U.S. President Joe Biden will propose a $6 trillion budget total of Federal Spending over the next ten years as part of his budget for the fiscal year of 2022. The enormous spending would fund Biden’s domestic agenda, expand the safety net to more working families, and update infrastructure.
$3.6 trillion would be gathered from additional Federal government revenues, while $1.4 trillion would be on the deficit. This budget also expects inflation to go no more than 2.3% annually over the next ten years.
$300 billion will also be requested, bringing the total to near $6 trillion. Medicare, Medicaid and social security will take up the big proportions of the additionally budget expenditure. Over the next ten years, the budget will also address Biden’s two big plans, such as the American Jobs Plan and the American Families Plan.
The American Families Plan will add funding to additional free years of pre-K and two free years of community college. Childcare costs for the middle-class will be subsided with expanded child tax credits, and Federal paid family leave.
The American Job plan will focus on delivering infrastructure, green technology, broadband, electricity grids and make the American infrastructure more competitive.
Most of the funding will come from increased taxes on the wealthiest Americans—both high earners and corporations.
The budget is proposed for the fiscal year 2022, which will commence on October 1st.
If Biden’s budget passes, it will result in universal preschool, paid family leave, green infrastructure, military spending, and debt as a percentage of GDP rises above the current rate of 100%, with some experts warning it could go as high as 117% of GDP by 2030. U.S. Treasury Secretary Janet Yellen has acknowledged that the debt to GPD ratio will exceed 100% with Biden’s Budget plans but stresses that low-interest rates will not hurt the overall economy and debt.
Discretionary spending would increase by 8.4%
Non-defence spending would increase by 16%
Defence spending would increase 1.7%
The budget also serves as a policy insight and will lay out what the Biden’s larger domestic policy plan is.