California Budget Economic Outlook Of California

California is one of the states in western United States, bordering the Pacific Ocean. The third largest state in the Union, California covers an area of great physical diversity in which uplands dominate the landscape. The California Budget is the annual summary of the itemized estimate of the income and expenditure of the State of California. It also includes several systematic proposals as to assess and determine how expenses will be met.

Manufacturing, agriculture, and related activities are the principal sources of income in the State of California. They are based in large part on the states wealth of natural resources, its productive farmlands, its large and highly skilled labor force, and its ability to market its output both at home and abroad. The California Budget is the annual plan for determining how to allocate resources like, time and money, in the coming financial year.

Californias size, complexity, and economic productivity make it preeminently a state of superlatives. As per the official California Budget over the last few years, its annual farm output is greater in value than that of any other American State, and it leads the rest of the nation in the production of many crops. It is the leading state in volume of annual construction and manufacturing. Vineyards are popular in California as both status symbols and sources of fine wine production industry.

California is the home of several significant economic regions, such as Hollywood for entertainment, the California Central Valley for the agriculture sector, the Silicon Valley and Tech Coast for the IT Sector, and wine producing regions, like the Napa Valley. The Silicon Valley is the center of the world's computer industry, just south of San Francisco. This is well articulated in the IT Sector budgeting section in several years edition of the official California Budget.

As per the California Budget of 2005, the gross state product (GSP) was about $1.62 trillion, the largest in the United States. California accounts for 13% of the United States gross domestic product (GDP). As of 2005, California's GDP was larger than all but seven countries in the world and all but eight countries in terms of Purchasing Power Parity. The predominant industry is agriculture followed by aerospace, entertainment, and oil drilling. The Budget of 2006 stated the Per capita personal income to be $38,956.

California levies a 9.3% maximum variable rate income tax, with 6 tax brackets, and collects about $40 billion per year in income taxes and about $28 billion in sales taxes per year. However, as per the Governors California Budget of 2007-08, the outlook for the California economy is one of slowing growth. Personal income is projected to grow 5.7 percent in 2007 and 5.4 percent in 2008, as compared to 6.6 percent in 2006. Non-farm payroll employment is forecast to increase 1.2 percent in 2007 and 1.6 percent in 2008, as compared to 1.8 percent in 2006. Eudget