investorschatroom.com

Sci-tech

Trump Budget Would Cut Deficit But Wouldn't Balance, CBO Says

Share
Trump's Budget Doesn't Balance Federal Ledger CBO

A new analysis from the nonpartisan Congressional Budget Office didn't exactly come to that conclusion.

The CBO estimated that Trump's budget would cause the federal budget deficit to shrink relative to the size of the economy over the next 10 years, ranging between 2.6 percent to 3.3 percent of gross domestic product during that period.

Trump's $4.1 trillion budget, sent to Congress in May, proposed to balance the budget by 2027. But in other cases when proposals lacked specificity, including a plan to save $139 billion by reducing improper government payments and $35 billion by easing financial regulations, the CBO and JCT didn't count the potential savings in their estimates.

"Nearly all of that (deficit) difference arises because the administration projects higher revenue projections - stemming mainly from a projection of faster economic growth", CBO said.

The annual budget deficit in 2027 would be about $720 billion under Trump's proposal, the CBO said in a report, not eliminated as promised by the White House, which has projected a $16 billion surplus.


Trump Talks Up Macron During Joint Presser

The CBO said did not take into account all of Trump's proposals that may affect the economy because "the details on numerous proposed policies are not available at this time".

"The reduction in deficits and debt under the president's budget would be achieved by decreasing both mandatory and discretionary spending significantly compared with projections under current law", the CBO said. Its projections included a $2 trillion math error, claiming the amount would be spent twice on balancing the budget and tax cuts.

The video echoes a talking point White House officials have used for months.

Republican Senator Susan Collins said: "I'm very concerned about the cost of insurance for older people with serious chronic illnesses and the impact of the Medicaid cuts on our state governments; the most vulnerable people in our society".

The Trump White House on Wednesday put out a video that attacked the Congressional Budget Office's accuracy in forecasting economic statistics - but the video itself misspelled the word "inaccurately".

5-year martial law 'too long — AFP spox
Even if the administration is keen on extending military rule, the decision would still rely on recommendation from the military and police.

Blow to Froome as Thomas crashes out of Tour
Slovakian Juraj Sagan, Italian Matteo Trentin and Australian Mark Renshaw also finished outside the time limit. Bardet is up to third overall, 51 seconds down, four seconds ahead of former Team-Sky man Uran.

Nitish Kumar denies rumours of tension in the Mahagathbandhan
The Congress should start work on an agenda only after the approval from other opposition parties, he said. Kumar was emphatic that his party had been following the coalition dharma and would always follow it.

Share