•   
  •   
  •   

Politics US on track for first $1 trillion budget deficit since 2012

22:35  12 february  2020
22:35  12 february  2020 Source:   msn.com

Trump budget plan would fail to eliminate deficit over 10 years, briefing document shows

  Trump budget plan would fail to eliminate deficit over 10 years, briefing document shows An overview of the White House's budget, obtained by The Washington Post, calls for eliminating the deficit in 15 years.Instead, White House officials plan to say that their budget proposal would close the deficit by 2035. During Trump’s first year in office, his advisers said their budget plan would eliminate the deficit by around 2028. This new budget will mark the third consecutive time that they abandon that 10-year goal and instead suggest a 15-year target. This new trend shows how little progress the White House is making in dealing with ballooning government debt, something party leaders had made a top goal during the Obama administration.

WASHINGTON (AP) — The U.S. budget deficit through the first four months of this budget year is up 19% from the same period a year ago, putting the country on track to record its first $1 trillion deficit since 2012.

FILE - In this Jan. 29, 2020, file photo the Capitol is seen amid reflections of the Russell Senate Office Building in Washington. On Wednesday, Feb. 12, the Treasury Department releases federal budget data for January. (AP Photo/J. Scott Applewhite, File)© Provided by Associated Press FILE - In this Jan. 29, 2020, file photo the Capitol is seen amid reflections of the Russell Senate Office Building in Washington. On Wednesday, Feb. 12, the Treasury Department releases federal budget data for January. (AP Photo/J. Scott Applewhite, File)

The Treasury Department said Wednesday in its monthly budget report that the deficit from October through January was $389.2 billion, up $78.9 billion from the same period last year.

Trump to Propose $4.8 Trillion Budget With Big Safety-Net Cuts

  Trump to Propose $4.8 Trillion Budget With Big Safety-Net Cuts President Trump is expected to release a $4.8 trillion budget Monday that charts a path for the start of a potential second term, proposing steep cuts to social-safety-net programs and foreign aid and higher outlays for defense and veterans. The plan would increase military spending 0.3%, to $740.5 billion for fiscal year 2021, which begins Oct. 1, according to a senior administration official. The proposal would cut nondefense spending by 5%, to $590 billion, below the level Congress and the president agreed to in a two-year budget deal last summer.

The deficit reflected government spending that has grown 10.3% this budget year while revenues were up only 6.1%. For January, the deficit totaled $32.6 billion, compared to a surplus a year ago of $8.68 billion.

President Donald Trump sent Congress a new budget blueprint on Monday that projects the deficit will top $1 trillion this year but then will decline over the next decade.

The Congressional Budget Office, however, is projecting that the deficit will top $1 trillion this year and remain above $1 trillion over the next decade.

The actual deficit for the 2019 budget year, which ended Sept. 30, was $984.4 billion, up 26% from the 2018 imbalance. The rising deficits reflect the impact of the $1.5 trillion tax cut Trump pushed through Congress in 2017 and increased spending for military and domestic programs that the president has accepted as part of a budget deal with Democrats.

Pete Buttigieg calls for deficit reduction, swiping Bernie Sanders

  Pete Buttigieg calls for deficit reduction, swiping Bernie Sanders Democratic presidential candidate Pete Buttigieg vowed to focus on the debt even though he says it's "not fashionable in progressive circles."Asked at a town hall here how important the deficit is to him, Buttigieg said it's "important" and vowed to focus on limiting the debt even though it's "not fashionable in progressive circles.

In his new budget plan for the 2021 fiscal year that starts on Oct. 1, Trump is proposing spending $4.8 trillion but would seek to hold down deficits by making cuts to domestic programs like food stamps and Medicaid.

Trump’s plan projects that if Congress goes along with his spending cuts, which is highly unlikely, the budget would return to balance in 15 years.

Through the first four months of this budget year, government spending has totaled a record $1.57 trillion, up 10.3% from the same period last year. Revenues also set a record for the first four months of a budget year, increasing by 6.1% to $1.18 trillion.

The government first ran $1 trillion deficits from 2009 through 2012 as revenues fell during the worst recession since the 1930s. Spending increased for safety-net programs such as unemployment benefits and to rescue banks and auto companies following the 2008 financial crisis.

Doyle McManus: Trump once vowed to wipe out the federal deficit. Now he's just pretending .
WASHINGTON - "Promises made, promises kept" has been one of President Trump's frequent boasts in his campaign for a second term. So it was a little awkward this week when his own proposed budget acknowledged, in the fine print, that several of his key promises haven't been kept at all. When Trump ran in 2016, he promised that if Congress enacted big tax cuts for corporations, economic growth would soar to 4% or more. “I actually think we can go higher,” he said.He promised to balance the federal budget in eight years, a longstanding Republican aim that those economic growth rates could make possible.Neither goal is being met — not even close.

—   Share news in the SOC. Networks

Topical videos:

usr: 1
This is interesting!