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District of Columbia – Government Finance

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Government finances play a pivotal role in shaping the local economy, influencing economic growth, stability, and the overall well-being of communities. The impact of government finances on the local economy can be analyzed through several key mechanisms, including public spending, taxation, debt management, and fiscal policies. These elements collectively determine the flow of resources, the level of economic activity, and the quality of life for residents.

  1. Public Spending and Investment One of the most direct ways government finances affect the local economy is through public spending. Governments allocate funds to infrastructure projects, education, healthcare, public safety, and social services. These investments create jobs, stimulate demand for goods and services, and enhance the productivity of the local workforce. For instance, building roads, bridges, and public transportation systems not only provides immediate employment opportunities but also improves connectivity, reducing transportation costs for businesses and facilitating trade. Similarly, investments in education and healthcare contribute to a skilled and healthy workforce, which is essential for long-term economic growth.

  2. Taxation Policies Taxation is another critical component of government finances that impacts the local economy. Taxes fund public services and infrastructure, but they also influence the behavior of individuals and businesses. High tax rates can discourage investment and consumption, potentially stifling economic growth. Conversely, low tax rates may attract businesses and stimulate spending but can lead to budget deficits if not managed properly. Progressive taxation, where higher-income individuals pay a larger share, can reduce income inequality and increase disposable income for lower-income households, boosting local demand for goods and services.

  3. Debt Management Government borrowing and debt management also have significant implications for the local economy. When governments borrow to finance deficits or invest in long-term projects, they can stimulate economic activity in the short term. However, excessive debt can lead to higher interest rates, crowding out private investment, and increasing the risk of financial instability. Effective debt management ensures that borrowing is sustainable and that funds are used efficiently to generate economic returns.

  4. Fiscal Policies Fiscal policies, including government spending and taxation, are tools used to manage economic cycles. During economic downturns, expansionary fiscal policies, such as increased spending and tax cuts, can stimulate demand and help the economy recover. Conversely, during periods of high inflation, contractionary fiscal policies, such as reduced spending and higher taxes, can help cool down the economy. The timing and effectiveness of these policies are crucial in stabilizing the local economy and maintaining public confidence.

  5. Social and Economic Equity Government finances also play a role in promoting social and economic equity. Redistributive policies, such as social welfare programs and subsidies, can reduce poverty and inequality, leading to a more inclusive economy. By providing a safety net for vulnerable populations, governments can ensure that all residents have access to basic needs, which in turn supports overall economic stability and growth.

  6. Conclusion In summary, government finances have a profound impact on the local economy through public spending, taxation, debt management, and fiscal policies. Effective management of these financial tools can stimulate economic growth, reduce inequality, and enhance the quality of life for residents. Conversely, poor financial management can lead to economic instability, reduced investment, and social unrest. Therefore, it is essential for governments to adopt prudent fiscal policies and ensure that financial resources are allocated efficiently and equitably to support sustainable economic development.

A key indicator for comparison is how much government collects, spends and and establishes debt for each resident under its perview.

The revenue per resident at the local level is:

28,694.06

The expenses per resident at the local level is:

32,203.12

The outstanding debt per resident at the local level is:

29,416.63

 
District of ColumbiaDistrict of ColumbiaNational



LocalLocalLocalLocalStateState
PerContri-PerContri-PerContri-
LocalPer CentStatePer CentCapitabutionNationalPer CentCapitabutionCapitabution
Description(,000's)Per Capitato Total(,000's)Per Capitato TotalIndexIndex(,000's)Per Capitato TotalIndexIndexIndexIndex

Revenue20,250,97628,694.06100.00918,2504,874.33100.005.891.0020,250,97628,694.06100.001.001.000.171.00

  General revenue19,738,25427,967.5797.47665,2893,531.5472.457.921.3519,738,25427,967.5797.471.001.000.130.74

    Intergovernmental revenue7,659,29610,852.6337.82420,0782,229.8945.754.870.837,659,29610,852.6337.821.001.000.211.21
      From Federal government7,464,20210,576.1936.8613,13169.701.43151.7325.787,464,20210,576.1936.861.001.000.010.04
      From State government195,094276.430.96406,9472,160.1944.320.130.02195,094276.430.961.001.007.8146.00
      From local government00.000.0000.010.000.000.0000.000.000.000.000.000.00

    General revenue from own sources12,078,95817,114.9459.65245,2111,301.6526.7013.152.2312,078,95817,114.9459.651.001.000.080.45
      Taxes10,077,56514,279.1349.76143,065759.4315.5818.803.1910,077,56514,279.1349.761.001.000.050.31
        Property2,908,1394,120.6114.36123,482655.4813.456.291.072,908,1394,120.6114.361.001.000.160.94
        Sales & gross receipts2,121,9283,006.6110.481,6158.570.18350.7159.582,121,9283,006.6110.481.001.000.000.02
          General sales1,708,7872,421.228.4400.010.00456,121.2377,482.371,708,7872,421.228.441.001.000.000.00
          Selective sales413,141585.392.041,6158.570.1868.2811.60413,141585.392.041.001.000.010.09
            Motor fuel sales22,92832.490.1100.010.006,120.101,039.6422,92832.490.111.001.000.000.00
            Alcoholic beverage sales6,9199.800.0300.010.001,846.87313.736,9199.800.031.001.000.000.00
            Tobacco product sales22,46531.830.1100.010.005,996.511,018.6422,46531.830.111.001.000.000.00
            Public utilities170,682241.840.841,2496.630.1436.486.20170,682241.840.841.001.000.030.16
            Other selective sales190,147269.420.943661.940.04138.6823.56190,147269.420.941.001.000.010.04
        Individual income tax3,116,9914,416.5315.3900.010.00832,008.77141,335.263,116,9914,416.5315.391.001.000.000.00
        Corporate income tax991,3221,404.634.9000.010.00264,610.5244,950.00991,3221,404.634.901.001.000.000.00
        Motor vehicle license59,00283.600.2900.010.0015,749.222,675.3659,00283.600.291.001.000.000.00
        Other taxes880,1831,247.154.3517,96895.381.9613.082.22880,1831,247.154.351.001.000.080.45

      Charges & misc general revenue2,001,3932,835.829.88102,146542.2211.125.230.892,001,3932,835.829.881.001.000.191.13
        Current charges960,0351,360.304.7477,324410.468.423.310.56960,0351,360.304.741.001.000.301.78
          Education28,50740.390.142,67914.220.292.840.4828,50740.390.141.001.000.352.07
            Institution of higher education25,02635.460.1200.010.006,680.111,134.7725,02635.460.121.001.000.000.00
            School lunch sales (gross)230.030.003291.750.040.020.00230.030.001.001.0053.59315.47
          Hospitals121,046171.510.6000.010.0032,310.435,488.65121,046171.510.601.001.000.000.00
          Highways2,3393.310.011,3857.350.150.450.082,3393.310.011.001.002.2213.06
          Air transportation (airports)00.000.0000.010.000.000.0000.000.000.000.000.000.00
          Parking facilities4,5996.520.021,3176.990.140.930.164,5996.520.021.001.001.076.32
          Sea and inland port facilities00.000.0000.010.000.000.0000.000.000.000.000.000.00
          Natural resources00.000.0000.010.000.000.0000.000.000.000.000.000.00
          Parks and recreation25,65036.340.138884.710.107.711.3125,65036.340.131.001.000.130.76
          Housing and comm development50,44571.480.251,4497.690.169.291.5850,44571.480.251.001.000.110.63
          Sewerage448,146634.992.2142,792227.154.662.800.47448,146634.992.211.001.000.362.11
          Solid waste management7,24910.270.0410,86557.671.180.180.037,24910.270.041.001.005.6233.05
          Other charges272,054385.481.3415,94984.661.744.550.77272,054385.481.341.001.000.221.29

        Miscellaneous general revenue1,041,3581,475.525.1424,822131.762.7011.201.901,041,3581,475.525.141.001.000.090.53
          Interest earnings55,11178.090.272,34312.440.266.281.0755,11178.090.271.001.000.160.94
          Special assessments4,8436.860.0210,47755.611.140.120.024,8436.860.021.001.008.1047.71
          Sale of property30,14642.710.154842.570.0516.632.8230,14642.710.151.001.000.060.35
          Other general revenue951,2581,347.864.7011,51861.141.2522.053.74951,2581,347.864.701.001.000.050.27

  Utility revenue512,722726.492.53252,9611,342.7927.550.540.09512,722726.492.531.001.001.8510.88
    Water supply255,977362.701.2615,24980.951.664.480.76255,977362.701.261.001.000.221.31
    Electric power00.000.00237,7121,261.8425.890.000.0000.000.000.000.00890,550.915,242,472.10
    Gas supply00.000.0000.010.000.000.0000.000.000.000.000.000.00
    Transit256,745363.791.2700.010.0068,532.1511,641.72256,745363.791.271.001.000.000.00

  Liquor store revenue00.000.0000.010.000.000.0000.000.000.000.000.000.00

  Insurance trust revenue162,858230.760.8000.010.0043,471.187,384.55162,858230.760.801.001.000.000.00
    Unemployment compensation162,858230.760.8000.010.0043,471.187,384.55162,858230.760.801.001.000.000.00
    Employee retirement00.000.0000.010.000.000.0000.000.000.000.000.000.00
    Workers' compensation00.000.0000.010.000.000.0000.000.000.000.000.000.00
    Other insurance trust revenue00.000.0000.010.000.000.0000.000.000.000.000.000.00

Expenditure22,727,51232,203.12100.00895,0734,751.30100.006.781.0022,727,51232,203.12100.001.001.000.151.00

  Intergovernmental expenditure00.000.0000.010.000.000.0000.000.000.000.000.000.00
  Direct expenditure22,727,51232,203.12100.00895,0734,751.30100.006.781.0022,727,51232,203.12100.001.001.000.151.00
    Current operation18,968,26726,876.5683.46802,8974,262.0089.706.310.9318,968,26726,876.5683.461.001.000.161.07
    Capital outlay2,959,2564,193.0413.0282,559438.259.229.571.412,959,2564,193.0413.021.001.000.100.71
      Construction2,959,2564,193.0413.0282,559438.259.229.571.412,959,2564,193.0413.021.001.000.100.71
    Assistance and subsidies-5,069-7.18-0.0200.010.00-1,353.05-199.63-5,069-7.18-0.021.001.00-0.00-0.00
    Interest on debt805,0581,140.703.549,61751.051.0722.343.30805,0581,140.703.541.001.000.040.30
    Insurance benefits and repayments39,99456.670.1800.010.0010,675.471,575.0839,99456.670.181.001.000.000.00
    Exhibit: salaries & wages1,814,1412,570.507.98229,4411,217.9425.632.110.311,814,1412,570.507.981.001.000.473.21

  Direct expenditure by function22,727,51232,203.12100.00895,0734,751.30100.006.781.0022,727,51232,203.12100.001.001.000.151.00
    Direct general expenditure19,232,15427,250.4784.62676,3093,590.0475.567.591.1219,232,15427,250.4784.621.001.000.130.89
      Capital outlay1,568,7432,222.796.9065,307346.677.306.410.951,568,7432,222.796.901.001.000.161.06


Education services:
      Other direct general expenditure17,663,41125,027.6877.72611,0023,243.3768.267.721.1417,663,41125,027.6877.721.001.000.130.88
      Education3,822,3545,415.9816.82487,9932,590.4054.522.090.313,822,3545,415.9816.821.001.000.483.24
          Capital outlay283,867402.221.2523,721125.922.653.190.47283,867402.221.251.001.000.312.12
        Higher education192,450272.690.8500.010.0051,370.087,579.22192,450272.690.851.001.000.000.00
          Capital outlay18,65826.440.0800.010.004,980.32734.8018,65826.440.081.001.000.000.00
        Elementary & Secondary education3,634,9735,150.4715.99487,9932,590.4054.521.990.293,634,9735,150.4715.991.001.000.503.41
          Capital outlay265,209375.781.1723,721125.922.652.980.44265,209375.781.171.001.000.342.27
        Other education-5,069-7.18-0.0200.010.00-1,353.05-199.63-5,069-7.18-0.021.001.00-0.00-0.00
      Libraries89,794127.230.404,56924.250.515.250.7789,794127.230.401.001.000.191.29


Social services and income maintenance:
      Public welfare5,314,1007,529.6723.38100.050.00141,847.6320,928.415,314,1007,529.6723.381.001.000.000.00
        Other public welfare5,314,1007,529.6723.38100.050.00141,847.6320,928.415,314,1007,529.6723.381.001.000.000.00
      Hospitals281,660399.091.2400.010.0075,182.6311,092.56281,660399.091.241.001.000.000.00
        Capital outlay10,26314.540.0500.010.002,739.47404.1910,26314.540.051.001.000.000.00
      Health999,8191,416.674.407,66340.680.8634.835.14999,8191,416.674.401.001.000.030.19
      Social insurance administration35,94750.930.1600.010.009,595.221,415.6935,94750.930.161.001.000.000.00
      Veterans' services00.000.0000.010.000.000.0000.000.000.000.000.000.00

Transportaion:
      Highways657,215931.222.896,95136.900.7825.243.72657,215931.222.891.001.000.040.27
        Capital outlay504,544714.902.229855.230.11136.7320.17504,544714.902.221.001.000.010.05
      Air transportation (airports)00.000.0000.010.000.000.0000.000.000.000.000.000.00
      Parking facilities35,89150.850.163331.770.0428.774.2435,89150.850.161.001.000.030.24
      Sea and inland port facilities00.000.0000.010.000.000.0000.000.000.000.000.000.00

Public safety:
      Police protection672,157952.392.9643,472230.764.864.130.61672,157952.392.961.001.000.241.64
      Fire protection379,189537.281.671,2286.520.1482.4212.16379,189537.281.671.001.000.010.08
      Correction280,618397.611.2300.010.0074,904.5011,051.52280,618397.611.231.001.000.000.00
        Capital outlay6,6749.460.0300.010.001,781.47262.846,6749.460.031.001.000.000.00
      Protective inspection & regulation154,936219.530.683,95320.980.4410.461.54154,936219.530.681.001.000.100.65

Environment and housing:
      Natural resources139,409197.530.616753.580.0855.138.13139,409197.530.611.001.000.020.12
        Capital outlay2,0832.950.01120.060.0046.336.842,0832.950.011.001.000.020.15
      Parks and recreation280,886397.991.243,79620.150.4219.752.91280,886397.991.241.001.000.050.34
        Capital outlay60,18985.280.265172.740.0631.084.5860,18985.280.261.001.000.030.22
      Housing and comm development1,260,2521,785.685.559,67651.361.0834.775.131,260,2521,785.685.551.001.000.030.19
      Sewerage384,087544.221.6943,593231.404.872.350.35384,087544.221.691.001.000.432.88
        Capital outlay187,691265.940.8321,938116.452.452.280.34187,691265.940.831.001.000.442.97
      Solid waste management191,493271.330.8410,65756.571.194.800.71191,493271.330.841.001.000.211.41
        Capital outlay26,72337.860.124422.350.0516.142.3826,72337.860.121.001.000.060.42

Governmental administration:
      Financial administration868,2931,230.303.827,07137.530.7932.784.84868,2931,230.303.821.001.000.030.21
      Judicial and legal278,005393.911.22430.230.001,725.74254.62278,005393.911.221.001.000.000.00
      General public buildings179,953254.980.792,35712.510.2620.383.01179,953254.980.791.001.000.050.33
      Other governmental administration312,395442.641.3711,23159.621.257.421.10312,395442.641.371.001.000.130.91
      Interest on general debt664,292941.252.925,25727.910.5933.734.98664,292941.252.921.001.000.030.20

General expenditures, n.e.c.:
      Misc commercial activities00.000.0000.010.000.000.0000.000.000.000.000.000.00
      Other and unallocable1,949,4092,762.168.5825,781136.852.8820.182.981,949,4092,762.168.581.001.000.050.34

Utility expenditures:
    Utility expenditure3,495,3584,952.6515.38218,7641,161.2624.444.260.633,495,3584,952.6515.381.001.000.231.59
        Capital outlay1,390,5131,970.256.1217,25291.581.9321.513.171,390,5131,970.256.121.001.000.050.32
      Water supply396,436561.721.7413,00369.021.458.141.20396,436561.721.741.001.000.120.83
      Electric power00.000.00205,7611,092.2422.990.000.0000.000.000.000.00770,851.475,224,641.56
      Gas supply00.000.0000.010.000.000.0000.000.000.000.000.000.00
      Transit3,098,9224,390.9313.6400.010.00827,185.67122,044.223,098,9224,390.9313.641.001.000.000.00

Liquor store expenditures:
    Liquor store expenditure00.000.0000.010.000.000.0000.000.000.000.000.000.00

Insurance trust expenditures:
    Insurance trust expenditure39,99456.670.1800.010.0010,675.471,575.0839,99456.670.181.001.000.000.00
      Unemployment compensation39,99456.670.1800.010.0010,675.471,575.0839,99456.670.181.001.000.000.00
      Employee retirement00.000.0000.010.000.000.0000.000.000.000.000.000.00
      Workers' compensation00.000.0000.010.000.000.0000.000.000.000.000.000.00
      Other insurance trust00.000.0000.010.000.000.0000.000.000.000.000.000.00

Debt outstanding20,760,93329,416.63100.00404,9842,149.77100.0013.681.0020,760,93329,416.63100.001.001.000.071.00

  Short-term debt outstanding100,152141.910.4800.010.0026,733.261,953.67100,152141.910.481.001.000.000.00
  Long-term debt outstanding20,660,78129,274.7299.52404,9842,149.77100.0013.621.0020,660,78129,274.7299.521.001.000.071.00

Long-term debt issued3,697,721NANA67,197NANANANA3,697,721NANANANANANA
Long-term debt retired2,468,333NANA17,682NANANANA2,468,333NANANANANANA


Sources: STI: PopStats and STI: Colossus