Utah ranked 25th nationally and second to the last in the region in federal government per capita expenditures during fiscal 1988, the Census Bureau reports.

The federal government spent $5.7 billion in the state from Oct. 1, 1987, to September 1988, about $3,400 per capita. Nationally, the government spent $884 billion, about $3,545 per capita and a 3.3 percent increase over the previous year.Among seven states in the region, Utah was second to the lowest in per capita expenditures. New Mexico has the highest per capita expenditure of $5,752. New Mexico ranked second nationally. Colorado ranked 11th, Arizona 19th, Wyoming 22nd, Idaho 24th and Nevada 30th.

Nationally, Virginians fared best by receiving about $5,953 per capita, while Michigan had the lowest by receiving about $2,543 per capita.

In Utah, the government spent $725 million on grants to state and local governments, $1.2 billion on salaries and wages, $2 billion in direct payments to individuals including benefits such as Social Security, Medicare and food stamps. The government spent $1.5 billion in procurement of contracts for the Defense Department and other agencies and $149 million for research grants, agriculture subsidies and other purposes.

Nationally, the government spent $409 billion in payments to individuals, $189 billion in procurement contracts, $134 billion for salaries and wages, $115 billion in grants to state and local governments and $37 billion in other areas.

The report included virtually all federal expenditures within the United States, except interest on the federal debt.