• Publications
    • Essay
    • Case Study
    • Policy Study
    • Report
    • Testimony
    • Other
    • Newsletter
  • Blog
    • Daily Blog
    • Podcasts and Radio
    • Video
    • Infographics
    • Commentary / Op-Eds
    • Events
  • Events
  • Donate
  • About
    • Our Team
    • Show-Me Institute Board of Directors
    • Fellows and Scholars
    • Our Authors
    • Jobs
  • Contact
  • Explore Topics
    • Education
      • Accountability
      • Education Finance
      • Performance
      • School Choice
    • Health Care
      • Free-Market Reform
      • Medicaid
    • Corporate Welfare
      • Special Taxing Districts
      • Subsidies
      • Tax Credits
    • Labor
      • Government Unions
      • Public Pensions
    • State and Local Government
      • Budget and Spending
      • Courts
      • Criminal Justice
      • Municipal Policy
      • Property Rights
      • Transparency
      • Transportation
    • Economy
      • Business Climate
      • Energy
      • Minimum Wage
      • Privatization
      • Regulation
      • Taxes
      • Welfare
      • Workforce
Show Me InstituteShow Me Institute
Show Me InstituteShow Me Institute
Support the Show-Me Institute
  • Publications
    • Essay
    • Case Study
    • Policy Study
    • Report
    • Testimony
    • Other
    • Newsletter
  • Blog
    • Daily Blog
    • Podcasts and Radio
    • Video
    • Infographics
    • Commentary / Op-Eds
    • Events
  • Events
  • Donate
  • About
    • Our Team
    • Show-Me Institute Board of Directors
    • Fellows and Scholars
    • Our Authors
    • Jobs
  • Contact
  • Explore Topics
    • Education
      • Accountability
      • Education Finance
      • Performance
      • School Choice
    • Health Care
      • Free-Market Reform
      • Medicaid
    • Corporate Welfare
      • Special Taxing Districts
      • Subsidies
      • Tax Credits
    • Labor
      • Government Unions
      • Public Pensions
    • State and Local Government
      • Budget and Spending
      • Courts
      • Criminal Justice
      • Municipal Policy
      • Property Rights
      • Transparency
      • Transportation
    • Economy
      • Business Climate
      • Energy
      • Minimum Wage
      • Privatization
      • Regulation
      • Taxes
      • Welfare
      • Workforce
State and Local Government / Budget and Spending

Subsidies to Private Industries Equal 3 Percent of the Missouri State Budget

By Christine Harbin on Feb 16, 2011

Yesterday, I highlighted how the state government spends billions in subsidies to private industries in Missouri — $6.476 billion since 1997, to be precise. My colleague Audrey Spalding wonders:

$500 million may be only 0.27 percent of GSP, but how does it compare to Missouri’s budget? If this is all money the state spends, I would think a better comparison would be to the state budget. My guess is that’s a higher percentage…

Her suspicion is correct. During the period between 2002 and 2008, the amount of subsidies to private industries equals 3 percent of the state government’s total expenditures on governmental activities.

YearTotal SubsidiesTotal Expenses —
Governmental Activities
Percentage
2002$409,000,000$17,690,103,0002.31%
2003$610,000,000$17,436,504,0003.50%
2004$559,000,000$18,594,078,0003.01%
2005$755,000,000$19,626,984,0003.85%
2006$590,000,000$19,669,008,0003.00%
2007$534,000,000$19,711,347,0002.71%
2008$557,000,000$20,901,172,0002.66%
Sum$4,014,000,000 $133,629,196,000 3.00%

The subsidy data come from the Gross Domestic Product by State data from the Bureau of Economic Analysis (BEA). The total expenses for government activities data come from the Comprehensive Annual Financial Reports from the Missouri Office of Administration.

Another commenter requests a breakdown of this data to understand where these subsidies go. Here it is:

From 1997 to 2008
IndustryAmount
(In Millions)
Percentage
Agriculture, forestry, fishing, and hunting$3,437
Crop and animal production (Farms)$3,437100%
Forestry, fishing, and related activities$00%
Finance and insurance$7
Federal Reserve banks, credit intermediation and related services$7100%
Real estate and rental and leasing$2,602
Real estate$2,602100%
Rental and leasing services and lessors of intangible assets$00%
Transportation and warehousing, excluding Postal Service$429
Air transportation$22653%
Rail transportation$16538%
Water transportation$338%
Truck transportation$51%
Warehousing and storage$00%
Other transportation and support activities$00%
Pipeline transportation$00%
Transit and ground passenger transportation$00%
  • Share
  • Tweet
  • Share
  • Email
  • Print
About the author

Christine Harbin

More about this author >
    Footer Logo
    Support the Show-Me-Institute
    Showmeinstitute.org is brought to you by Show-Me Institute and Show-Me Opportunity.
    • Publications
    • Blog
    • Events
    • Donate
    • About
    • Contact

    Reprint permission for Show-Me Institute publications and commentaries is hereby granted, provided that proper credit is given to the author. We request, but do not require, that those who reprint our material notify us of publication for our records: [email protected]

    Mission Statement
    Advancing liberty with responsibility by promoting market solutions for Missouri public policy.

    © Copyright 2023 All Rights Reserved