The budget deficit in 2017-2018 year will increase by 248 billion because of tax cuts and an incorrect prediction costs for military health care. This was stated by the Director of the office of management and budget, Mick Mulvaney, may reviewing a draft budget to the administration of the tramp, as reported by Reuters.
According to Mulvaney, the projected deficit for the current year will increase by $ 99 billion (16.4%) to 702 billion, and in 2018, to 149 billion dollars (33%) to 589 billion.
The administration is faced with the doubts of analysts and economists about the fact that will reduce state deficit by increasing economic growth and changes in the Health Care Bill.
In the letter, Mulvaney says that the budget deficit in 2017-2018 will increase due to the tax cuts.
Taxes corporations and individuals this year will bring to the budget of 116 billion less than expected by the administration in may. 2018 140 billion dollars less than planned.
The costs in 2017 will be $ 17 billion lower than expected, and would have been even lower if not for the «incorrect calculations of expenditure» on health programs for the us military, as Mulvaney wrote in a letter to the speaker of the house of representatives Paul Ryan.
Program for the protection of health in 2017 will cost America 19 billion, and in 2018 — for $ 9 billion more expensive than expected. Total spending in 2018 will grow by $ 10 billion, said Mulvaney.
