As the second annual report (1971) on the availability of government and government assisted services to rural areas, this report presents narrative and tabular data emphasizing: (1) income and population trends in relation to objectives for balanced growth; (2) relationship of geographical distribution of Federal outlays to the patterns of population and income change; (3) an evaluation of the allocation of Federal outlays between rural and urban areas with particular reference to education, manpower, health, and welfare services; (4) recent changes in the allocation of Federal outlays between rural and urban areas. Significant highlights include the following: personal income is more concentrated geographically than population, but rural counties have experienced a faster growth of per capita income from 1959 to 1967; rural areas receive a share of Federal outlays approximately in proportion to the rural-urban population ratio, shifting slightly in favor of rural areas in 1971; except for Appalachia and rural New England, the housing and community development programs are not geographically disadvantageous to rural people; smaller urban centers appear to be the major beneficiaries of manpower programs; health and education outlays are more urban than rural in orientation; states with lower welfare payments have a higher proportion of rural people. (JC)