Sen. Rand Paul unveils balanced budget plan as deficit explodes

America’s national budget deficit has exploded in recent years. The Bipartisan Policy Center reported that it grew from $948 billion in September of 2019 to nearly $2.8 trillion by the same point in 2021.

Although its size has since declined, Sen. Rand Paul (R-KY) insists that the deficit remains far too high. This week, he announced a plan to eliminate it. 

Budget surplus by 2027

Fox Business reported on Monday that the Kentucky Republican unveiled a spending reduction program that he says will balance the budget over five years.

“Five years ago, we could balance our budget with a freeze in spending. Not cut anything. Since then, our debt has skyrocketed to $30 trillion with $2 trillion just from this past year,” Fox Business quoted Paul as saying in a statement.

“We cannot keep ignoring this problem at the expense of taxpayers, and my budget will put our nation on track to solve this crisis that Congress created,” the lawmaker went on to insist.

Paul’s proposal would impose a fiscal freeze in 2023 at the Congressional Budget Office’s projected baseline spending level of $5.874 trillion.

Following years

The following year would see a budgetary reduction of $298.3 billion with additional cuts in subsequent years until a  $65.8 billion surplus is reached in 2027.

The plan does not provide much in the way of specific details aside from stressing that Social Security will not be touched.

Rather it establishes a spending limit within which Congress must operate, allowing budgetary decisions to be made as the need arises.

Deficit going up in ’24

However, Fox Business stated that Paul’s suggestion has only a “slim” chance of being enacted, as he “has introduced near-identical versions of the bill in the past, all of which have died in the Senate as the result of bipartisan opposition.”

What’s more, although the network acknowledged that this year’s budget deficit is projected to reach $1 trillion, experts expect it to begin climbing again in 2024.

Maya MacGuineas serves as president of the Committee for a Responsible Federal Budget, and she cautioned that “[t]his is no time to break out the champagne glasses – deficits will remain extremely high and debt is on course to reach a new record as a share of the economy by 2031.”

 

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