The annual budget of US President Donald Trump is expected to be a tough one, wherein he will propose about five per cent reduction in domestic spending across the board, according to a top White House official on Sunday.
Trump will send his annual budget for the financial year 2019-20 to the Congress on Monday. Unlike India, wherein the annual budget is presented in Parliament by the Finance Minister, in the United States, the president sends his budgetary proposals in the form of a document to the Congress.
Appearing on the Fox news, on the eve of the budget, White House Chief Economic Advisor Larry Kudlow said that it (budget) is aimed at dealing with the budgetary deficit and at the same time ensuring rapid growth.
"If you want to deal with budget deficits, you have got rapid growth, which means keep the tax cuts in place. We believe the three per cent growth rate of 2018 will continue in 2019, and beyond 2020 and so forth," he said.
"I think the other element is always to limit spending and the president is proposing roughly a five per cent across-the-board reduction in domestic spending accounts. It will be a tough budget. We are doing our own caps this year and I think it's long overdue. Some of these recent budgets have not been favourable toward spending, Kudlow said.
He said that the Trump Administration is going to point a study guide path towards lower federal spending and federal borrowing as a share of the economy, as a share of GDP.
Responding to a question, he said, he does not see any increase in budgetary deficit.
"If the markets were overwhelmingly worried about our budgets and our spending and our deficits, you would see that interest rate rise and be a greater penalty. I don't see it right now," he said.