Trump Administration Releases 2020 ‘Budget for a Better America’
- Author: Joey Payne Mar 12, 2019,
Mar 12, 2019, 0:40
The budget calls the approach "MAGAnomics", after the president's "Make America Great Again" campaign slogan.
President Donald Trump delivered a 2020 budget to Democrats on Monday that cuts spending across the board yet still isn't projected to balance for 15 years, even with ambitious economic growth forecasts.
"I think it's a good prescription", he said on "Fox News Sunday".
The fiscal 2020 proposal sees the deficit expanding to $1.1 trillion for 2019 and 2020, when Trump will run for re-election. The new budget frames the issue of wall construction as a project to be finished by a president who is getting the job done.
The deficit increased 77 percent in the first four months of fiscal 2019 compared to the same period previous year, reaching $310 billion for just that four-month period, according to the Congressional Budget Office. And that was when the GOP controlled both houses of Congress.
Kudlow said daily negotiations between USA and Chinese officials have been progressing following face-to-face talks in Washington roughly two weeks ago, after which Trump extended a March 1 deadline for increasing US tariffs on $200 billion in Chinese goods.
"I suspect that's what's going to happen this time", said Howard Gleckman, a budget expert at the Tax Policy Center, a nonpartisan think-tank. "I think it's essential".
Trump is banking on robust economic growth, but some economists say the boost from the Republican tax cuts are waning.
The President's $USD4.7 trillion ($AUD6.7 trillion) blueprint for the fiscal year starting on October 1 also revisits the political fight over border wall funding that triggered this past winter's partial government shutdown.
In a budget that will likely face much opposition from House Democrats, Trump apparently plans to use infrastructure spending as negotiating leverage.
A senior administration official told reporters the budget would cut foreign aid by $13 billion.
He will request another $3.6 billion for the Defence Department's military construction budget to erect more sections of a wall. He's going to stay with his wall and he's going to stay with the border security theme. "The same thing will repeat itself if he tries this again", the statement continued.
The proposal also cuts down on 29 programs that are either ineffective, not addressing national needs or could be better supported at the state or local levels, according to the Education Department.
Kudlow predicted that USA economic growth can continue at 3 percent in 2019 and beyond, even as many private economists look for a slowdown this year as the impact of the 2017 Republican tax cuts wears off.
The White House budget calls for a number of new programs to reduce Medicare spending, including by increasing audits of payments through Medicare Advantage, instituting new changes to reduce other forms of "fraud and abuse", and changing hospital reimbursement rates.
The budget arrived as the Senate readies to vote this week to terminate Trump's national emergency declaration.
House Democrats have already called the plan dead on arrival, arguing that the proposal would leave the country less safe and secure with "no chance" of passing in the chamber that they control.
The request is in addition to the funds that Trump is hoping to allocate through executive action after declaring a national emergency in February over the situation on the border, a move likely to tee up a new battle with Congress.
Even with the proposed cuts, the White House proposal would not eliminate the budget deficit until the mid-2030s.