Trump's budget would reduce deficit but wouldn't balance like White House promised, CBO says 1:26 PM ET Thu, 13 July 2017 | 00:46

President Donald Trump's budget would reduce the federal deficit — but it would not balance the budget over a decade as the White House promised, the nonpartisan Congressional Budget Office said Thursday.

Its report said that over a decade, the president's proposed fiscal 2018 budget would reduce the cumulative deficit by one-third relative to the CBO's baseline projection that assumes revenue and spending policies would stay largely unchanged. Debt as a percent of GDP would be an estimated 80 percent, 11 percent lower than under current projections, the CBO said.

The U.S. would run a budget deficit of $720 billion in 2027, versus the surplus that the White House projected under its policy, according to CBO estimates. The projection said Trump's budget would make the deficit fall by $3.3 trillion from 2018 to 2027, a much lower reduction than what the White House promised.

When Office of Management and Budget Director Mick Mulvaney projected a balanced budget in 10 years, many skeptics raised concerns about the underlying calculations.