President Obama presented budget proposals for the upcoming financial year in what will be his last budget proposal as President of the United States. Experts take note of the minimal but effective changes made to previous year’s items. However, the Oil and gas sector has been targeted with a $10 Tax fee proposal on oil barrels meant to compensate for climate change and infrastructural depreciation.
The entire budget estimate for the 2017 financial year stands at around $4.1 trillion. President Obama’s administration intends to invest more in Cybersecurity, Infrastructure, Education and Job Creation. The budget proposal also steps up efforts to fight terrorism as seen in the allocation of $11 billion for the Defense Sector. The administration plans to pursue the stabilization of Syria and the eradication of the Islamic State this year.
President Obama expressed his optimism concerning the prosperity and security of the American Society during the release of the proposal. Indeed, America needs to prioritize reforms in Immigration, National Security, and Healthcare. For instance, the budget estimated a total of $19 billion as an adequate amount to invest in matters of Cybersecurity around the country.
Obama became the bearer of good news as he declared massive savings regarding deficit. The current budget leaves a deficit gap of around $616 billion while the proposed budget scales the deficit down to $503 billion. In just a decade, the deficit cuts may amount to almost $3 trillion according to official figures.
The additional tax on oil barrels is like a progressive measure to atone for the environmental effects of climate change that the country has played a part in accelerating. It could also allow the US to develop high-tech infrastructure over the next few years. The tax levy could raise another $300 billion from oil and gas companies in five years for such purposes. More jobs would be created; oil consumption scaled down for green energy options and a cleaner transportation system adopted on a scale of 50% of the current transport networks.
Elsewhere, the budget proposal could attract massive opposition from the Republican party who remain opposed to Obama’s fiscal policies. Some concerns have already been raised concerning the sustainability of such projects as well as the economic growth rate of the world’s largest economy.