A gradually strengthening economy in 2011 signals improved government budgets.
A lot of signs point to a stronger economy, including growing consumer confidence, higher sales at domestic car and truck makers, record-breaking corporate profits and higher tax revenues.
In 2011, government purchases of goods and services will reach $3.03 trillion, up from $2.99 trillion in 2010, according to Waltham, Mass.-based economic forecaster IHS Global Insight. State and local government purchases of goods and services will total $1.82 trillion in 2011.
Federal purchases of goods and services will rise to $1.21 trillion in 2011, up slightly from $1.20 trillion in 2010, according to IHS Global Insight. Federal revenues, says the Congressional Budget Office (CBO), will rise to $2.6 trillion in 2011, up from $2.1 trillion in 2010. Download the projections of the CBO’s recent “The Budget and Economic Outlook: An Update,” from the CBO’s web site.