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How will the economic effects of Hurricane Katrina be reflected in the government sector of the national income and product accounts (NIPAs)?
Although the impacts of the hurricane cannot always be separately identified in the source data used to estimate GDP components, we anticipate certain impacts to specific categories within the government receipts and expenditures account.
Many evacuees are eligible for Federal and state assistance or for extensions to benefits they were already receiving. These benefits include, but may not be limited to: Unemployment Insurance benefits, Food Stamps, Medicaid, Temporary Assistance to Needy Families (TANF), and Federal Emergency Management Agency (FEMA) disaster assistance payments. As a result, government social benefits are expected to increase based on our source data that will reflect the effects of Hurricane Katrina.
In response to Hurricane Katrina, the Federal Government will provide grants-in-aid to state and local governments in the following areas: Housing, civilian safety, education, transportation, and income support, social security and welfare as well as capital grants for infrastructure (roads, water treatment, etc.). Increases in grants will be imbedded in the source data normally used to produce these estimates.
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