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2010 is the Stimulus Plan Spending Peak Year

Looking at the speed at which various projects are being implemented we can say that 2010 is the Stimulus Plan spending peak year. The stimulus plan was formulated with the intention of spending the amount over a time and the first 64% of the whole package was slated to be dispersed in the first 19 months. Considering the amount which was already spent in 2009, this year the spending will be much higher.

Many of the projects related with public works and infrastructure take time in planning. After that the actual contract has to be handed to the appropriate party for its implementation. Most of these projects have passed the planning stage and will need the funds in 2010. A total of $200 billion has been allocated to Education, Labor and Health and human services, out of which $91.3 billion is going to be spent by 2010. The majority of this amount is expected to be spent by end of September 2010. For renovating public schools more than half the amount would be used by September 2010.

Medical provisions see an outlay of $150 billion of which $89.7 will be spent in two years that is 2009 and 2010. Again if we see the Tax provisions given under the stimulus plans a sum of more than $80 billion will be the increase in the budgetary outlay, in keeping with the changes in the tax laws. Most of this amount will be dispersed in the first two years, which means that 2010 will have the most spending considering what was already spent in 2009.

Again if we take the money allotted for transportation and mainly the construction of highways, the amount spent in 2009 was not much and most of the projects will take effect in 2010, which sees an outlay of a total of $62.3 billion.

If we take into account the other allocations as well we find that all of them peak during 2010. State and Fiscal Stabilization Fund, which is meant to help the governments of state and local municipalities to fund the different education programs and other services related to education, will see a spending of $79 billion in 2010. One third of the amount which is allocated for urban development, housing and transportation will be spent in 2010 amounting to $62.3 billion. The spending in 2010 for energy and water will be $48.9 billion, for assistance to affected families and workers who are unemployed a total of $45.7 billion, health insurance for unemployed will be $40.8 billion, and rural development, agriculture and nutrition will get $26.9 billion.

The only spending which does not peak in 2010 is the amount for health information technology, which peaks in 2014. If we see all the allocations to the different sectors of the economy we find in the graph that all are peaking in 2010. Also considering the remaining amount which was forecasted to be used in 2009 and adding the outlay for 2010 we can safely say that 2010 is the Stimulus plan spending peak year.

Tags: government, Insurance, law, money, Stimulus, tax

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