U.S. budget projects $1-trillion deficit
President Donald Trump unveiled a $4.4-trillion budget for next year that heralds an era of $1-trillion-plus federal deficits and — unlike the plan he released last year — never comes close to promising a balanced ledger even after 10 years.
The budget submitted Monday shows the growing deficits despite major cuts for domestic programs, largely because of last year’s tax overhaul, which is projected to cause federal tax revenue to drop. This budget does not yet reflect last week’s two-year bipartisan $300-billion pact that wholly rejects Trump’s plans to slash domestic agencies.
The president’s budget proposes dramatic cuts to a wide range of domestic agencies from the Departments of Labor and Interior to the Environmental Protection Agency and the National Science Foundation. Unlike last year’s submission, the 2019 Trump plan would cut Medicare by $554 billion over the next 10 years, a 6 per cent reduction from projected spending, including cuts in Medicare payments going to hospitals and rehabilitation centres.
Presidential budgets are often declared dead-onarrival in Congress where lawmakers have their own ideas about spending priorities. But the documents do represent the most detailed elaboration of an administration’s priorities.