In this paper we will discuss briefly about the fiscal outlook of US under the light of 2009 budget. The US government has introduced several proposals to achieve financial stability. The budget proposes to address the fiscal challenges by adopting fiscal reform. Another aim of the government is to reduce the deficits and as well as government spendings.
The President’s 2009 budget has given lots of proposals to reform America’s fiscal outlook. They are as discussed below:
The new budget introduces some methods for restraining the spendings to reduce the previous year’s budget deficit. In the 2007 financial year, the budget deficit was 162 billion dollars.
The 2009 Budget proposes a package of economic growth which will provide a temporary tax relief to increase consumer spendings. This package will also help to increase business investments.
The government’s main aim is to ensure a fully balanced budget within the next five year. The budget suggests to address the on going fiscal problems through fiscal reform.
The budget deficit for the 2008 financial year has been predicted to be 410 billion dollars which is 2.9% of the gross development product. The deficit increases due to the government’s plan of high spending for the defense sector.
President’s 2009 budget proposes to go on with the tax policies for a longer period to promote employment, entrepreneurship and economic growth.
Another budget proposal is the tax modifications. The government will modify the existing taxes to reduce the loopholes and make the process of taxation simple. Through tax modifications the government will be able to increase investment in small business and to advance the retirement savings.