WASHINGTON: US President Donald Trump will propose on Monday a 21 percent cut in foreign aid and slashes to social safety-net programs in his $4.8 trillion budget proposal for fiscal 2021, according to senior administration officials.
The budget would spend money to fund infrastructure projects and defense, but would also raise funds by targeting $2 trillion in savings from mandatory spending programs in the United States. It assumes revenues around $3.7 trillion.
Trump, a Republican, sought in his budget proposal last year to slash foreign aid but faced steep resistance from Congress and did not prevail.
The president’s latest blueprint for administration spending proposals is unlikely to be passed by the Democratic-controlled House of Representatives, particularly in an election year.
Trump, who campaigned for the presidency in 2016 on a promise to build a wall along the US border with Mexico, will seek $2 billion in funding for further construction on that project, substantially less than the $8.6 billion he requested a year ago.
During the 2016 campaign, Trump said Mexico would pay for the wall, which it has refused to do.
The administration shifted resources from the military last year after Congress refused Trump’s initial wall funding request. The White House will not seek further funds from the military for the wall, a senior administration said.
The budget seeks money to fund a US infrastructure overhaul that both Democrats and Republicans have said is a priority. The two sides are unlikely to agree on any major legislation this year, though, as they fight for control of the White House and Congress in the November elections.
The budget would raise military spending by 0.3 percent to $740.5 billion for fiscal-year 2021, starting on Oct. 1 and propose higher outlays for defense and veterans, administration officials confirmed.
But former Chairman of the Joint Chiefs of Staff Mike Mullen raised concerns about how the foreign aid cuts would affect the US civilian footprint around the world that helps reduce the need for military intervention.
“In an era of great power competition, cutting these critical investments would be out of touch with the reality around the world,” he wrote in a letter to top congressional leaders. “This is a moment when more investment in diplomacy and development is needed not less.”
Trump’s foreign aid proposal seeks $44.1 billion in the upcoming fiscal year, compared with $55.7 billion enacted in fiscal 2020, an administration official said.
The White House proposes to slash spending by $4.4 trillion over 10 years.
In the fiscal-year 2021 budget, that would include $130 billion from changes to prescription-drug pricing for the Medicare program for older Americans, $292 billion from cuts in safety-net programs — such as work requirements for the Medicaid program for the poor, and food stamps — and $70 billion from clamping down on eligibility rules for federal disability benefits. Those changes are likely to spur Democrats’ ire.
Deficits would remain high but eventually come down.
The US government ended fiscal 2019 with the largest budget deficit in seven years as gains in tax receipts were offset by higher spending and growing debt-service payments, the Treasury department said on Friday.
The budget forecasts $4.6 trillion in deficit reduction over 10 years and assumes economic growth will continue at an annual rate of roughly 3 percent for years to come, officials said. Trump has taken credit for the strength of the US economy, thanks in part to tax cuts he championed and Congress passed earlier in his term. The budget funds an extension of those cuts over a 10-year period with $1.4 trillion.
Trump slashes foreign aid, cuts safety net programs in new budget proposal
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Trump slashes foreign aid, cuts safety net programs in new budget proposal
- The fiscal 2021 budget would spend money to fund infrastructure projects and defense
- Budget seeks money to fund a US infrastructure overhaul that both Democrats and Republicans have said is a priority
Norway PM worried by Musk involvement in politics outside US
“I find it worrying that a man with enormous access to social media and huge economic resources involves himself so directly in the internal affairs of other countries,” Stoere told Norwegian public broadcaster NRK.
“This is not the way things should be between democracies and allies,” he added.
If Musk were to involve himself in Norwegian politics, the country’s politicians should collectively distance themselves from such efforts, Stoere said.
Russia says captured key town in eastern Ukraine
MOSCOW: Russian forces have captured the town of Kurakhove in eastern Ukraine, Russia’s defense ministry said on Monday, in a key advance after months of steady gains in the area.
Russian units “have fully liberated the town of Kurakhove — the biggest settlement in southwestern Donbas,” the ministry said on Telegram.
Canada PM Trudeau to announce resignation as early as Monday – reports
- Unclear whether Trudeau will leave immediately or stay on as PM until new leader is selected, says report
- Polls show Liberals will badly lose to the Conservatives in an election that must be held by late October
Canadian Prime Minister Justin Trudeau is expected to announce as early as Monday that he will resign as Liberal Party Leader, The Globe and Mail reported on Sunday, citing three sources.
The sources told the Globe and Mail that they don’t know definitely when Trudeau will announce his plans to leave but said they expect it will happen before a key national caucus meeting on Wednesday.
The Canadian prime minister’s office did not immediately respond to a request for comment outside regular business hours.
It remains unclear whether Trudeau will leave immediately or stay on as prime minister until a new leader is selected, the report added.
Trudeau took over as Liberal leader in 2013 when the party was in deep trouble and had been reduced to third place in the House of Commons for the first time.
Trudeau’s departure would leave the party without a permanent head at a time when polls show the Liberals will badly lose to the Conservatives in an election that must be held by late October.
His resignation is likely to spur fresh calls for a quick election to put in place a government able to deal with the administration of President-elect Donald Trump for the next four years.
The prime minister has discussed with Finance Minister Dominic LeBlanc whether he would be willing to step in as interim leader and prime minister, one source told the newspaper, adding that this would be unworkable if LeBlanc plans to run for the leadership.
South Korea’s military says North Korea fired missile into eastern sea
- The South’s Joint Chiefs of Staff said the missile was fired from an area near Pyongyang
- Seoul denounces the launch as a provocation that poses a serious threat on the Korean Peninsula
SEOUL: North Korea on Monday fired a ballistic missile that flew 1,100 kilometers before landing in waters between the Korean Peninsula and Japan, South Korea’s military said, extending its heightened weapons testing activities into 2025 weeks before Donald Trump returns as US president.
The South’s Joint Chiefs of Staff said the missile was fired from an area near the North Korean capital of Pyongyang and that the launch preparations were detected in advance by the US and South Korean militaries. It denounced the launch as a provocation that poses a serious threat to peace and stability on the Korean Peninsula.
The joint chiefs said the military was strengthening its surveillance and defense posture in preparation for possible additional launches and sharing information on the missile with the United States and Japan.
The launch came as US Secretary of State Antony Blinken was visiting Seoul for talks with South Korean allies over the North Korean nuclear threat and other issues.
Blinken’s visit comes amid political turmoil in South Korea following President Yoon Suk Yeol’s short-lived martial law decree and subsequent impeachment by parliament last month, which experts say puts the country at a disadvantage in getting a steady footing with Trump ahead of his return to the White House.
In a year-end political conference, North Korean leader Kim Jong Un vowed to implement the “toughest” anti-US policy and criticized the Biden administration’s efforts to strengthen security cooperation with Seoul and Tokyo, which he described as a “nuclear military bloc for aggression.”
North Korean state media did not specify Kim’s policy plans or mention any specific comments about Trump. During his first term, Trump met Kim three times for talks on the North’s nuclear program.
Many experts, however, say a quick resumption of Kim-Trump summitry is unlikely as Trump would first focus on conflicts in Ukraine and the Middle East. North Korea’s support for Russia’s war against Ukraine also poses a challenge to efforts to revive diplomacy, experts say.
Before his presidency faltered over the ill-conceived power grab, Yoon worked closely with US President Joe Biden to expand joint military exercises, update nuclear deterrence strategies and strengthen trilateral security cooperation with Tokyo.
Indonesia launches free meals program to feed children and pregnant women to fight stunting
- Many children are malnourished and promise is to provide free school lunches and milk as part of a longer-term strategy to achieve a “Golden Indonesia” generati
JAKARTA: Indonesia’s new government started an ambitious $28 million project Monday to feed nearly 90 million children and pregnant women to fight malnutrition and stunting although critics question whether the nationwide program is affordable.
The Free Nutritious Meal program delivers on a campaign promise by President Prabowo Subianto, who was elected last year to lead the nation of more than 282 million people and Southeast Asia’s largest economy. He said the program aimed to fight the stunting of growth that afflicts of 21.5 percent of Indonesian children younger than 5 and would raise the earnings of farmers and the value of their harvest.
Subianto has pledged to accelerate GDP growth to 8 percent from 5 percent now.
In his inauguration speech in October, Subianto said many children are malnourished and his promise to provide free school lunches and milk to 83 million students at more than 400,000 schools across the country is part of a longer-term strategy to develop the nation’s human resources to achieve a “Golden Indonesia” generation by 2045.
“Too many of our brothers and sisters are below the poverty line, too many of our children go to school without breakfast and do not have clothes for school,” Subianto said.
Subianto’s signature program, which had included free milk, could cost upward of 450 trillion rupiah ($28 billion). He said his team had made the calculations to run such a program, and “We are capable,” he asserted.
The government’s target is to reach 19.47 million schoolchildren and pregnant women in 2025 with a budget of 71 trillion rupiah ($4.3 billion) so as to keep the annual deficit under a legislated ceiling of 3 percent of GDP, said Dadan Hindayana, the head of the newly formed National Nutrition Agency.
Hindayana said the money would buy an estimated 6.7 million tons of rice, 1.2 million tons of chicken, 500,000 tons of beef, 1 million tons of fish, vegetable and fruit, and 4 million kiloliters of milk, and at least 5,000 kitchens would be set up across the country.
On Monday, a truck carrying about 3,000 meal portions arrived before lunch at SD Cilangkap 08, a primary school in the Jakarta satellite city of Depok. The 740 students were provided plates containing rice, stir-fried vegetables, tempeh, stir-fried chicken and oranges.
“We send a team to each school to facilitate the meal distribution to students every day,” Hindayana said, adding that the program will provide one meal per day for each student from early childhood education to senior high school levels, covering a third of the daily caloric needs for children, with the government providing the meals at no cost to recipients.
But the populist program has drawn criticism from investors and analysts, ranging from conflation with the interests of industrial lobby groups or the sheer scale of the logistics required, to the burden on Indonesia’s state finances and economy.
Economic researcher from the Center of Economic and Law Studies, Nailul Huda, said with Indonesia’s tight fiscal condition, state finances are not strong enough to support the fiscal burden and this will lead to additional state debt.
“That is not comparable to the effect of free meals program which can also be misdirected,” Huda said, “The burden on our state budget is too heavy if it is forced to reach 100 percent of the target recipients, and it will be difficult for Prabowo’s government to achieve the economic growth target of 8 percent.”
He warned it could also worsen the external balance of payments for the country, which is already a major importer of rice, wheat, soybeans, beef and dairy products.
But Reni Suwarso, the director of Institute for Democracy, Security and Strategic Studies said the stunting rate in Indonesia is still far from the target of a 14 percent reduction in 2024.
According to the 2023 Indonesian Health Survey, the national stunting prevalence was 21.5 percent, down around 0.8 percent compared to the previous year. The United Nations Children’s Fund or UNICEF estimated one in 12 Indonesian children younger than 5 are wasted while one in five are stunted.
Wasting refers to low weight for the child’s height, while stunting refers to low height for the child’s age. Both conditions are caused by malnourishment.
“That’s so bad and must be solved!” Suwarso said, “Child malnourishment have severe consequences, threatening the health and long-term development of infants and young children throughout this nation.”
