May 28, 2021 4:02 PM | With information from EFE
15 minutes. The White House on Friday sent the US Congress its national budget proposal for fiscal year 2022, valued at $ 6 trillion, which will take federal spending to its highest level since World War II.
In the document sent to the Legislature, US President Joe Biden assures that it is a budget that aims to rebuild the country’s economy “Putting the needs, goals, ingenuity and strength of the American people front and center”.
The plan released by the White House includes three major spending proposals already announced by Biden: the $ 2.3 trillion US Employment Plan; the US Families Plan, $ 1.8 billion; and $ 1.5 trillion earmarked for discretionary spending for fiscal 2022.
In US public finances, discretionary spending is government spending implemented through an appropriations bill that must be approved by the Legislature.
The first budget request of the Biden era is committed to empowering workers, families and businesses. This by raising taxes on the upper classes and large corporations, according to the presidential office.
Under the title “Building again better”, the Biden Administration emphasized areas such as infrastructure, scientific research, the fight against climate change, job creation, small and medium-sized enterprises, as well as the manufacturing industry, among other priorities.
In the document, the White House insists that this budget “will increase the economic prosperity over the next decade” for the families of ordinary Americans. That through a plan to increase salaries and increase hiring.
Biden introduced this initiative at a time when job creation unexpectedly came to a halt in the United States in April with just 266,000 new jobs compared to the 1 million expected by analysts.
The unemployment rate, which last year went from 3.5% in February to 14.7% in April, when the COVID-19 pandemic had the greatest impact, has decreased every month since then and in the first four of the year it is around 6%.
In April, however, the unemployment rate rose to 6.1%, one tenth more than in March.
In its macroeconomic forecasts, included in the public spending proposal, the White House calculated that the US economy will grow this year above 5%. This as the country recovers from the pandemic, and by 4.3% in 2022.
On inflation, the Biden Administration projected that it will rise 2% each year for the next decade. Thus meeting the expectations of the US Federal Reserve (Fed).
According to official data, the US had a deficit of 3.1 trillion dollars in fiscal year 2020 and has already accumulated more than 1.9 trillion in the first seven months of fiscal year 2021.
Also, the deficit relative to the country’s gross domestic product (GDP) soared to almost 15% in 2020, the highest level since 1945.