Obama proposes 4 trillion USD budget for 2016
Updated: 2015-02-03 09:01
US President Barack Obama talks about the FY2016 budget while at the Department of Homeland Security in Washington, February 2, 2015. [Photo/Agencies]
WASHINGTON - The US President Barack Obama announced a record $4 trillion budget proposal for 2016 on Monday, as he sought to boost spending on infrastructure, education and research to make the country more competitive and strengthen the lackluster middle-class.
The 3.999 trillion budget represents an increase of 6.4 percent from the previous year, and deficit will decline to $474 billion, or 2.5 percent of the nation's Gross Domestic Product (GDP), lower than the 3.2 percent recorded in the fiscal year 2015.
In the new budget outlined for the fiscal year starting Oct 1, Obama budgeted $605 billion for defense spending and $563 billion for non-defense spending. Welfare expenditures including social security and Medicare and Medicaid totaled $2.54 trillion.
The budget will cash $478 billion into renovating the nation's obsolete roads and bridges, help provide two years of free community college, boost spending on research and development, and reverse sequestration, or the across-the-board, automatic budget cuts that have slammed the Pentagon and nearly every government department.
To increase fiscal revenue, the budget proposed to tax the wealthy and close corporate tax loopholes. The proposal will boost federal spending by $74 billion, of which $38 billion will be spent on defense.
The Obama administration projected the deficit will remain under $500 billion a year through 2018, but would rise to $687 billion by 2025. But it noted the levels of deficit could still be considered manageable when measured against the size of the economy.