Trump's balanced-budget goal depends not only on the growth projections that most economists view as overly optimistic but also a variety of accounting gimmicks, including an nearly $600 billion peace dividend from winding down overseas military operations and "double counting" $2.1 trillion in revenues from economic growth - using them to both pay for tax cuts and bring down the deficit. It also would cut $18 billion out of another government transit grant program called New Starts.
The Bipartisan Policy Center, which analyzes federal receipts and spending, had estimated that the government had until November to address the debt ceiling issue, but it recently moved up its projection to October 2 because tax receipts are coming in slower than expected and a huge federal payment is due that day.
In his testimony Wednesday, Mulvaney defended the president's proposal as conscientious government spending.
"We no longer want to measure compassion by the number of programs that we have or the number of people that are on those programs". These votes can be very politically unpopular, but many business groups have warned that failing to raise the debt ceiling could lead to a financial crisis, because the USA government might not have enough money to pay its bills.
"AHCA/NCAL continues to review President Trump's FY 2018 comprehensive budget".
Trump's plan aims for 3 percent economic growth, much faster than the economy has grown recently.
The Congressional Budget Office plans to release its estimate Wednesday of what impact the Republican House-passed health care bill would have on coverage and premiums.
"If that's where you are, don't accept it". "If that's where you are, don't accept it - 3 percent growth is not something we should talk about, but something that should drive everything".
Rep. Bill Johnson, a Republican whose district encompasses eastern and southeastern OH, challenged Mulvaney on the wisdom of the budget's call to eliminate the Appalachian Regional Commission.
Mr Mulvaney told the House Budget Committee that he went "line by line" through the federal budget and asked "Can we justify this to the folks who are actually paying for it?" I think CDC (Centers for Disease Control) is not likely to be cut.
"It assumes that the stars perfectly align with regard to economic drivers", Sanford added. To account for this, the Trump administration said the economic growth from tax cuts would make up the difference.
Panel Democrats charged that President Trump's cuts would rip apart the social safety net.
But to achieve balance, Trump is seeking sharp cuts in a variety of programs for the poor from Medicaid to food stamps and disability payments.
"This is a moral document and here's the moral side - If I take money from you and have no intention of ever giving it back, that's not debt, that's theft", Mulvaney replied.
Trump's budget fulfills his campaign pledge to leave Medicare and Social Security benefits alone and boosts spending for the military and veterans.
Mulvaney was responding to the deluge of criticism that followed the rollout of President Donald Trump's first full budget proposal earlier this week, even though it faces certain changes in Congress.
In addition to the widespread cuts, the budget also contains a rather large accounting mistake.
The outline says the $2 trillion will pay for Trump's tax reform, while simultaneously saying that same money will be used to balance the budget.
Mulvaney said the proposed spending plan includes no Medicaid cuts as far as "what ordinary human beings would refer to as a cut".