Trump to boost military spending and cut welfare

Donald Trump is proposing large cuts to welfare and a boost in military spending in a US$4.8 trillion ($7.5 trillion) Budget for 2021.

The US president’s election-year budget plan also promises the government’s deficit, which is estimated to be greater than US$1 trillion this year, will be eliminated within 15 years. It proposes a dramatic cut to funding for overseas military operations to save US$567 billion over 10 years, but promises a US$3 billion increase for Nasa as Trump seeks to fulfil his pledge to put US astronauts on the Moon and Mars.

The president’s US-Mexico border wall, a key 2016 campaign pledge, would receive US$2 billion in funding.

The plan also calls for military spending to be increased by 0.3 per cent to US$740.5 billion and nondefence spending to be lowered by 5 per cent to US$590 billion, below the level of a budget deal signed by Trump last year.

Democrats have reacted angrily to Trump’s proposal to cut US$465 billion from Medicare, the government funded insurance programme for Americans over the age of 65. Chuck Schumer, the top Democrat in the Senate, accused Trump of planning to “rip away healthcare from millions of Americans”.

The 2021 fiscal plan, which calls for cuts to spending on food stamps, farm subsidies and student loans, is likely to be rejected by the Democratcontrolled House of Representatives.

Nancy Pelosi, the house speaker, said: “The president is showing just how little he values the good health, financial security and well-being of hard-working American families.”

Nevertheless, the Budget offers an insight into policies Trump will push on the campaign trail as he fights for re-election in November.