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Summary
- President Joe Biden to push for a US$6 trillion Federal Budget for FY2022.
- Spending on social security, healthcare, and infrastructure to get priority.
- Higher taxes for wealthy Americans and corporate giants on the cards.
President Joe Biden is expected to unveil his first federal budget amounting to US$6 trillion for the fiscal year 2022 later Friday.
It is the largest fiscal spending budget since World War II. Spending on social security, healthcare, and infrastructure projects to get high priority.
President Biden to push for an overall US$8.2 trillion by 2031 to undertake the projects, which might raise the US fiscal deficit to as high as US$1.3 trillion through the next decade.
The budget would also focus on climate mitigation efforts like introducing green technologies, eco-friendly buildings, transport systems, and roads and bridges, etc.
The primary focus will also be on his flagship American Jobs Plan and American Families Plan that vows to expand the social safety net through new job creation and welfare programs. These proposals are estimated to cost around US$4 trillion over the next few years.
The Biden administration plans to create more jobs to help bring more Americans into the middle-class category, which has been left devasted by the scourge of the coronavirus pandemic. It will also push for enhancing the industrial capacity weakened by the crisis.
He has also pledged to reduce carbon emissions and mitigate climate change, which is expected to reflect in the budget.
Source: Pixabay.
Also Read: US Economy Adds Record 1.8 Mn New Jobs in March As Hiring Slows
How will Biden fund the initiatives?
To fund these initiatives, the administration plans to increase the income tax for large corporate houses and wealthy Americans. It is expected to help reduce the budget deficit by 2030. President Biden has promised to leave out those who earn less than US$400,000 a year from the rate hike.
However, questions remained whether these tax initiatives can fully cover the deficit. The economic rebound is expected to give impetus to tax collections. Still, it is likely that the national debt may also go up by 117% with all the economic activities combined by 2031.
What are the developments projects?
The administration plans to fund infrastructure projects for building charging stations for electric vehicles, roads and bridges, water pipes, and a 5G network, among others, nationwide. It also plans to step up on social programmes like the national paid leave program, childcare and free kindergarten, education, and scientific research. Spending on defence is also likely to grow, but its percentage in the budget may reduce.
Also Read: US Home Prices Surge To 15-Year High Amid Scarce Supply
Addressing a gathering in Cleveland on Thursday, President Biden called on the lawmakers to support his plan for rebuilding the American economy. He stressed that his proposals needed urgent action to lift the economy from the current decline.
Officials had earlier hinted that there might be additional measures, besides the budgeted proposals to strengthen the US economy, which included redesigning the unemployment insurance scheme.
