The US budget deficit is estimated to rise significantly this year. As is apparent from a new analysis of US Congress’s budgetary office, US debt is expected to be 804 billion in fiscal year 2018, which will run until 30 September. That’s 139 billion more than 2017. For 2019, Congressional advisors expect even a deficit of about one trillion dollars.
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The reason is in particular tax reform of US President Donald Trump and recently approved budget law. According to analysis, tax cuts by Trump government in next decade will increase US economy by an average of 0.7 percent a year. However, economic growth could only partially offset deficit. The US government had promised that tax cuts would be self-supporting.
By year 2028, total debt would increase from around 70 to 100 percent of annual economic output, if re were no legislative changes to fiscal policy, budget Bureau shared. A similarly high debt ratio, measured in terms of gross domestic product, had existed in US only shortly after Second World War.
