Trump's first budget: a historic cost cut

Фото: Depositphotos

The White House on Tuesday will send legislators the first full-fledged budget prepared by the administration of President Donald Trump, which provides for the reduction of medical care programs and food aid to the poor while reducing the deficit.

According to Voice of America, the plan calls for reducing government spending by $ 3,6 trillion over 10 years, which will balance the budget by the end of this period.

The project involves reducing the program of care for the poor. Medicaid $ 800 billion and food ration cards $ 192 billion.

Presidential budget projects are often ignored by Congress, which controls the expenses of the federal government. It is expected that lawmakers will try to avoid at least some of the most sensitive cuts proposed by Trump.

The budget for the next fiscal year, which begins in October, was developed as part of the White House’s efforts to implement its economic agenda aimed at supporting business.

The greatest savings are expected from program cuts. Medicaid. The food rationing program is proposed to be modified by expanding employment requirements for childless recipients and shifting part of the cost to state governments.

The plan also provides for the sale of half of the oil reserves created for emergencies, which will provide an additional $ 16,5 billion. Lifting the ban on drilling oil wells in the national reserve in Alaska can bring $ 1,8 billion.

But there are new expenses

The budget prepared by the White House suggests an increase in defense spending in the 2018 year by $ 603 billion, which is about 3% higher than the budget project for the 2018 year proposed by President Barack Obama.

The sum of $ 603 billion includes funding for programs of the Ministry of Energy related to nuclear weapons, other national defense programs, as well as the Ministry of Defense itself.

In accordance with the proposal of President Donald Trump, the United States must cut spending on the State Department and “other international programs” by $ 11,5 billion (29,1%) in the 2018 year compared to the 2017 year.

The draft budget envisages the transformation of some US foreign military grants into loans, which is part of a larger effort to reduce the cost of diplomatic work, assistance programs and other programs abroad, the White House said.

Newspaper Wall Street Journalwhich is the first reported on the parameters of the budget proposal, notes that the replacement of foreign military grants for loans may affect Pakistan, Tunisia, Lebanon, Ukraine, Colombia, the Philippines and Vietnam.

According to the Congressional Research Service, the volume of military aid programs for partners and US allies reached $ 13,5 billion in 2015, which is 28% of all foreign aid spending that year.

Todd Harrison, an expert on military spending from the Center for Strategic and Budgetary Evaluations, believes that the transition from grants to military aid loans may lead to the recipient countries not being able to afford to purchase American military equipment, which will force them to turn to other suppliers.

“They will be able to buy from China or Russia. Will be able to go to other places. These grants are one of the capacity building opportunities for our partners, ”he said.

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