Next Year's US Budget 6700 Trillion Won... Biden-Style 'Big Government'

Increase in Expenditure by 9160 Trillion Won until 2013
Global Economic Steering... Concerns over Inflation Trigger

On the 27th (local time), U.S. President Joe Biden was eating chocolate chip ice cream. On that day, after delivering a speech at Cuyahoga Community College in Cleveland, Ohio, President Biden made a surprise visit to an ice cream shop on his way to the airport.
[Photo by Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] U.S. President Joe Biden is embarking on a full-scale move toward a ‘big government’ based on the $6.7 trillion fiscal year 2022 budget plan. While this budget plan is expected to provide an important compass for not only the U.S. economy but also the global economy amid the COVID-19 crisis, concerns are also being raised that it could trigger inflation.

On the 27th (local time), The New York Times reported that the White House is scheduled to unveil the $6 trillion (approximately 6,700 trillion won) fiscal year 2022 budget plan on the 28th. This budget plan reflects the American Jobs Plan ($2.25 trillion) and the American Families Plan ($1.8 trillion) previously announced by President Biden. Discretionary spending on defense, education, and other areas includes $1.5 trillion.

The budget plan includes large-scale government spending and deficits. Total federal government spending is projected to increase to $8.2 trillion (approximately 9,160 trillion won) by 2031, and the annual fiscal deficit is expected to exceed $1.3 trillion (approximately 1,450 trillion won) over the next decade. The fiscal deficit is estimated to be 16.7% of GDP this year and about 7.8% next year. The size of the federal government debt is expected to surpass the entire U.S. economy, reaching 116% of GDP by 2027.

This budget plan is the first to be released since President Biden took office. The New York Times, which first obtained and reported on the plan, pointed out that it would maintain the highest level of federal spending since World War II. Bloomberg News described it as a comprehensive demonstration of President Biden’s ‘big government’ push to dramatically expand the size and scope of the federal government. The Republican Party is opposing this budget plan.

The infrastructure investment budget amounts proposed by the White House and the Republican Party for negotiations are $1.7 trillion and $928 billion, respectively, showing a significant gap. The New York Times noted that unlike past Democratic administrations, both the U.S. Senate and House of Representatives are controlled by the Democratic Party, making the likelihood of the budget plan’s passage higher than ever before.

This content was produced with the assistance of AI translation services.