WASHINGTON — President Donald Trump’s budget plan would produce significantly larger budget deficits than promised when it was released in March, mostly because its estimates of economic growth are too rosy, according to a new nonpartisan analysis Thursday.
The Congressional Budget Office estimate said Trump’s budget, if enacted in its entirety, would produce deficits that would be $2.7 trillion greater over the coming decade than promised by the White House budget office.
CBO predicted deficits under Trump’s plan, which was criticized by both Democrats and Republicans, would total almost $10 trillion over 2020 through 2029. The administration promised deficits totalling $7.3 trillion.
The difference comes because Trump’s budget predicts economic growth averaging 2.9% over the coming decade while CBO estimates growth averaging 1.8% over that timeframe. As a result, revenues would fall $3.8 trillion short of White House estimates, CBO said. But spending would be $1.1 trillion less as well, which would ameliorate the deficit impact somewhat.
Trump’s budget, which promised sharp cuts to domestic appropriations but left Medicare and Social Security benefits relatively untouched, was declared dead on arrival as soon as it was released. Trump promised it would curb the deficit by $4.1 trillion over a decade but in CBO’s view it would curb deficits by just $1.5 trillion.
Andrew Taylor, The Associated Press