White House proposed a $4.4 trillion federal budget for fiscal 2019, which starts in October 2018. The budget shows the 2019 deficit will increase to $984 billion, or 4.7% of GDP.
The budget would add $984 billion, or 4.7% of GDP, to the federal deficit next year. The budget proposal was sent to Congress.
Cuts in the fiscal year 2019 budget will be made due to reforms in the social security system, reduced funding of other states and the government reorganization initiative.
First, the deficit will increase due to the growth of investments in infrastructure and defense.
After 2020, the deficit is expected to start declining: to $916 billion (3.9% of GDP) by 2021 and to $852 billion (3.5% of GDP) by 2022.
In addition, the budget deficit will be reduced after 2020 by abolishing a number of Obamacare’s provisions, reorganizing the government, further cutting aid to foreign countries and redistributing discretionary spending.
