US Federal Budget, 2007 was announced by the President in the first week of February. The budget consisted of the estimated Government revenues, disbursements and the deficit in the economy of USA. It also had a record of the legislative activities during that period of time. The total revenue was recorded to be around $2.4trillion and the total expenditure amounted to $2.8trillion.
In the budget it was mentioned that the economy of US would grow at a rate of 11% because the US economy was in a good condition. US economy is predicted to be in a better position as the deficit has reduced to $296million from $423million in the year 2007. Inspite of the expenditures on emergency matters the government was still able to garner a good amount of revenue which resulted in the reduction of deficit enabling the country to move on the path of progress.
Introduction of President's Tax Relief
The Congress enacted the President's Tax Relief policy and the results of that policy were quite evident in the progress of the economy. USA experienced a sustained growth in their economy. The executive branch implemented those economic policies which helped in their growth. The President along with Congress' assistance took up several reform measures including the elimination of trade barriers thereby creating an international market for the goods of America. According to the budget the increase in the economy would continue till 2011.
Employment Rate
Employment rate is projected to increase during the fiscal year of 2007 reducing the rate of unemployment. In the past few years the American government was able to create more job opportunities for the residents of USA. As a consequence, the rate of unemployment was brought down to 4.6% in USA. The implication of this is that the scope of employment have increased in USA. The productivity of the work force has also increased in the past few years. All this increase in productivity translates into money which is accrued by the Government.
The rate of inflation has also been under control since the last year leaving out the price of energy resources that are unstable and are not taken into account while estimating the budgetary changes. Otherwise the inflation level has been quite low considering the fact that the economy of US has faced quite a few challenges.