The Budget and Economic Outlook

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27 February 2009

THE BUDGET AND ECONOMIC OUTLOOK

Revenue and Expenditure

Expenditures or outlays are payments by the government in fulfillment of an obligation . The two major categories under government expenditures are : Mandatory spending and Discretionary spending . It is estimated by the Congressional Budget Office (CBO ) that by 80 billion , or 3 .0 percent , this year , reaching over 2 .7 trillion Outlays are expected to reach 19 .9 percent of GDP in 2007 - down from 20 .3 percent last year

Outlays

for mandatory programs are projected to reach almost 1 .6 trillion in 2008 , with nearly 80 percent alocated for Medicare Medicaid , and Social Security . Based on CBO 's latest baseline projections , rate of 2 .5 percent annually , from over 1 .1 trillion next year to almost 1 .4 trillion in 2017

Government or federal revenues are collections that are accrued from the Government 's exercise of its sovereign power to tax or otherwise compel payment and from gifts of money to the Government . The two major categories under government revenues are : Individual Income Tax and Corporate Income Tax

It is projected that individual income tax receipts as a share of GDP will increase from 8 .5 percent this year to 10 .7 percent in 2017 . With reference to the size of the economy , they are expected to rise in 2008 stabilize through 2010 , and increase every year thereafter...