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Home >> US Budget >> Highlight on US Budget

Highlight on US Budget

President's Budget 2007
The President's 2007 Budget contains the important policies that have encouraged robust economic growth and job creations for the economy. The president's budget has proposed savings and reforms to mandatory spending programs. The budget tries to eliminate or reduce the expenditures on programs, which are not getting results or not fulfilling the essential priorities.

Highlights On US Budget

Focusing the Economic Expansion
From the present experience it is seen that the Nation has added more than 4.7 million new jobs, productivity has increased at a 3 percent annual rate, homeownership has reached all-time highs, and the American economy is growing faster than other major industrialized nations.

  • The taxpayers need more than temporary tax relief. The Budget proposes to make permanent the tax relief enacted in 2001 and 2003, preventing a tax increase on families and small businesses.
  • The strength of the US Economy has produced rapid increases in the level of Federal receipts, which are critical to reduce the deficit. From 2004 to 2005, receipts grew 14.5 percent ($274 billion), or more than twice as fast as the economy itself. The Budget forecasts receipts to grow another $132 billion from 2005 to 2006, an increase of 6.1 percent.



  • Restraining Spending and Cutting the Deficit

    The Budget aims at meeting the president's goal of cutting the deficit in half by 2009. The steps for this are as follows:
  • Growth of overall discretionary spending below inflation and to reduce non-security discretionary spending below the previous year's level.
  • Termination or reduction of 141 programs that are not getting results or not fulfilling essential priorities.
  • Projects the deficit will decline from its projected 2004 peak of 4.5 percent of GDP ($521 billion) down to 1.4 percent ($208 billion) in 2009, more than in half and well below the 40-year historical average deficit of 2.3 percent.

    Fiscal Dangers

    The greatest problems come from unsustainable growth in entitlement programs such as Social Security, Medicare, and Medicaid.
  • The Budget saves $65 billion over 5 years by slowing the future growth of entitlement spending.
  • It paves the way for further reforms that will be needed over the longer term to bring Medicare's finances in line with available resources.
  • The President will also continue to promote comprehensive reform of Social Security to place the program's finances on sustainable footing for future generations.

    National Priorities

    More emphasis is laid upon the national priorities like the War on Terrorism, health care, energy research and strengthening global competitiveness through improved math and science education and research.

  • Fighting the War on Terror
  • Defending the Homeland
  • Reducing Health Care Costs and Improving Access
  • Reducing our Addiction to Foreign Oil
  • Strengthening our Competitiveness
  • Promoting Compassion and Strengthening Families
  • Delivering Results and Controlling Spending
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