US President Donald Trump has presented a 2020 fiscal year budget to the Congress that features increased military and domestic security spending and reduced spending on foreign aid. The budget would increase military spending by 4.7%, up to $750 billion, primarily set to be spent on the "strategic" rivalry with Russia and China. It also mentions countering North Korea and Iran.It also mentions countering North Korea and Iran.
The defence budget contains a request to obtain two experimental unmanned ships, several unmanned submarines, 12 warships, including a new-class of frigate, and 110 fighter jets, which includes F-35s and upgrades to the existing F-15 and F-16 fleets. It also contains funds for the development of a new generation of stealth bomber.
$9.6 billion of the Defence Department's budget will be spent on boosting the country's cybersecurity. Separately, $156 million will be spent on cybersecurity in the energy sphere.
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Trump's budget also allocates $8.6 billion for the construction of a border wall with Mexico under the national emergency state.
Foreign aid will be reduced by $13 billion, according to the proposed budget; but at the same time, it allows spending up to $500 million to boost security and reduce the "dependency" of countries in Europe, Eurasia and Central Asia on Russia, specifically in terms of arms. The State Department will receive $40 billion for efforts such as the denuclearisation of North Korea, competition with Russia and China, "aid" to the Venezuelan people, and the prevention of contagious disease epidemics at US borders.
The proposed budget also aims to cut spending on "Obamacare" and Medicaid. The latter will be limited to helping low-income citizens and the total amount of money spent on Medicaid will be strictly restricted. Obamacare will be replaced by grants subsidising health insurance that will be allocated among the states. Both programmes will be transferred to the states in 2021 and the increase in federal spending on them will be tied to the general level of inflation, the document says.
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The total proposed budget amounts to $4.7 trillion and relies heavily on the White House forecast of 3.1% economic growth, based on tax cuts for businesses introduced by Trump. The budget deficit is expected to climb to $1.1 trillion in 2020 if the economic projections turn out to be correct.
