The US Congress received White House’s $6 trillion budget proposal for approval
The news about a $6 trillion budget came after the White House announced that it was paring down the infrastructure bill. At that time, from the $2.25 trillion touted, the bill reached $1.7 trillion after cuts in broadband, roads, and bridges.
According to the White House, it makes good fiscal sense to invest now, as the cost of borrowing is cheap and reduce deficits later.
Biden’s plan for fiscal 2022 calls for $6.01 trillion in spending and $4.17 trillion in revenues. The program positively impacted Democrats, including House Speaker Nancy Pelosi, but drawn criticism from Republicans concerned about the high debt levels.
White House officials said that the plan addresses historic US inequality, climate change and provide four more years of free public education. The plan will be fully paid for in 15 years, with tax increases beginning to chip away at deficits after 2030.
US Treasury Secretary Janet Yellen stated that the budget would push the country’s debt above the size of the US economy but won’t raise inflationary pressures.
Read more here about the previous discussion regarding the infrastructure plan!
Sources: finance.yahoo.com, reuters.com