Today, President Trump released the summary of his third budget, which outlines the administration’s policy proposals, budget projections, and economic forecast for the next decade. Although the budget would achieve some deficit reduction on paper under the administration’s calculations, it fails to address the key drivers of our long-term debt and relies on overly-optimistic assumptions for economic growth.
Below are five key takeaways from the president’s budget:
The president’s budget underlines the need for further discussion about our fiscal policy. Despite optimistic economic assumptions and sharp spending cuts, debt as a percentage of GDP remains high and the structural causes of rising deficits are left unaddressed. The administration and Congress should commit themselves to effective budgeting to build a secure fiscal foundation for economic growth.
Want analysis to help you understand the latest fiscal news? Sign up for our bimonthly email newsletter.
Image credit: Mark Wilson / Getty Images