Statement on President Trump’s Budget Blueprint

NEW YORK — Michael A. Peterson, President and CEO of the Peter G. Peterson Foundation, commented today on the President’s budget blueprint outlining discretionary spending levels for fiscal year 2018:
“America faces significant fiscal challenges caused by a structural, long-term imbalance between revenues and spending. Economic growth requires a stable fiscal foundation, and the annual budget process is an important opportunity to put our nation on a more sustainable path.
“Today’s budget provides initial information, covering just one year and focusing on discretionary spending, which represents only approximately 30% of spending. While every part of the budget is important, discretionary spending is not a key driver of our growing debt — it is already projected to decline below historical levels.
“As lawmakers work through the budget process and pursue other major reforms, they have a responsibility to address our nation’s high and rising debt. On our current path, annual deficits will exceed $1 trillion in just 6 years, and the national debt will grow by $10 trillion over the next 10 years. We need to change course and chart a path for a sustainable fiscal future, in order to build a solid foundation for economic growth and prosperity.”
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Further Reading
What Are Refundable Tax Credits?
The cost of refundable tax credits has grown over the past several years, with the number and budgetary impact of the credits increasing.
Three Reasons Why Assuming Sustained 3% Growth is a Budget Gimmick
Lawmakers are reportedly counting on 3 percent economic growth for the next decade. Here are three key reasons why that is an irresponsible budget gimmick.
What Is the Primary Deficit?
The primary deficit is the difference between government revenues and spending, excluding interest payments. Learn more about the U.S. primary deficit.