WASHINGTON, July 13 (Reuters) - The nonpartisan Congressional Budget Office said on Thursday that President Donald Trump's 2018 budget would reduce the federal deficit over the next decade but the reduction will be lower than White House estimates due to slower economic growth. Thursday's Congressional Budget Office report says that Trump's budget, if followed to the letter, would result in a US$720-billion deficit at the end of 10 years instead of the slight surplus promised. On Thursday, the White House budget office took heart that CBO credited it with US$4.2 trillion worth of spending cuts over the upcoming decade, including US$1.9 trillion from health-care programs; it also says the administration would cut taxes by almost US$1 trillion over that time, mostly because of its plans to repeal the Affordable Care Act. Trump's 2018 fiscal budget would cause the federal budget deficit to shrink relative to the size of the economy over the next 10 years, ranging between 2.6 percent to 3.3 percent of Gross Domestic Product (GDP) during that period, the CBO said.
The Congressional Budget Office estimates that in ten years the federal budget of U.S. President Donald Trump will produce a $720 billion deficit rather than a $16 billion surplus as claimed by the Trump administration.