The Pentagon’s budget is going to fall from $716 billion in 2019 to $700 billion (2.3 percent) in 2020. The US military had been planning on a $733 billion budget in 2020 but Trump has ordered a 5% budget cut.
In Fiscal Year 2019, the federal budget will be $4.407 trillion. The budget cut will not change medicare or social security or interest payment (total of about $2.5 trillion). A 5% budget cut across the board would cut about $100 billion. This would keep deficits stable at about $800 billion.
The order to cut came directly from Office of Management and Budget director Mick Mulvaney. All federal agencies and departments had been ordered to make 5% budget cuts.
In his most recent cabinet meeting, President Trump called on every department head to come to the next meeting with a plan to cut 5% of their budgets.
The government reported a 17% jump in the budget deficit for the fiscal year that ended Sept. 30.
The budget deficit grew to $779 billion as the economy is growing by about 3.4% in 2018. The first three quarters had 2.2%, 4.2% and 3.5% growth. The full 2018 year looks like it will have 3.1 to 3.5% GSP growth.
The talk for the 5% cut is that the F-35 program will be protected but buying new ships for the 355 ship plan will be delayed. Other new equipment and some modernization programs will be delayed.