US Budget 2008 Sectoral Analysis
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The US Budget 2008 emphasizes on growth of different sectors of economy. Apart from ensuring a continual economic growth, this budget also proposes to restrain spending.
To meet its targets, the US federal government has chosen a prudent path in its long term fiscal policies. Coupled with grants and loans sanctioned by the US budget 2008, economy of the country is sure to witness a euphoric growth and prosperity in near future. Agriculture, industry and services are three major sectors of the US economy. According to the 2007 estimate, agriculture comprises of 0.9% of GDP composition while industry and service sector make up 20.5% and 78.5% respectively of the US GDP composition.
Primary agricultural products that are produced in the United States include wheat, grains, corn, vegetable, fruits, pork, beef, cotton, dairy products, forest products and fish. The 2008 budget ensures reduction of trade barriers in this sector. Government also ensures a continual growth of farm economy. Plans and programs for this sector in 2008 budget ascertain protection of imported as well as domestic agricultural products. Government also plans for development and sustenance of forests in the United States. For the ensuing financial year, government has set a sale target of 3.5 billion broad feet of timber. Government will also embark on projects that will reduce the threat of catastrophic wildfires. For this purpose, the US federal government has allotted $297 million for projects on reduction of hazardous fuels.
Agricultural sector in the United States has made immense progress in past few years. Government has provided the ranchers and farmers with adequate assistance that has resulted in conservation of in excess of 130 million acres of land in the last ten years.
According to the 2007 estimate, growth rate of industrial production in the US was 0.5%. Major industries in the country comprise of steel, telecommunications, electronics, petroleum, motor vehicles, food processing, aerospace, chemicals, lumber, consumer goods and mining. The federal government plans to initiate new markets for industrial products produced in the country. To optimize gains from trade, government plans to enforce unfair trade laws, improve and generate competitiveness of firms and eliminate barriers to sales of the products produced in the US.
The 2008 budget has been drafted to respond to substantial challenges faced by the economy. Although government recognizes the risks in short-term period, the budget is prepared to bolster economic growth in long term. In past six years, the US has witnessed an economic growth averaging 2.8% which is expected to be slower in the following financial year. The economy projects a dichotomized growth in which although core inflation remains low, prices of food and energy are constantly rising. Consumer spending is indicated to be strong although the values of real estate and houses are declining. Domestic manufacturing industry progresses at a slow pace in the US although demand for exports is constantly rising. The 2008 US budget is designed to counter such challenges and ensure a planned growth with immediate and permanent effect on the economy.