STATE GOVERNMENT FINANCES: 1998


                                                    Amount          Percent            Per
Massachusetts                               (in thousands)     Distribution         capita

Population (thousands)                               6,147                                
Total Revenue                                   28,234,686           100.00       4,593.15
  General revenue                               25,801,142            91.38       4,197.27
    Intergovernmental revenue                    6,458,265            22.87       1,050.61
    Taxes                                       14,488,496            51.31       2,356.95
      General sales                              2,962,535            10.49         481.94
      Selective sales                            1,408,131             4.99         229.07
      License taxes                                450,609             1.60          73.30
      Individual income tax                      8,031,943            28.45       1,306.62
      Corporate income tax                       1,354,899             4.80         220.41
      Other taxes                                  280,379             0.99          45.61
    Current charges                              1,698,344             6.02         276.28
    Miscellaneous general revenue                3,156,037            11.18         513.42
  Utility revenue                                   76,278             0.27          12.41
  Liquor stores revenue                                  0             0.00           0.00
  Insurance trust revenue                        2,357,266             8.35         383.47
                                                                                          
Total expenditure                               27,194,316           100.00       4,423.90
  Intergovernmental expenditure                  6,215,380            22.86       1,011.10
  Direct expenditure                            20,978,936            77.14       3,412.80
    Current operation                           13,642,119            50.17       2,219.27
    Capital outlay                               2,915,829            10.72         474.34
    Insurance benefits and repayments            1,931,114             7.10         314.15
    Assistance and subsidies                       690,824             2.54         112.38
    Interest on debt                             1,799,050             6.62         292.66
Exhibit: Salaries and wages                      3,508,022            12.90         570.68
                                                                                          
Total expenditure                               27,194,316           100.00       4,423.90
  General expenditure                           25,152,926            92.49       4,091.81
    Intergovernmental expenditure                6,215,380            22.86       1,011.10
    Direct expenditure                          18,937,546            69.64       3,080.71
  General expenditure, by function:                                                       
    Education                                    5,477,503            20.14         891.07
    Public welfare                               6,181,247            22.73       1,005.55
    Hospitals                                      524,659             1.93          85.35
    Health                                       1,396,566             5.14         227.19
    Highways                                     2,386,682             8.78         388.26
    Police protection                              306,873             1.13          49.92
    Correction                                     861,816             3.17         140.20
    Natural resources                              251,467             0.92          40.91
    Parks and recreation                           141,430             0.52          23.01
    Governmental administration                  1,068,414             3.93         173.81
    Interest on general debt                     1,775,250             6.53         288.79
    Other and unallocable                        4,781,019            17.58         777.76
  Utility expenditure                              110,276             0.41          17.94
  Liquor stores expenditure                              0             0.00           0.00
  Insurance trust expenditure                    1,931,114             7.10         314.15
                                                                                          
  Debt at end of fiscal year                    32,833,163           100.00       5,341.22
                                                                                          
  Cash and security holdings                    46,252,146           100.00       7,524.18