Financial Statements of the United States Government for the Fiscal Years Ended September 30, 2020, and 2019; Statements of Changes in Cash Balance from Budget and Other Activities (borrowing an extra $1t vs what was needed!)

U.S. Treasury Department ^ | April 13 2021 | N/A

[DoodleBob]

The primary purpose of these financial statements is to report how the annual budget deficit relates to the change in the government’s cash and other monetary assets, as well as federal debt and interest payable. It explains why the budget deficit normally would not result in an equivalent change in the government’s cash and other monetary assets.

These statements reconcile the budget deficit to the change in cash and other monetary assets during the fiscal year. They also serve to explain how the budget deficits were financed. These statements show the adjustments for non-cash outlays included in the budget, and items affecting the cash balance not included in the budget, to explain the change in cash and other monetary assets.

The budget deficit is primarily financed through borrowings from the public. When receipts exceed outlays, the difference is a surplus. The budget treats borrowing and debt repayment as a means of financing, not as receipts and outlays. The budget records outlays for the interest on the public issues of Treasury debt securities as the interest accrues, not when the cash is paid.

Non-cash flow amounts in the budget related to loan financing account activity also reflect intra-governmental transactions such as interest expense paid or interest revenue received from Treasury, entity year-end credit reform subsidy reestimates, and the receipt of subsidy expense from program accounts. Cash flow from non-budget activities related to loan financing account activity includes all cash flows to and from the public, including direct loan disbursements/default payments to lenders, fees collected, principal and interest repayments, collections on defaulted guarantee loans, and sale proceeds of foreclosed property. The budget totals exclude the transactions of the financing accounts because they are not a cost to the government. However, since loan financing accounts record all credit cash flows to and from the public, they affect the means of financing a budget deficit.

United States Government
Statements of Changes in Cash Balance from Budget and Other Activities
for the Years Ended September 30, 2020, and 2019

Table may scroll on smaller screens

(In billions of dollars)		2020	2019
Cash flow from budget activities
	Total budget receipts	3,420.0	3,462.2
	Total budget outlays	(6,551.9)	(4,446.6)
	Budget deficit	(3,131.9)	(984.4)
Adjustments for non-cash outlays included in the budget
Non-cash flow amounts in the budget related to federal debt securities
	Accrued interest	312.1	305.5
	Net amortization	40.9	65.7
	Other	63.1	(33.3)
	Subtotal - adjustments for non-cash flow amounts in the budget related to federal debt securities	416.1	337.9
Non-cash flow amounts in the budget related to loan financing account activity
	Interest revenue on uninvested funds	23.3	7.1
	Interest expense on entity borrowings	(57.6)	(43.2)
	Downward reestimates/negative subsidy payments	(28.9)	(22.8)
	Subsidy expense/upward reestimates	713.6	47.7
	Subtotal - adjustments for non-cash flow amounts in the budget related to loan financing account activity	650.4	(11.2)
Total of adjustments for non-cash outlays included in the budget		1,066.5	326.7
Cash flow from activities not included in the budget
Cash flow from non-budget activities related to federal debt securities
	Interest paid	(314.7)	(305.7)
	Subtotal - cash flow from non-budget activities related to federal debt securities	(314.7)	(305.7)
Cash flow from non-budget activities related to loan financing account activity
	Loan disbursements/default payments	(492.5)	(214.3)
	Fees	26.6	24.5
	Principal & interest repayments	112.0	125.9
	Other collections on defaulted loans receivable and sale of foreclosed property	4.3	4.5
	Subtotal - cash flow from non-budget activities related to loan financing account activity	(349.6)	(59.4)
Cash flow from financing federal debt securities
	Borrowings	18,969.1	11,813.4
	Repayments	(14,822.4)	(10,732.1)
	Discount/premium	(32.5)	(60.4)
	Subtotal - cash flow from financing federal debt securities	4,114.2	1,020.9
Total cash flow from activities not included in the budget		3,449.9	655.8
Other
Total other		17.8	19.0
Change in cash and other monetary assets balance		1,402.3	17.1
Beginning cash and other monetary assets balance		524.6	507.5
Ending cash and other monetary assets balance		1,926.9	524.6

[DoodleBob]

Here is the Cliffs Notes version, focusing on 2020.

The Budget Deficit was $3,131.9 billion. But the govt borrowed a net $4,114.2 billion. The sum of that $982.3 billion of borrowings in excess of deficit plus other things was a positive $1,402.3 billion.

Maybe the govt borrowed more in anticipation of additional 'stimulus.'

[DannyTN]

Possible motives for the additional borrowing:

• Additional stimulus
• Infrastructure package
• Anticipation of higher interest rates
• Anticipation of costs from legislation already passed.
• Ransoms
• More Vaccines
• More Covid costs
• Losing Congress in 2022
• UFO Distractions
• Hunter Biden Art Quid Pro Quos
• Biden quid pro quos
• Political persecutions
• Audit Fights
• Mail in ballots

[PGR88]

When receipts exceed outlays, the difference is a surplus.

What's a surplus, mommy? I've never heard of that.

[UnBubba]

A $3.13 trillion deficit in fiscal year 2020.

A trillion here, a trillion there, and pretty soon you're talking real money.

What a mess.

[circlecity]

Aren’t we on track for a 5 to 6 trillion deficit in 2021

[Wuli]

If a bank operated that way, the Treasury would have the DOJ prosecute the bank’s executives.

How can this legal criminality be stopped?

Constitutionally limit the government’s ability to extend its debt as a % of GDP.