Large reduction in foreign aid likely.

U.S. President Donald Trump on Monday teased a budget plan that includes a substantial increase in defence spending and cuts in foreign aid.

Previewing a plan that will attempt to translate campaign promises into dollars and cents, Mr. Trump promised a “public safety and national security budget”.

An administration official said that Mr. Trump’s plan would include a $54 billion increase in defence spending and a corresponding decrease in non-military programmes.

“Most federal agencies will see a reduction as a result,” the official said.

There will also be a “large reduction in foreign aid” he said, on condition of anonymity.

The proposal, which will be picked over and must ultimately be approved by Congress, would increase defence spending — already the largest in the world — by almost 10%.

Meanwhile, officials said the Pentagon has finished plans to intensify the fight against the Islamic State (IS).

Mr. Trump had demanded that top brass find additional ways to defeat jihadists.

That review is now complete, and Defense Secretary Jim Mattis was to present the findings to Mr. Trump’s top national security advisors later Monday.