Joe Biden administration to propose $ 6 trillion budget plan for 2022

The United States is preparing to announce a $ 6 trillion budget plan for 2022 on Friday, as the country’s President Joe Biden seeks major changes in the U.S. economy and welfare system.According to two people who spoke with The Washington Post on condition of anonymity, as this is an issue that has not yet been made public.

The budget does not contain any major new White House policies and instead reflects plans that the Democratic administration has already unveiled, including a $ 2.3 billion infrastructure project, $ 1.8 billion education and families plan and $ 1.5 billion in proposed discretionary spending. In addition, it projects budget deficits of over $ 1 trillion for the rest of the decade, which would keep Washington’s spending imbalance at high levels. Even without new additional spending proposals, the annual federal budget is believed to include $ 5.8 billion in spending in the current fiscal year, which ends on September 30, 2021, according to information to which he has had access The Washington Post.

The budget proposal would be the last spending plan proposed to Congress in the first few months of Biden’s presidency. He has already adopted a $ 1.9 trillion stimulus package, and also offered the infrastructure, families and employment plan. However, what sets this budget apart is that focuses on general funding of government operations. Without a budget deal by October, there would be a partial government shutdown. As such, this package should begin negotiations with lawmakers on how to proceed, from military funding to school curricula.

White House budget projects US economy to grow by about 5% in 2021, an accelerated pace as the country recovers from the coronavirus pandemic. Then project that the economy will grow at a slightly slower pace in 2022, 4.3%, before stabilizing around 2% for the rest of the decade. The deficit will go from 17% of GDP in 2021 to 7.8% in 2022. The amount of federal debt outstanding will exceed that of the US economy as a whole for the remainder of the decade, reaching 116% of total GDP in 2027. It is estimated that taxes will increase by more than $ 3 trillion over the decade, in line with what Biden proposed as part of his economic programs.

Global expenditure and deficit figures were first released by The New York Times. The Washington Post indicated last week that the budget would reflect what has already been reported, abandon key health campaign promises, such as public choice and prescription drug reform. The budget will include a call to Congress to create a public option and give Americans over 60 the option to enroll in Medicare, according to a document obtained by The Washington Post.

“The president’s budget will focus on advancing the historic legislative program he has already laid out for this year.”, He said Rob friedlander, spokesperson for the White House budget office, in a statement last week. “The budget will not propose other new initiatives, but rather put together an overview of how these proposals would drive economic growth and shared prosperity, while putting our country on a sound fiscal track», He added, according to The Washington Post.

The White House offers a budget at the start of each year outlining its funding request for the fiscal year beginning in October. The government budget usually consists of several parts. There are parts of the budget, called discretionary spending, which must be renewed by Congress each year. Among them is the money for the military, the education ministry and a host of other programs.

There is also another section of the budget called “Mandatory expenditure” This includes money that is largely on autopilot and does not need new authorization from Congress. This includes significant public spending such as Social Security, Medicare, Medicaid and a number of safety net programs.

The proposal takes place when the White House maintains Controversial conversations with congressional Republicans over infrastructure proposal, and Senate Republicans will present their latest counter-offer to the Biden administration on Thursday. The budget underscores the scale of the government’s spending ambitions relative to Republicans in Congress.

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