Story highlights Chris Edwards: There is no magic money tree in Washington; states and private sector should pick up slack for cuts in Trump's proposed budget

But, he says, Trump's defense-spending boost doesn't help US save money: entitlement programs hold real key

Still, Edwards says, budget a good first step

Chris Edwards is the director of tax policy studies at the Cato Institute, a libertarian think tank, and editor of www.DownsizingGovernment.org. The opinions expressed in this commentary are solely those of the author.

(CNN) When President Donald Trump released his first budget this week proposing to cut a range of agencies and programs, he declared, in an accompanying message "our budget blueprint insists on $54 billion in reductions to non-defense programs." He said: "We are going to do more with less, and make the government lean and accountable to the people."

Chris Edwards

Many of Trump's proposals will not be greeted warmly on Capitol Hill. And, to be sure the $54 billion in non-defense cuts he put forth are matched by $54 billion in defense spending increases. So that focus on "lean" does not extend to the Pentagon, and there is no overall spending reduction to help get rising deficits under control.

What's more, members of both parties defend subsidy programs that aid their states. Still, the broad sweep of Trump's proposals gives him a strong starting position in budget negotiations. Since he dishes out the pain widely, his cuts will be perceived as being fair, as least by Republican voters.

And for fiscal conservatives there is indeed good news here.

JUST WATCHED Mulvaney: Trump's budget is compassionate Replay More Videos ... MUST WATCH Mulvaney: Trump's budget is compassionate 00:58

The administration targets aid for state and local governments, for example, terminating Community Development Block Grants and the Economic Development Administration, which both provide subsidies for local business activities. It would cut numerous k-12 school programs that the administration says are ineffective. And it would cut various family aid programs, such as Home Energy Assistance and Weatherization Assistance for low-income families.

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