US: Budget proposal to almost double the deficit from projections – Danske Bank

In the US, the White House yesterday unveiled its federal budget proposal for the fiscal year 2019, including a proposal of USD1,500bn spending on infrastructure (USD200bn of which being Federal funds), notes Analyst, Aila Mihr at Danske Bank.

Key Quotes

“Democrats needed to enact any legislation have already dismissed the proposal due to lack of significant federal spending, while many Republican fiscal hawks are wary of any big spending bill. The proposal would see the deficit almost double from projections last year despite cuts to domestic programmes and foresees the budget in deficit until the fiscal year 2039. Overall, the proposal would only worsen the already unsustainable debt path and we remain sceptical that any such legislation will actually pass Congress.”