Show FEDERAL OUTLAY TRENDS Fiscal Year Yur Fiscal Year Yur 1974 1914 1978 1918 Estimated NET INTEREST NET INTEREST r I I I I 1 6 NATIONAL DEFENSE DEFENSE 16 A OTHER OTHER FEDERAL I GRANTS TO 10 STATES FEDERAL 1 GRANTS TO STATES OPERATIONS AND LOCALITIES OPERATIONS AND LOCALITIES This chart graphically graph portrays a percentage comparison of federal outlays for major programs in Fiscal Years 1974 and 1978 Direct benefit payments to individuals continued to be the dominant domi nant element of the federal budget The Fiscal Year 1978 budget message noted the significant shift in the distribution of federal resources spending on payments to individuals and grants to State and local governments rose on an average 95 percent per year and a total of more than percent even when adjusted adjusted adjusted ad ad- for inflation over the year 20 period ending in 1976 Before adjustment for inflation the increase was almost 14 percent per year or over 1000 percent The largest increases were for direct payments to ta individuals for programs such as social security and medicare During the same period spending pending for defense with a comparable adjustment for inflation declined a total of 11 perc percent nt although it increased percent before adjustment for inflation fi |