A_AT1 Citizen_NN1 's_GE Guide_NN1 to_II the_AT Fiscal_JJ Year_NNT1 2010_MC Financial_JJ Report_NN1 of_IO the_AT United_NP1 States_NP1 Government_NN1 OVERVIEW_NN1 The_AT Citizen_NN1 's_GE Guide_NN1 to_II the_AT Fiscal_JJ Year_NNT1 (_( FY_NP1 )_) 2010_MC Financial_JJ Report_NN1 of_IO the_AT U.S._NP1 Government_NN1 presents_VVZ the_AT Nation_NN1 's_GE financial_JJ position_NN1 and_CC condition_NN1 of_IO the_AT U.S._NP1 Government_NN1 and_CC discusses_VVZ key_JJ financial_JJ topics_NN2 ,_, including_II continuing_VVG economic_JJ recovery_NN1 efforts_NN2 and_CC fiscal_JJ sustainability_NN1 ._. 
Despite_II the_AT severe_JJ economic_JJ downturn_NN1 and_CC recession_NN1 that_CST began_VVD at_II the_AT end_NN1 of_IO 2007_MC ,_, the_AT instability_NN1 of_IO the_AT financial_JJ markets_NN2 in_II 2008_MC ,_, and_CC the_AT necessary_JJ measures_NN2 taken_VVN to_TO help_VVI the_AT economy_NN1 recover_VV0 in_II 2008_MC and_CC 2009_MC ,_, the_AT economy_NN1 began_VVD to_TO grow_VVI again_RT in_II FY_NP1 2010_MC ._. 
After_II falling_VVG by_II 2.7_MC percent_NNU during_II FY_NP1 2009_MC ,_, real_JJ Gross_JJ Domestic_JJ Product_NN1 (_( GDP_NN1 )_) 1_MC1 rose_NN1 at_II an_AT1 average_JJ annual_JJ rate_NN1 of_IO 3.2_MC percent_NNU over_II the_AT four_MC quarters_NN2 of_IO FY_NP1 2010_MC ;_; the_AT economy_NN1 added_VVD 691,000_MC private_JJ nonfarm_NN1 payroll_NN1 jobs_NN2 during_II FY_NP1 2010_MC ,_, after_II losing_VVG 6.3_MC million_NNO private_JJ jobs_NN2 from_II private_JJ nonfarm_NN1 payrolls_NN2 during_II FY_NP1 2009_MC ._. 
Increased_JJ Federal_JJ tax_NN1 receipts_NN2 and_CC a_AT1 decline_NN1 in_II outlays_NN2 resulted_VVN in_II a_AT1 narrowing_NN1 of_IO the_AT primarily_RR cash-based_JJ U.S._NP1 budget_NN1 deficit_NN1 from_II $1.4_NNU trillion_NNO to_II $1.3_NNU trillion_NNO in_II FY_NP1 2010_MC while_CS net_JJ operating_NN1 cost_NN1 increased_VVD significantly_RR from_II $1.3_NNU trillion_NNO to_II $2.1_NNU trillion_NNO due_JJ in_II large_JJ part_NN1 to_II increased_JJ estimated_JJ costs_NN2 for_IF federal_JJ employee_NN1 and_CC veteran_JJ benefits_NN2 ._. 
Some_DD Government_NN1 programs_NN2 act_VV0 as_RG "_" automatic_JJ stabilizers_NN2 ,_, "_" helping_VVG to_TO support_VVI the_AT economy_NN1 during_II a_AT1 downturn_NN1 by_II increasing_JJ spending_NN1 and_CC reducing_VVG tax_NN1 collections_NN2 ._. 
This_DD1 support_NN1 is_VBZ "_" automatic_JJ "_" because_CS increased_JJ spending_NN1 on_II programs_NN2 like_II unemployment_NN1 benefits_NN2 ,_, Social_JJ Security_NN1 ,_, and_CC Medicaid_NP1 and_CC a_AT1 reduction_NN1 in_II tax_NN1 receipts_NN2 happen_VV0 even_RR without_IW any_DD legislative_JJ changes_NN2 in_II policies_NN2 ._. 
These_DD2 automatic_JJ economy_NN1 recovers_VVZ ._. 
Policies_NN2 enacted_VVD to_TO foster_VVI economic_JJ recovery_NN1 ,_, including_II the_AT Housing_NN1 and_CC Economic_JJ Recovery_NN1 Act_NN1 of_IO 2008_MC (_( HERA_NP1 )_) ,_, the_AT Emergency_NN1 Economic_JJ Stabilization_NN1 Act_NN1 of_IO 2008_MC (_( EESA_NP1 )_) ,_, and_CC the_AT American_JJ Recovery_NN1 and_CC Reinvestment_NP1 Act_NN1 of_IO 2009_MC (_( Recovery_NN1 Act_NN1 or_CC ARRA_NP1 )_) ,_, continue_VV0 to_TO affect_VVI the_AT Government_NN1 's_GE financial_JJ position_NN1 ._. 
Implementation_NN1 of_IO these_DD2 and_CC other_JJ initiatives_NN2 represent_VV0 unprecedented_JJ efforts_NN2 to_TO stabilize_VVI the_AT financial_JJ markets_NN2 ,_, jump-start_NN1 the_AT Nation_NN1 's_GE economy_NN1 ,_, and_CC create_VV0 or_CC save_CS millions_NNO2 of_IO jobs_NN2 ._. 
Already_RR ,_, the_AT Government_NN1 and_CC the_AT taxpayer_NN1 have_VH0 begun_VVN to_TO see_VVI returns_NN2 on_II some_DD of_IO these_DD2 investments_NN2 as_CSA evidenced_VVN by_II substantial_JJ repayments_NN2 made_VVN under_II the_AT Troubled_JJ Assets_NN2 Relief_NN1 Program_NN1 (_( TARP_NP1 )_) ._. 
While_CS the_AT Government_NN1 's_GE immediate_JJ priority_NN1 is_VBZ to_TO continue_VVI to_TO foster_VVI economic_JJ recovery_NN1 ,_, there_EX are_VBR longer_JJR term_NN1 fiscal_JJ challenges_NN2 that_CST must_VM ultimately_RR be_VBI addressed_VVN ._. 
Persistent_JJ growth_NN1 of_IO health_NN1 care_NN1 costs_NN2 and_CC the_AT aging_NN1 of_IO the_AT population_NN1 due_II21 to_II22 the_AT retirement_NN1 of_IO the_AT "_" baby_NN1 boom_NN1 "_" generation_NN1 and_CC increasing_JJ longevity_NN1 will_VM make_VVI it_PPH1 increasingly_RR difficult_JJ to_TO fund_VVI critical_JJ social_JJ programs_NN2 ,_, including_VVG notably_RR Medicare_NP1 ,_, Medicaid_NP1 ,_, and_CC Social_JJ Security_NN1 ._. 
Chart_NN1 2_MC shows_VVZ this_DD1 growing_JJ gap_NN1 between_II receipts_NN2 and_CC total_JJ spending_NN1 ,_, indicating_VVG that_CST ,_, as_CSA currently_RR structured_VVN ,_, the_AT Government_NN1 's_GE fiscal_JJ path_NN1 can_VM not_XX be_VBI sustained_VVN indefinitely_RR (_( see_VV0 Chart_NN1 2_MC )_) ._. 
This_DD1 Guide_NN1 highlights_VVZ important_JJ information_NN1 contained_VVN in_II the_AT 2010_MC Financial_JJ Report_NN1 of_IO the_AT United_NP1 States_NP1 Government_NN1 ._. 
The_AT Secretary_NN1 of_IO the_AT Treasury_NN1 ,_, Director_NN1 of_IO the_AT Office_NN1 of_IO Management_NN1 and_CC Budget_NN1 (_( OMB_NP1 )_) ,_, and_CC Acting_VVG Comptroller_NN1 General_NN1 of_IO the_AT United_NP1 States_NP1 believe_VV0 that_CST the_AT information_NN1 discussed_VVN in_II this_DD1 Guide_NN1 is_VBZ important_JJ to_II all_DB Americans_NN2 ._. 
The_AT Economy_NN1 The_AT economy_NN1 began_VVD to_TO grow_VVI again_RT during_II FY_NP1 2010_MC ,_, after_II emerging_VVG in_II FY_NP1 2009_MC from_II the_AT longest_JJT and_CC deepest_JJT recession_NN1 since_CS World_NN1 War_NN1 II_MC ._. 
Although_CS the_AT residential_JJ homebuilding_NN1 sector_NN1 slumped_VVD further_RRR during_II much_DA1 of_IO fiscal_JJ year_NNT1 2010_MC ,_, nonresidential_JJ investment_NN1 and_CC consumer_NN1 spending_NN1 increased_VVD ._. 
The_AT economy_NN1 began_VVD adding_VVG jobs_NN2 consistently_RR in_II January_NPM1 2010_MC ,_, and_CC during_II FY_NP1 2010_MC ,_, added_VVD 691,000_MC private_JJ nonfarm_NN1 payroll_NN1 jobs_NN2 (_( after_II losing_VVG 6.3_MC million_NNO private_JJ jobs_NN2 from_II private_JJ nonfarm_NN1 payrolls_NN2 during_II the_AT previous_JJ fiscal_JJ year_NNT1 )_) ._. 
Overall_JJ inflation_NN1 turned_VVD positive_JJ over_II the_AT course_NN1 of_IO the_AT year_NNT1 ,_, as_CSA energy_NN1 prices_NN2 increased_VVN ,_, but_CCB remained_VVD well_RR in_II check_NN1 ,_, reflecting_VVG persistent_JJ slack_NN1 in_II the_AT economy_NN1 ._. 
The_AT core_NN1 inflation_NN1 rate_NN1 (_( which_DDQ excludes_VVZ food_NN1 and_CC energy_NN1 )_) remained_VVD positive_JJ ,_, but_CCB slowed_VVD to_II half_DB the_AT rate_NN1 of_IO the_AT previous_JJ fiscal_JJ year_NNT1 ._. 
Real_JJ wages_NN2 rose_VVD ,_, but_CCB at_II a_AT1 much_RR slower_JJR pace_NN1 than_CSN in_II FY_NP1 2009_MC ,_, due_II21 to_II22 the_AT combination_NN1 of_IO slower_JJR nominal_JJ wage_NN1 growth_NN1 and_CC rising_VVG consumer_NN1 prices_NN2 ._. 
The_AT level_NN1 of_IO corporate_JJ profits_NN2 increased_VVN in_II FY_NP1 2010_MC over_II the_AT previous_JJ fiscal_JJ year_NNT1 ,_, though_CS on_II a_AT1 quarterly_JJ basis_NN1 ,_, profits_NN2 rose_VVD faster_RRR during_II the_AT first_MD half_NN1 of_IO the_AT fiscal_JJ year_NNT1 than_CSN the_AT latter_DA half_NN1 ._. 
Federal_JJ tax_NN1 receipts_NN2 rose_VVD and_CC spending_VVG growth_NN1 declined_VVD ,_, such_CS21 that_CS22 in_II FY_NP1 2010_MC ,_, the_AT budget_NN1 deficit_NN1 narrowed_VVN to_II $1,294_NNU billion_NNO or_CC 8.9_MC percent_NNU of_IO GDP_NN1 ._. 
The_AT economy_NN1 continued_VVD to_TO receive_VVI significant_JJ support_NN1 during_II the_AT fiscal_JJ year_NNT1 by_II a_AT1 wide_JJ variety_NN1 of_IO measures_NN2 implemented_VVN under_II the_AT Recovery_NN1 Act_NN1 ,_, which_DDQ authorizes_VVZ the_AT Government_NN1 to_TO spend_VVI $787_NNU billion_NNO towards_II stimulating_JJ domestic_JJ demand_NN1 ._. 
What_DDQ Came_VVD In_RP and_CC What_DDQ Went_VVD Out_RP What_DDQ came_VVD in_RP ?_? 
Total_JJ Government_NN1 revenues_NN2 (_( calculated_VVN using_VVG a_AT1 modified_JJ cash_NN1 basis_NN1 of_IO accounting_NN1 )_) remained_VVD relatively_RR unchanged_JJ ,_, increasing_VVG by_II just_RR over_RG $18_NNU billion_NNO to_TO remain_VVI at_II about_RG $2.2_NNU trillion_NNO in_II FY_NP1 2010_MC as_II the_AT economy_NN1 continues_VVZ to_TO recover_VVI ._. 
Chart_NN1 3_MC shows_VVZ that_CST corporate_JJ tax_NN1 revenue_NN1 rebounded_VVD during_II FY_NP1 2010_MC ,_, increasing_VVG by_II nearly_RR 40_MC percent_NNU ,_, after_II decreasing_VVG by_II more_DAR than_CSN 50_MC percent_NNU during_II FY_NP1 2009_MC ._. 
However_RR ,_, in_II dollar_NNU1 terms_NN2 ,_, the_AT $49.3_NNU billion_NNO corporate_JJ tax_NN1 increase_NN1 and_CC a_AT1 slight_JJ increase_NN1 in_II other_JJ tax_NN1 revenue_NN1 was_VBDZ partially_RR offset_VVN by_II a_AT1 slight_JJ decrease_NN1 (_( 2.4_MC percent_NNU or_CC $42.1_NNU billion_NNO )_) in_II personal_JJ income_NN1 tax_NN1 revenue_NN1 to_TO keep_VVI total_JJ revenues_NN2 relatively_RR stable_JJ ._. 
Together_RL ,_, personal_JJ and_CC corporate_JJ taxes_NN2 accounted_VVN for_IF about_RG 86_MC percent_NNU of_IO total_JJ revenues_NN2 ._. 
What_DDQ went_VVD out_RP ?_? 
To_TO derive_VVI its_APPGE net_JJ cost_NN1 (_( $4.3_NNU trillion_NNO in_II FY_NP1 2010_MC )_) ,_, the_AT Government_NN1 subtracts_VVZ revenues_NN2 earned_VVN from_II Government_NN1 programs_NN2 (_( e.g._REX ,_, Medicare_NP1 premiums_NN2 ,_, National_JJ Park_NN1 entry_NN1 fees_NN2 ,_, and_CC postal_JJ service_NN1 fees_NN2 )_) from_II its_APPGE gross_JJ costs_NN2 ._. 
Chart_NN1 4_MC shows_VVZ that_CST the_AT largest_JJT contributors_NN2 to_II the_AT Government_NN1 's_GE net_JJ cost_NN1 in_II recent_JJ years_NNT2 consistently_RR include_VV0 the_AT Departments_NN2 of_IO Health_NN1 and_CC Human_JJ Services_NN2 (_( HHS_NP1 )_) and_CC Defense_NN1 (_( DoD_NP1 )_) and_CC the_AT Social_JJ Security_NN1 Administration_NN1 (_( SSA_NP1 )_) ._. 
The_AT bulk_NN1 of_IO HHS_NP1 and_CC SSA_NP1 costs_NN2 are_VBR attributable_JJ to_II major_JJ social_JJ insurance_NN1 and_CC postemployment_NN1 benefits_NN2 programs_NN2 administered_VVN by_II those_DD2 agencies_NN2 ._. 
Similarly_RR ,_, much_DA1 of_IO DoD_NP1 's_GE costs_NN2 are_VBR also_RR associated_VVN with_IW its_APPGE Military_JJ Retirement_NN1 Fund_NN1 ,_, as_II31 well_II32 as_II33 its_APPGE current_JJ operations_NN2 ._. 
In_II fact_NN1 ,_, across_II the_AT Government_NN1 ,_, just_RR the_AT change_NN1 in_II actuarial_JJ and_CC other_JJ estimated_JJ costs_NN2 associated_VVN with_IW the_AT change_NN1 in_II estimated_JJ postemployment_NN1 benefit_NN1 ,_, accounted_VVN for_IF more_DAR than_CSN $538_NNU billion_NNO or_CC 62_MC percent_NNU of_IO the_AT total_JJ change_NN1 in_II the_AT Government_NN1 's_GE net_JJ cost_NN1 of_IO $861.3_NNU billion_NNO for_IF FY_NP1 2010_MC ._. 
Further_RRR ,_, the_AT long-term_JJ nature_NN1 of_IO these_DD2 costs_NN2 and_CC their_APPGE sensitivity_NN1 to_II a_AT1 wide_JJ range_NN1 of_IO complex_JJ assumptions_NN2 can_VM ,_, in_II some_DD cases_NN2 ,_, cause_VV0 significant_JJ fluctuation_NN1 in_II agency_NN1 and_CC Governmentwide_JJ costs_NN2 from_II year_NNT1 to_II year_NNT1 ._. 
Chart_NN1 4_MC shows_VVZ that_CST this_DD1 has_VHZ been_VBN the_AT case_NN1 at_II VA_FW in_II its_APPGE administration_NN1 of_IO veterans_NN2 benefit_VV0 programs_NN2 where_RRQ an_AT1 actuarial_JJ cost_NN1 decrease_NN1 of_IO more_DAR than_CSN $480_NNU billion_NNO in_II FY_NP1 2009_MC was_VBDZ followed_VVN by_II a_AT1 $373_NNU billion_NNO increase_NN1 in_II FY_NP1 2010_MC ._. 
At_II VA_FW and_CC other_JJ agencies_NN2 that_CST administer_VV0 postemployment_NN1 benefit_NN1 programs_NN2 ,_, these_DD2 fluctuations_NN2 are_VBR attributable_JJ to_II an_AT1 array_NN1 of_IO assumptions_NN2 and_CC variables_NN2 including_II interest_NN1 rates_NN2 ,_, inflation_NN1 ,_, beneficiary_NN1 eligibility_NN1 ,_, life_NN1 expectancy_NN1 ,_, and_CC cost_NN1 of_IO living_NN1 ._. 
As_II such_DA ,_, in_II FY_NP1 2010_MC ,_, a_AT1 new_JJ Federal_JJ accounting_NN1 standard2_FO requires_VVZ agencies_NN2 to_TO separately_RR identify_VVI the_AT gains_NN2 and_CC losses_NN2 associated_VVN with_IW changes_NN2 in_II assumptions_NN2 and_CC use_VV0 a_AT1 more_RGR standardized_JJ approach_NN1 to_TO calculate_VVI them_PPHO2 ._. 
Finally_RR ,_, Chart_NN1 4_MC shows_VVZ that_CST the_AT Treasury_NN1 Department_NN1 's_GE administration_NN1 of_IO many_DA2 of_IO the_AT recently_RR implemented_VVN economic_JJ recovery_NN1 programs_NN2 makes_VVZ it_PPH1 another_DD1 significant_JJ contributor_NN1 to_TO total_VVI Government_NN1 costs_NN2 ._. 
Altogether_RR ,_, the_AT agencies_NN2 reflected_VVN in_II Chart_NN1 4_MC account_VV0 for_IF nearly_RR three-fourths_MF of_IO total_JJ Government_NN1 net_NN1 cost_NN1 ._. 
To_TO arrive_VVI at_II the_AT Government_NN1 's_GE "_" bottom_JJ line_NN1 "_" net_NN1 operating_NN1 cost_NN1 ,_, the_AT Government_NN1 subtracts_VVZ taxes_NN2 and_CC other_JJ revenues_NN2 (_( Chart_NN1 3_MC )_) from_II its_APPGE net_JJ cost_NN1 ._. 
A_AT1 nearly_RR 25_MC percent_NNU increase_NN1 in_II net_JJ cost_NN1 ,_, combined_VVN with_IW relatively_RR constant_JJ revenues_NN2 of_IO $2.2_NNU trillion_NNO ,_, translated_VVN into_II two-thirds_MF increase_VV0 in_II the_AT Government_NN1 's_GE "_" bottom_JJ line_NN1 "_" net_NN1 operating_NN1 cost_NN1 from_II $1.3_NNU trillion_NNO in_II FY_NP1 2009_MC to_II $2.1_NNU trillion_NNO in_II FY_NP1 2010_MC ._. 
Cost_VV0 vs_II ._. 
Deficit_NN1 :_: What_DDQ 's_VBZ the_AT Difference_NN1 ?_? 
The_AT Budget_NN1 of_IO the_AT United_NP1 States_NP1 Government_NN1 (_( President_NN1 's_GE Budget_NN1 )_) is_VBZ the_AT Government_NN1 's_GE primary_JJ financial_JJ planning_NN1 and_CC control_NN1 tool_NN1 ._. 
It_PPH1 describes_VVZ how_RRQ the_AT Government_NN1 spent_VVN and_CC plans_VVZ to_TO spend_VVI the_AT public_NN1 's_GE money_NN1 ,_, comparing_VVG receipts_NN2 ,_, or_CC cash_NN1 received_VVN by_II the_AT Government_NN1 ,_, with_IW outlays_NN2 ,_, or_CC payments_NN2 made_VVN by_II the_AT Government_NN1 to_II the_AT public_NN1 ._. 
Outlays_NN2 are_VBR measured_VVN primarily_RR on_II a_AT1 cash_NN1 basis_NN1 and_CC receipts_NN2 are_VBR measured_VVN on_II a_AT1 purely_RR cash_VV0 basis_NN1 ._. 
The_AT Financial_JJ Report_NN1 of_IO the_AT United_NP1 States_NP1 Government_NN1 (_( Financial_NP1 Report_NN1 )_) reports_VVZ on_II the_AT Government_NN1 's_GE accrual-based_JJ costs_NN2 ,_, the_AT sources_NN2 used_VMK to_TO finance_VVI those_DD2 costs_NN2 ,_, how_RRQ much_RR the_AT Government_NN1 owns_VVZ and_CC owes_VVZ ,_, and_CC the_AT outlook_NN1 for_IF fiscal_JJ sustainability_NN1 ._. 
It_PPH1 compares_VVZ the_AT Government_NN1 's_GE revenues_NN2 ,_, or_CC amounts_NN2 that_CST the_AT Government_NN1 has_VHZ collected_VVN and_CC expects_VVZ to_TO collect_VVI ,_, but_CCB has_VHZ not_XX necessarily_RR received_VVN ,_, with_IW its_APPGE costs_NN2 (_( recognized_VVN when_CS owed_VVN ,_, but_CCB not_XX necessarily_RR paid_VVN )_) to_TO derive_VVI net_JJ operating_NN1 cost_NN1 ._. 
Together_RL ,_, the_AT President_NN1 's_GE Budget_NN1 and_CC the_AT Financial_JJ Report_NN1 present_NN1 a_AT1 complementary_JJ perspective_NN1 on_II the_AT Nation_NN1 's_GE financial_JJ health_NN1 and_CC provide_VV0 a_AT1 valuable_JJ decision-making_NN1 and_CC management_NN1 tool_NN1 for_IF the_AT country_NN1 's_GE leaders_NN2 ._. 
Table_NN1 1_MC1 on_II the_AT previous_JJ page_NN1 shows_VVZ that_CST ,_, for_IF FY_NP1 2010_MC ,_, the_AT major_JJ differences_NN2 between_II deficit_NN1 and_CC cost_NN1 are_VBR amounts_NN2 reported_VVN in_II the_AT Financial_JJ Report_NN1 for_IF anticipated_JJ changes_NN2 in_II amounts_NN2 the_AT Government_NN1 will_VM owe_VVI for_IF Federal_JJ employee_NN1 and_CC veteran_JJ benefits_NN2 ,_, as_II31 well_II32 as_II33 anticipated_JJ future_JJ investments_NN2 in_II Government_NN1 Sponsored_JJ Enterprises_NN2 (_( GSEs_NP2 )_) ,_, specifically_RR Fannie_NP1 Mae_NP1 and_CC Freddie_NP1 Mac_NP1 ._. 
What_DDQ We_PPIS2 Own_VV0 and_CC What_DDQ We_PPIS2 Owe_VV0 Chart_NN1 5_MC is_VBZ a_AT1 summary_NN1 of_IO what_DDQ the_AT Government_NN1 owns_VVZ in_II assets_NN2 and_CC what_DDQ it_PPH1 owes_VVZ in_II liabilities_NN2 ._. 
As_II21 of_II22 September_NPM1 30_MC ,_, 2010_MC ,_, the_AT Government_NN1 held_VVN about_RG $2.9_NNU trillion_NNO in_II assets_NN2 ,_, comprised_VVD mostly_RR of_IO net_JJ property_NN1 ,_, plant_NN1 ,_, and_CC equipment_NN1 (_( $828.9_NNU billion_NNO in_II FY_NP1 2010_MC )_) and_CC a_AT1 combined_JJ total_NN1 of_IO $942.5_NNU billion_NNO in_II net_JJ loans_NN2 receivable_JJ and_CC investments_NN2 ._. 
During_II FY_NP1 2010_MC ,_, the_AT Government_NN1 's_GE total_JJ assets_NN2 increased_VVN by_II $215.9_NNU billion_NNO ,_, due_JJ mostly_RR to_II a_AT1 nearly_RR $100_NNU billion_NNO increase_NN1 in_II net_JJ loans_NN2 receivable_JJ and_CC investments_NN2 ._. 
As_CSA indicated_VVN in_II Chart_NN1 5_MC ,_, the_AT Government_NN1 's_GE largest_JJT liabilities_NN2 are_VBR :_: (_( 1_MC1 )_) Federal_JJ debt_NN1 held_VVN by_II the_AT public_NN1 and_CC accrued_JJ interest_NN1 ,_, the_AT balance_NN1 of_IO which_DDQ increased_VVD from_II $7.6_NNU trillion_NNO to_II $9.1_NNU trillion_NNO during_II FY_NP1 2010_MC due_JJ primarily_RR to_II the_AT continued_JJ need_NN1 to_TO fund_VVI the_AT budget_NN1 deficit_NN1 ,_, and_CC (_( 2_MC )_) Federal_JJ employee_NN1 postemployment_NN1 and_CC veteran_JJ benefits_NN2 payable_JJ ,_, which_DDQ increased_VVD during_II FY_NP1 2010_MC ,_, from_II $5.3_NNU trillion_NNO to_II $5.7_NNU trillion_NNO ._. 
In_II31 addition_II32 to_II33 debt_NN1 held_VVN by_II the_AT public_NN1 ,_, the_AT Government_NN1 reports_VVZ about_RG $4.6_NNU trillion_NNO of_IO intragovernmental_JJ debt_NN1 outstanding_JJ ,_, which_DDQ arises_VVZ when_RRQ one_MC1 part_NN1 of_IO the_AT Government_NN1 borrows_VVZ from_II another_DD1 ._. 
It_PPH1 represents_VVZ debt_NN1 held_VVN by_II Government_NN1 funds_NN2 ,_, including_II the_AT Social_JJ Security_NN1 and_CC Medicare_NP1 trust_NN1 funds_NN2 ,_, which_DDQ are_VBR typically_RR required_VVN to_TO invest_VVI any_DD excess_JJ annual_JJ receipts_NN2 in_II Federal_JJ debt_NN1 securities_NN2 ._. 
Because_CS these_DD2 amounts_NN2 are_VBR both_DB2 liabilities_NN2 of_IO the_AT Treasury_NN1 and_CC assets_NN2 of_IO the_AT Government_NN1 trust_NN1 funds_NN2 ,_, they_PPHS2 are_VBR eliminated_VVN in_II the_AT consolidation_NN1 process_NN1 for_IF the_AT Governmentwide_JJ financial_JJ statements_NN2 ._. 
The_AT sum_NN1 of_IO debt_NN1 held_VVN by_II the_AT public_NN1 and_CC intragovernmental_JJ debt_NN1 equals_VVZ gross_JJ Federal_JJ debt_NN1 (_( $13.7_NNU trillion_NNO as_II21 of_II22 September_NPM1 30_MC ,_, 2010_MC )_) ,_, which_DDQ (_( with_IW some_DD adjustments_NN2 )_) is_VBZ subject_II21 to_II22 a_AT1 statutory_JJ ceiling_NN1 (_( i.e._REX ,_, the_AT debt_NN1 limit_NN1 )_) ._. 
As_II21 of_II22 September_NPM1 30_MC ,_, 2010_MC ,_, the_AT debt_NN1 limit_NN1 was_VBDZ $14.3_NNU trillion_NNO ,_, having_VHG been_VBN raised_VVN multiple_JJ times_NNT2 in_II recent_JJ years_NNT2 ._. 
If_CS budget_NN1 deficits_NN2 continue_VV0 to_TO occur_VVI ,_, the_AT Government_NN1 will_VM have_VHI to_TO borrow_VVI more_RRR from_II the_AT public_NN1 ._. 
Instances_NN2 where_RRQ the_AT debt_NN1 held_VVN by_II the_AT public_NN1 increases_VVZ faster_JJR than_CSN the_AT economy_NN1 for_IF extended_JJ periods_NN2 can_VM pose_VVI additional_JJ challenges_NN2 ._. 
The_AT remainder_NN1 of_IO this_DD1 Guide_NN1 examines_VVZ these_DD2 and_CC other_JJ indicators_NN2 of_IO the_AT challenges_NN2 the_AT Government_NN1 will_VM face_VVI in_II maintaining_VVG long-term_JJ fiscal_JJ sustainability_NN1 ._. 
The_AT Economic_JJ Recovery_NN1 Effort_NN1 Since_CS the_AT financial_JJ crisis_NN1 in_II 2008_MC ,_, the_AT Treasury_NN1 Department_NN1 ,_, the_AT Federal_JJ Reserve_NN1 ,_, the_AT Federal_JJ Deposit_NN1 Insurance_NN1 Corporation_NN1 (_( FDIC_NP1 )_) ,_, and_CC other_JJ U.S._NP1 Government_NN1 bodies_NN2 have_VH0 taken_VVN actions_NN2 to_TO help_VVI stabilize_VVI financial_JJ markets_NN2 and_CC pave_VV0 the_AT way_NN1 for_IF sustained_JJ economic_JJ recovery_NN1 ._. 
The_AT Housing_NN1 and_CC Economic_JJ Recovery_NN1 Act_NN1 of_IO 2008_MC (_( HERA_NP1 )_) established_VVD the_AT Federal_JJ Housing_NN1 Finance_NN1 Agency_NN1 (_( FHFA_NP1 )_) ,_, to_TO regulate_VVI the_AT housing_NN1 Government-Sponsored_JJ Enterprises_NN2 (_( GSEs_NP2 )_) ,_, including_II Fannie_NP1 Mae_NP1 and_CC Freddie_NP1 Mac_NP1 ._. 
HERA_NP1 also_RR authorized_VVN the_AT Treasury_NN1 Department_NN1 to_TO provide_VVI financial_JJ support_NN1 for_IF the_AT housing_NN1 GSEs_VVZ through_II such_DA programs_NN2 as_CSA the_AT Senior_JJ Preferred_JJ Stock_NN1 Purchase_NN1 Agreements_NN2 (_( SPSPA_NP1 )_) program_NN1 ,_, which_DDQ provides_VVZ that_CST the_AT Government_NN1 will_VM make_VVI funding_NN1 advances_VVZ to_II Fannie_NP1 Mae_NP1 and_CC Freddie_NP1 Mac_NP1 as_CSA needed_VVN to_TO ensure_VVI that_CST the_AT GSEs_NP2 have_VH0 sufficient_JJ assets_NN2 to_TO support_VVI their_APPGE liabilities_NN2 ;_; and_CC the_AT GSE-guaranteed_JJ mortgage-backed_JJ securities_NN2 (_( MBS_NNU2 )_) purchase_VV0 program_NN1 (_( which_DDQ was_VBDZ terminated_VVN as_II21 of_II22 December_NPM1 31_MC ,_, 2009_MC )_) ._. 
