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Home / US / Trump's top economic adviser says the deficit is falling, but the government disagrees

Trump's top economic adviser says the deficit is falling, but the government disagrees



Larry Kudlow, the president's best economic adviser, told Fox on Fox's business network Friday that the budget deficit is "falling rapidly" due to President Trump's growth-enhancing policies. But the Ministry of Finance, the Congressional Budget Office, and external think tanks disagree.

"As the economy picks up, more people work, better jobs and careers, these revenue revenues come into play, and the deficit, which is one of the other reviews, sinks and it comes down fast," said Kudlow, said Maria Bartiromo of Fox Business, which did not seem to challenge him in this statement. "Growth solves many problems."

Kudlow did not say how he believes that the deficit ̵

1; essentially the amount the government spends, is more than what it takes as revenue – declines when the Treasury Department and Congressional Budget Office say otherwise. (The deficit is not to be confused with public debt, that is the accumulation of deficits year after year.)

According to the Ministry of Finance, the federal deficit in the 2017 financial year was $ 666 billion. According to the Congressional Budget Office (CBO) in April, it is estimated to reach $ 804 billion in 2018 and $ 981 billion in 2018 in 2018.

The CBO published a grim report on the country's fiscal future on Tuesday The introduction of the GOP tax code is expected to bring the deficit to $ 1.84 trillion over the next decade. Economists, as well as the CBO, blame a combination of increased spending and changes in tax law leading to lower revenues, in addition to the already rising spending on programs such as Social Security and Medicare.

The Ministry of Finance also disagrees with Kudlow's assessment that the deficit is going in the right direction.

In May, the Ministry of Finance recorded a budget deficit of $ 147 billion, up 66 percent from its May 2017 deficit.

The country's debt ratio is at its highest since World War II, and is expected to be nearly 100 percent by 2028, the CBO says.

This is despite Mr Trump's allegation to the Washington Post last spring that he will eliminate the public debt "over a period of eight years". The public debt which amounted to $ 19.9 trillion when Trump took office in March was over $ 21 trillion.

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