US President Joe Biden will propose a $ 6 trillion budget plan in federal spending for fiscal 2022 this Friday, the New York Times reported on Thursday. The budget would raise the country to the highest levels of sustained federal spending since World War II.
According to documents obtained by the newspaper, this could generate a deficit of over 1.3 trillion dollars over the next decade. In 2022, the deficit would reach $ 1.8 trillion.
Investment would grow to $ 8.2 trillion in 2031.
The country’s total public debt, according to the NYT, could reach 117% of the American GDP in 2031. The forecast is that in 2024, the relationship between debt and GDP will reach the highest level in American history, surpassing the record of the period of Second war.
The increase is driven by Biden’s agenda for the country’s infrastructure and expansion of the social safety net, contained in the American Employment and American Families plans, in addition to other planned increases in discretionary spending.
The publication states that the Democratic president plans to finance the agenda by raising taxes on companies and high-income people, contained in the tax reform that the government is trying to pass. According to the documents, budget deficits would start to decrease in the 2030s
On Friday, Biden is expected to release his first full budget since taking office in January. The project predicts that the United States’ economy will grow at an annual rate of about 2% for much of the next decade.
Programs that the Democratic government plans to fund include roads, water and sewage systems, broadband Internet, electric vehicle charging stations and advanced manufacturing research, as well as affordable daycare funding, universal kindergarten, a national program paid leave, among other initiatives. Spending on national defense would also increase, although it decreased as a share of the economy, the publication points out.
The documents suggest that the American president should not propose additional important policies in the budget or that the budget will include plans that the government has not wanted to detail so far.