community development | 451
Area and regional development | 452
Disaster relief and insurance | 453 |
Education, training, employment, and social services | 500 |
Elementary, secondary, and vocational education | 501
Higher education | 502
Research and general education aids | 503
Training and employment | 504
Other labor services | 505
Social services | 506 |
Health | 550 |
Health care services | 551
Health research and training | 552
Consumer and occupational health and safety | 554 |
Medicare | 570 |
Medicare | 571 |
Income security | 600 |
General retirement and disability insurance | excl. social security
| 601
Federal employee retirement and disability | 602
Unemployment compensation | 603
Housing assistance | 604
Food and nutrition assistance | 605
Other income security | 609 |
Social security | 650 |
Social security | 651 |
Veterans benefits and services | 700 |
Income security for veterans | 701
Veterans education, training and rehabilitation | 702
Hospital and medical care for veterans | 703
Veterans housing | 704
Other veterans benefits and services | 705 |
Administration of justice | 750 |
Federal law enforcement activities | 751
Federal litigative and judicial activities | 752
Federal correctional activities | 753
Criminal justice assistance | 754 |
General government | 800 |
Legislative functions | 801
Executive direction and management | 802
Central fiscal operations | 803
General property and records management | 804
Central personnel management | 805
General purpose fiscal assistance | 806
Other general government | 808
Deductions for offsetting receipts | 809 |
Net interest | 900 |
Interest on the public debt | 901
Interest received by on-budget trust funds | 902
Interest received by off-budget trust funds | 903
Other interest | 908 |
Allowances | 920 |
Varies by year |
Undistributed offsetting receipts | 950 |
Employer share, employee retirement (on-budget) | 951
Employer share, employee retirement (off-budget) | 952
Rents and royalties on the Outer Continental Shelf | 953
Sale of major assets | 954
Other undistributed offsetting receipts | 959 |
1. For a recent GAO report on this topic, see:
Budget Function Classifications: Origins, Trends, and Implications
for Current Uses, GAO/AIMD-98-67, February 1998.
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