Donald Trump Announces $4.6 Trillion U.S. Budget for 2020

On Monday, March 9, Donald Trump announced the federal government's proposed budget for 2020. This $4.7 trillion budget sets a new record and relies on an optimistic economic growth rate of 3.1 percent and a reduction in government spending, aiming to achieve budget balance over the next 15 years. It is estimated that the budget deficit for the fiscal year 2020 will reach $1.1 trillion, the highest figure in the last decade. The current U.S. government relies on high economic growth and the Republican Party's tax cut bill, which Trump intends to make permanent to reduce the government's deficit. However, some economic experts believe that the economic results of the tax cut for large corporations are declining, and the U.S. economic growth rate will also decline in the coming years. Currently, the U.S. government debt stands at $22 trillion. Even according to estimates, Trump's proposed budget will not achieve balance over the next 15 years and at best could fulfill the perennial promise of U.S. governments to reduce the deficit to 10 percent. Nevertheless, the U.S. President claimed that currently 'an economic miracle' is happening in America. In a letter accompanying the budget proposal sent to Congress, he stated: 'The next step for the country must be to strengthen future industries and stabilize a new standard of living for the 21st century.' The proposed budgets of U.S. presidents are generally considered broad outlines containing inspirational programs and rarely serve as the basis for the country's economic policies. In his proposed budget for the new fiscal year starting October 1, Trump will face opposition from Congress regarding budget priorities, including an $8.6 billion expenditure for building a wall on the border with Mexico. Russ Vought, the acting director of the U.S. Office of Management and Budget, stated that this budget, titled 'A Better Budget for a Better America,' prioritizes taxpayer interests and maintains the President's promise of 'establishing a responsible budget.' Despite the massive budget deficit the U.S. government faces, Vought said: 'The government has prioritized reducing unchecked federal spending, and this budget shows that we can return to financial health.' However, some financial and budget experts believe that the main points of Trump's budget and financial policies will lead to an increase in the deficit, with no specific actions or solutions to correct this situation. In Trump's proposed budget, the U.S. defense budget will increase to $750 billion in 2020. The budget for housing and urban development will decrease by 16 percent, and the education budget will also be reduced by 12 percent.