U.S. cuts defense spending

Public expenditures of the United States declined significantly during the presidency of Barack Obama. For example, spending on defense programs gradually reduced starting from 2010. Expected to 2023 they reach the lowest level in 50 years, CNN Money informs.

In 2010 discretionary spending amounted to 9.1% of GDP. Much of this was due to the necessity of pulling the economy out of recession. However, despite a considerable amount of investment, the rate was less than 40 years of record of 10%, which was achieved in 1983. The average in government spending over the past half century as 2010 amounted to 8.4%.

Today, the level of public spending is much lower. The Congressional Budget Office predicts that by 2023 discretionary spending will fall to 5.3 % of GDP. This will be the lowest since 1962.

Obama can not take out loans in order to increase the amount of expenses that are not related to life - necessary. This situation is due to the law on budgetary control, which was signed in 2011 to prevent the accumulation of the maximum amount of public debt.

Law on Budgetary control caused an arbitrary budget cuts. In particular this has led to a decrease in domestic spending on defense. The law defined the prospects to restrain discretionary spending for the next decade.

In addition, under the leadership of Obama, the deficit reached a record high in 2009 at 9.8 % of the total economy performance. However, it should be noted that the rate decreases with each passing year. According to forecasts, this year's deficit will be 3.4% of GDP, in 2015 it shall drop to 2.1 %.