It is believed that the budget would add up to $1.5trn to the federal deficit over the next decade to pay for the tax cuts.

The Senate majority leader Mitch McConnell said yesterday following the 51-49 vote: “We [have] completed the first step forward toward replacing our broken tax code... We have a once-in-a-lifetime opportunity to replace a failing tax code that holds Americans back with one that actually works for them.”

Following Thursday’s approval of the Republican-backed budget for the 2018 fiscal year, European stocks, the dollar and bond yields climbed early on Friday.

Trump said on Twitter following the passing: “This allows for the passage of large scale Tax Cuts (and Reforms), which will be the biggest in the history of our country!”

At the end of last month, Trump outlined his “pro American” tax cuts in a bid to make the country more competitive and boost economic growth.

The Republican tax framework includes a larger zero tax bracket, lower tax rates for individuals, lower small-business tax rates and corporate tax rates.

Trump said: “The current tax system is a colossal barrier standing in the way of America’s economic comeback... We’re going to remove that barrier to create the tax system our people finally, finally, finally, want and deserve.”

The US president also said he would “repeal and replace” Obamacare and cut subsidies to health insurance companies for low-income citizens.

 The White House has said the bill’s passing creates a “pathway” for the economy to meet its full “potential” through tax reform and cuts.