This Friday, President Joe Biden will present the budget to Congress. The budget for fiscal year 2022 must be debated and approved by Republicans and Democrats.
The crux of the matter is the size of the budget, what sectors it will be allocated to and how it will be financed. The main axes are infrastructure, energy matrix, research and development, social aid and security, the total would be $ 6 trillion.
The proposed security spending would not bet on big changes, maintaining a balance between those seeking an increase and those seeking a decrease. The key issues in this regard remain between the withdrawal of troops from Afghanistan, the presence in the Middle East, cybersecurity, China and Russia. As for the energy matrix, I would point to cleaner energies in order to combat change.
However, the discussion had already arisen weeks ago when the President proposed spending on infrastructure of more than $ 2 trillion. The high budget generated resistance and counterproposals to lower it.
On the part of the Republicans, they proposed in the last hours, an infrastructure budget of $ 928 billions for eight years to be used for roads, bridges and connections in rural areas. The budget proposed by Biden is different because it aimed to include social programs that protect the elderly and disability.
The budget that would include a plan for Jobs and family allowances would be paid for by increasing the tax base of the strata of the population with greater purchasing power.
The resistance around this budget is found in how and to what areas the resources will be allocated, also considering the effects it could have on inflation. Yellen, the Treasury secretary, has already argued that the new plan would have no effect on inflation.