According to the White House’s mid-year budget projections, the federal deficit is set to surpass $1 trillion in the year 2019.
The White House annual budget review reported that new legislation enacted since February, along with other factors related to Trump policy, would add an extra $101 billion to the 2019 deficit, pushing it past $1 trillion.
As The Hill points out, the $1 trillion figure amounts to 5.1 percent of U.S. GDP.
Previous estimates projected that the $1 trillion mark wouldn’t be surpassed until 2o2o. According to observers, a combination of bipartisan spending measures and the GOP’s tax cut which was passed in December are responsible for the expedited milestone.
“This is a striking acknowledgement following almost two years of claims that economic growth unleashed by these policies will wipe deficits away,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget, told The Hill.
From The Hill:
The budget outlook maintained the rosy economic projections the Trump White House has used in previous forecasts, but seemed to indicate a slight retreat from an earlier promise.
Trump officials have regularly argued that the administration’s policies would lead to sustained economic growth of 3 percent over 10 years, well above mainstream projections. In its updated budget outlook, OMB’s average growth rate dropped under 3 percent over the decade, dipping below the target as of 2025.
In February, FactCheck.org pointed out that President Trump budget’s claims of “deficit reduction” were eclipsed by the fact that his budget “actually calls for larger deficits for the next several years and would add $7 trillion to the national debt over 10 years.”
Featured image via Flickr