Optimistic Predictions Resound for Government Budgets and the U.S. Economy

As 2005 marches in, many government officials are whistling an upbeat tune. A rebounding economy is jazzing up revenues for the public sector, enabling governments to scale budgetary high notes not reached in the past few years.

According to analysts at Global Insight, a leading provider of economic, financial, and industry data, all levels of government will continue to boost their purchases of goods and services in the years ahead. By 2009, the value of government purchases and capital investment should reach $2.68 trillion (see Government Purchases chart at the bottom of this page). Meanwhile, the Congressional Budget Office prediets that federal revenue will climb over the next 10 years (see Federal Revenue chart on page 12).