The “Big Law and Beautiful” Budget voted by the American Congress favors security and immigration problems to the detriment of social and ecology, but above all, the country’s deficit should increase. According to the forecasts of the American Treasury, cited by ReutersThe US debt index to GDP should increase and reach more than 200% in 2050 and even 535% of GDP by the end of the century.
Several weeks ago, the CBO, the Congress Budget Office, estimated that the voted text would result in cumulative deficits, which increases public debt, from the order of $ 2,400 billion by 2034. The total debt of the world’s main power amounts to almost 37,000 billion dollars.
Particularly critical of Trump’s budget bill in recent weeks, Elon Musk liked a message generated by the Grok artificial intelligence tool in his social network X shortly after the adoption of the text:
“Imagine that the government is like a large family that spends much more money than you earn: $ 7 for $ 5 cattle. Therefore, it takes a lot very borrowed, and each family now owes about $ 230,000. Soon, $ 425,000! For authorities to eliminate funny activities, increase the ‘cracks’ (taxes) or print more money, which would reduce the value of the dollars value.
An extension of expensive tax credits
The text particularly provides the extension of the monumental tax credits of the first mandate of the Republican billionaire, which arrive at the end of the year. According to several independent analysts, extending the huge tax credits of Trump’s first mandate could increase the federal state deficit by $ 2,000 billion to $ 4,000 billion in the next decade.
The American executive ensures that the “big and beautiful law”, as Donald Trump calls it, provides reductions of “permanent” expenses of $ 1,400 billion and will finally lead to a “net reduction” of deficits. It also ensures that the customs duties desired by the US President will decrease the deficits of $ 2,800 billion in ten years, without specifying whether this prognosis takes into account the commercial agreements that the US president promises to multiply with foreign countries, agreements that should reduce customs taxes and, therefore, tax revenues.
A constantly increased public deficit
Last January, before the inauguration of Donald Trump, a CBO report indicated that in ten years, the public debt of the world’s first economy should reach $ 52,000 billion. Then it will represent 118% of the Gross Domestic Product (GDP), against 100% in 2025, exceeding “the previous registration of 106% of GDP”, reached in 1946, just after World War II.
The public deficit increased significantly during the first six months of the fiscal year in the United States, including the beginning of the new presidency of Donald Trump that promised to reduce it, according to data from the Ministry of Finance. Between October 2024 and March 2025, the first half of fiscal year 2025, the budget deficit has already increased by 23% compared to the same period last year, to 1,300 billion dollars. The income increased by 3% to 2,300 billion, but the expense increased at the same time from 10% to 3,600 billion. This is the second worst deficit of the United States during this period, the previous one that dates back to the first half of 2021, in the Covid media.
Source: BFM TV
