Trump to propose US$4.8t US budget with large cuts in safety nets: WSJ

[BENGALURU] US President Donald Trump will release a US$4.8 trillion budget on Monday that will propose steep cuts to social safety net programmes and foreign aid, the Wall Street Journal reported on Sunday.

The budget will raise military spending by 0.3 per cent to US$740.5 billion for the fiscal year 2021, starting Oct 1, the Journal reported, citing a senior Trump administration official.

It will also propose higher outlays for defence and veterans, according to the report.

Mr Trump, a Republican, on Monday planned to release his budget, a blueprint for administration spending proposals that is unlikely, again, to be passed by the Democratic-controlled House of Representatives, particularly in an election year.

According to the Journal, the White House proposes to slash spending by US$4.4 trillion over 10 years. The Trump budget targets US$2 trillion in savings from mandatory spending programmes, the newspaper said.

That includes US$130 billion from changes to Medicare prescription-drug pricing, US$292 billion from cuts in safety net programmes - such as work requirements for Medicaid and food stamps - and US$70 billion from tightening eligibility rules for federal disability benefits, the Journal reported.

REUTERS