The US President Donald trump will send to Congress a plan that involves balancing the Federal budget within 10 years, reported Bloomberg. Over the past 10 years, the budget deficit averaged $790 billion
The draft Federal budget of the United States on the 2017/18 financial year (starts 1 October), prepared by the administration of Donald trump, includes the intention to balance the budget within ten years, told Bloomberg, an unnamed us official. The budget plan will be submitted to Congress on Tuesday, may 23.
To eliminate the budget deficit offered through deep spending cuts to various social programs, such as ration cards for the poor (in 2016, they have enjoyed 44.2 million Americans), health care for people with limited incomes, Medicaid and benefits for Federal civil servants.
At the same time, trump decided not to touch the expensive programs of social security pensioners, the disabled and dependents Social Security and Medicare health insurance, according to Bloomberg.
For the last ten fiscal years Federal budget deficit amounted to an average of $790 billion In the current fiscal year deficit of $559 billion, predicts the congressional budget office.
The plan will also include details of tax reform, which were announced earlier by the American government, promising major tax cuts since the 1980-ies. Tax reform and the task is to balance the budget are combined only if the reduction of tax rates will be largely offset by eliminating numerous tax deductions and exemptions, says Bloomberg, citing experts.
The budget plan is based on the assumption that annual GDP growth will reach 3% by 2021, but this is very optimistic, given that the congressional budget office predicts by that time, only 1.9% growth.
According to the Associated Press, the draft budget will also contain unprecedented US rate on guaranteed paid maternity leave for parents of newborns. The Federal government plans to oblige States to guarantee paid leave to care for a newborn for six weeks. This initiative was included in the plan at the insistence of daughter trump Ivanka. The US law of 1993 provides the only opportunity to go unpaid maternity leave after the birth of a baby at 12 weeks — during this time employee is not entitled to dismiss. According to the International labour organization, the United States, along with Papua New Guinea, the only country in the world where there are guaranteed pay during leave to care for a newborn.