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CBO says Trump budget would reduce deficit but not balance budget

CBO says Trump budget would reduce deficit but not balance budget

A new analysis from the nonpartisan Congressional Budget Office didn't exactly come to that conclusion.

"CBO innaccurately (sic) estimated 25 million would be covered under Obamacare", reads another part.

Under Trump's budget, the cumulative federal deficit would be one-third smaller than CBO baseline projections that show deficits rising to 5 percent of the GDP by 2027, the CBO said.

But its estimates of the deficit are larger than the White House's estimates in every year over the next decade, primarily because the administration assumes the budget will generate much higher revenues, stemming from faster economic growth than the CBO assumes.

"Today's CBO report makes clear just how far the President's budget is from balance", said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, in a statement.

Trump's $4.1 trillion budget, sent to Congress in May, proposed to balance the budget by 2027.

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In fiscal 2016, the deficit was $585 billion, while the CBO expects it to grow to $693 billion for the 2017 fiscal year.

What's more, CBO and the Trump administration differ substantially in projecting economic growth, with Treasury Secretary Steven Mnuchin and others predicting three percent growth in GDP in the coming years compared to CBO's far less optimistic forecast of 1.9 percent growth. "The Congressional Budget Office's numbers don't add up", it claimed. The changes to Medicaid have been a point of political contention among Republican lawmakers.

The White House blueprint would cut $2 trillion in mandatory spending, including $1.9 trillion on health care.

"While it does very well at times predicting things on budget - whether it's revenue or spending, we don't always agree that it does a great job predicting (health care) coverage", White House deputy press secretary Sarah Huckabee Sanders told reporters last month.

"CBO agrees that this is the largest deficit reduction package in American history", said White House budget office spokeswoman Meghan Burris, promising that Trump's economic agenda "will jumpstart the economy".