In this paper we will discuss about the US Federal Budget for 2007 financial year. We will also highlight on the military budget for that year. The budget was announced in February 2006. The government relieved the income tax to some extent for the senior citizens who were still in the service.
The 2007 US Federal Budget was formed through a process that involves the executive and as well as the legislative branches of the US federal government. The fiscal year in America starts from the 1st October.
The President announced the 2007 US budget in February of the previous year. The budget comprises all the spending information and revenue proposals. The budget features are listed below:
In 2007, the total amount of receipts was 2,407 billion dollars, where on budget and off budget receipts were 1798 billion and 608 billion dollars respectively. Receipt from individual income tax was 1,163 billion dollars.
The total spending by the government was estimated at 2.8 trillion dollars. The government planned to spend almost 395 billion dollars for Medicare.
The 2007 US federal budget allocated a huge amount of money to finance the Iraq and Afghan war. Almost 115 billion was estimated for that warfare.
The US military budget for the financial year 2007 estimated the US Department of Defense’s expenditure at 411 billion dollars.
The government planned to spend 500 million dollars for public transit and 250 million to develop automotive research so that more fuel efficient cars could be produced.
The budget allocated 400 million dollars for the recruitment of 2,500 new police officers. Tax reliefs for less income working citizens, especially for the senior citizens, were increased from 500 dollars to 3,500 dollars.
The budget highlighted that inflation would fall to 1.8% during the financial year of 2007 and it did not give any hint of a recession.