President Donald Trump unveiled his first budget proposal for fiscal 2018. The $4.1 trillion budget titled A New Foundation for American Greatness seeks to eliminate fiscal deficit over the next decade. In order to accomplish this, the budget calls for $3.6 trillion in spending reductions and a boost to military spending over 10 years.
The budget is also aimed at balancing and reducing publicly held debt from 77% of GDP in 2018 to 60% of GDP, the lowest level since 2010, by the end of the 10-year budget window. The plan would swing from a deficit of $440 billion in 2018 to a surplus of $16 billion in 2027, for the first time since 2001. Trump expects the budget to lead to accelerated GDP growth of 3% from the current 1.9%.
Here are the key takeaways from the budget and their expected impact on ETFs: