During a speech at the White House on Wednesday, President Biden will emphasize deficit reduction, noting that the government will pay down its debts for the first time in six years this quarter.
In the run-up to the midterm elections, President Biden has placed renewed emphasis on deficit reduction. Administration officials said that the $1.9 trillion in coronavirus relief approved in 2021 has already paid off in the form of higher economic growth, making it easier for fiscal stability to be achieved.
A White House official who previewed the speech on condition of anonymity said Biden will emphasize how increased job creation has contributed to increased personal income and tax revenues, which has improved the balance sheet of the government.
Besides the quarterly reduction in the national debt, the Treasury Department estimates that this fiscal year’s budget deficit will decline $1.5 trillion. That decrease marks an improvement from initial forecasts and would likely put the annual deficit below $1.3 trillion.
4 May 2022
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