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2026-04-06 11:16:57
[Trump's Budget Reshapes Government Vision, But Fails to Reduce Huge Deficit] (1) Trump is reshaping the way the federal government's revenue and expenditure are managed, but overall, it has done almost nothing to curb the huge deficit. In his first year back in the White House, he did reduce the deficit by raising tariffs, cutting more than 200,000 federal employees, and reducing Medicaid and nutrition assistance. (2) However, the other end of the bill is also filled with huge expenditures: Republicans extended and superimposed tax cuts, allocated hundreds of billions of dollars to military and immigration enforcement, and needed to replenish weapons reserves for the war in Iran. The fiscal year 2027 budget outline increases defense spending by 42% and cuts non-defense spending by 10%, promoting the vision of "high tariffs, low taxes". (3) The overall fiscal path is worrying: the ratio of public debt to GDP is close to 100%, and annual interest payments have exceeded military spending. The Congressional Budget Office expects the deficit rate to be no less than 5.6% over the next decade. Trump has not addressed the biggest drivers of the deficit, such as Social Security and Medicare, and many spending cut proposals have been blocked in Congress, making it difficult to eliminate the deficit pressure.
