By Jasmine Tucker
President Obama recently released his fiscal year 2017 budget proposal. And one thing we know about budgets is that they are all about priorities: What should we spend money on? How are we going to raise money for the programs we want to fund?
These pictures tell the story of the priorities found in the president’s budget.
United States federal budget
U.S. Federal spending and revenue components for fiscal year 2016
The United States federal budget comprises the spending and revenues of the US federal government. The budget is the financial representation of the priorities of the government, reflecting historical debates and competing economic philosophies. The government primarily spends on healthcare, retirement, and defense programs. The non-partisan Congressional Budget Office provides extensive analysis of the budget and its economic effects. It has reported that the U.S. is facing a series of long-term financial challenges, as the country ages and healthcare costs continue growing faster than the economy.
CBO baseline for the Trump administration
In January 2017, the Congressional Budget Office reported its baseline budget projections for the 2017-2027 time periods, based on laws in place as of the end of the Obama administration. CBO forecasted that “debt held by the public” would increase from $14.2 trillion in 2016 to $24.9 trillion by 2027, an increase of $10.7 trillion. These increases are primarily driven by an aging population, which impacts the costs of Social Security and Medicare, along with interest on the debt. As President Trump introduces his budgetary policies, the impact can be measured against this baseline.
CBO also estimated that if policies in place as of the end of the Obama administration continued over the following decade, real GDP would grow at approximately 2% per year, the unemployment rate would remain around 5%, inflation would remain around 2%, and interest rates would rise moderately. President Trump’s economic policies can also be measured against this baseline.
National Priorities Project Statement On President Obama’s Last Budget Proposal
By Lindsay Koshgarian Feb. 9, 2016 | Budget Process, Education, Military & Security, Taxes & Revenue ……
CLICK ON TOPICS under this Project Statement section — RELATED ENTRIES — Webinar: 2017 Budget Proposals vs Americans’ Priorities
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