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NEW YORK (Reuters) – President Donald Trump's economic adviser said on Monday he expected budget deficits of about 4-5 percent of the country's economic output for the next two years, adding that there is likely to be a effort in 2019 to reduce spending on eligibility programs.
White House Economic Advisor Larry Kudlow speaks at a meeting of the Economic Club of New York in New York, United States, September 17, 2018. REUTERS / Brendan McDermid
"We need to be tougher on spending," White House economic adviser Larry Kudlow told the Economic Club of New York, adding that public spending was leading to larger budget deficits. .
Kudlow did not specify where future reductions would be made.
"We will record deficits of around 4-5% of GDP for next year or the next two years. I would prefer that they be lower, but it's not a disaster, "said Kudlow. "While going on the road, we would of course like to reduce it to the maximum and we will work on it."
He said the most important factor of revenue was the rate of economic growth. According to Kudlow, a faster pace of growth will generate more revenue and President Donald Trump's economic policy was aimed at boosting the US growth rate.
Kudlow also said he did not expect Congress to make the Trump administration's recent tax cuts permanent until the November 6 legislative elections.
"I do not think it will go through the whole Congress" before the elections, he said, but added that the permanent reduction of personal taxes was a "good message" and disagreed with the predictions of the government. increase in budget deficits.
Chris Prentice report in New York; additional story by David Lawder in Washington; written by Susan Heavey; edited by Tim Ahmann and G Crosse
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