Analysts at UOB Group explained that on Monday (12 Feb), US president Trump unveiled his fiscal 2019 Budget plan.
"Trump administration’s US$4.4 trillion budget request for fiscal 2019 seeks US$1.7 trillion of cuts to mandatory spending and receipts (including non-defense spending cuts of 2%/year after 2019 and Medicare spending cuts of $237b over 10 years)."
"The budget proposal’s infrastructure plan includes US$200 billion funds in the hopes of spurring a total of US$1.5 trillion in investments including state, local and private funds."
"The newest elements of the proposal include expanding the use of tax-exempt debt, letting states add tolls on interstates and making it easier to lease airports and other public assets."
"The Budget is based on very optimistic US real GDP growth forecasts (revised to 3.0% and above in 2018-2020 from below 3% previously) while forecasting very benign US CPI inflation during the same period."
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