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Obama to call for spending freeze | Obama to call for spending freeze |
(10 minutes later) | |
US President Barack Obama is to announce a three-year partial spending freeze aimed at reducing the country's $1.4tn (£860bn) budget deficit. | US President Barack Obama is to announce a three-year partial spending freeze aimed at reducing the country's $1.4tn (£860bn) budget deficit. |
His first State of the Union address, on Wednesday, will reveal the details. | His first State of the Union address, on Wednesday, will reveal the details. |
Officials have told US media that defence, some health care programmes and the massive economic stimulus package will be unaffected. | Officials have told US media that defence, some health care programmes and the massive economic stimulus package will be unaffected. |
Critics said the planned savings, expected to cut no more than $15bn off next year's budget, were insufficient. | Critics said the planned savings, expected to cut no more than $15bn off next year's budget, were insufficient. |
But officials said the plan would result in savings of about $250bn during the next 10 years. | But officials said the plan would result in savings of about $250bn during the next 10 years. |
The spending freeze covers many domestic programmes and departments to which Congress allocates budgets each year, including agriculture, transportation and education and national parks. | The spending freeze covers many domestic programmes and departments to which Congress allocates budgets each year, including agriculture, transportation and education and national parks. |
Security and defence spending, foreign aid, social security and spending on health care for the poor and retired would be exempt. | Security and defence spending, foreign aid, social security and spending on health care for the poor and retired would be exempt. |
This is like announcing you're going on a diet after winning a pie-eating contest Michael SteelSpokesman for House Minority Leader John Boehner | |
Mr Obama is facing mounting criticism for the amount of government spending and growing budget deficits. | Mr Obama is facing mounting criticism for the amount of government spending and growing budget deficits. |
The 2009 fiscal year saw a record $1.4tn shortfall and an even bigger one is forecast for 2010. | The 2009 fiscal year saw a record $1.4tn shortfall and an even bigger one is forecast for 2010. |
The freeze could make the president rein in his ambitious reform agenda, especially with regards to education and the environment. | The freeze could make the president rein in his ambitious reform agenda, especially with regards to education and the environment. |
But one administration official said it was like a family in tough times deciding on its budget. | But one administration official said it was like a family in tough times deciding on its budget. |
"That's the decision-making process the president and the economic team went through," Associated Press quoted the unnamed official as saying. | "That's the decision-making process the president and the economic team went through," Associated Press quoted the unnamed official as saying. |
"It's the very same process American families have gone through for the past several years." | "It's the very same process American families have gone through for the past several years." |
Republicans say the cuts are insufficient. | Republicans say the cuts are insufficient. |
"Given Washington Democrats' unprecedented spending binge, this is like announcing you're going on a diet after winning a pie-eating contest," said Michael Steel, a spokesman for House Minority Leader John Boehner. | "Given Washington Democrats' unprecedented spending binge, this is like announcing you're going on a diet after winning a pie-eating contest," said Michael Steel, a spokesman for House Minority Leader John Boehner. |