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Obama to unveil US budget plans for 2012 | Obama to unveil US budget plans for 2012 |
(about 2 hours later) | |
US President Barack Obama will unveil a 2012 budget plan later, which is expected to cut domestic spending. | US President Barack Obama will unveil a 2012 budget plan later, which is expected to cut domestic spending. |
Cuts are expected to hit home heating, community development and education, as Washington aims to cut $1.1tn (£690bn) from the US deficit over a decade. | Cuts are expected to hit home heating, community development and education, as Washington aims to cut $1.1tn (£690bn) from the US deficit over a decade. |
White House budget director Jack Lew told CNN that there were "scores of programmes" that were being reduced. | White House budget director Jack Lew told CNN that there were "scores of programmes" that were being reduced. |
Republicans, who control the House of Representatives, do not think the cuts go far enough in tackling the deficit. | Republicans, who control the House of Representatives, do not think the cuts go far enough in tackling the deficit. |
House of Representatives Speaker, Republican John Boehner, told NBC the proposed budget would "continue to destroy jobs by spending too much, borrowing too much and taxing too much". | House of Representatives Speaker, Republican John Boehner, told NBC the proposed budget would "continue to destroy jobs by spending too much, borrowing too much and taxing too much". |
Long process | |
Analysts have also wondered if cutting $1.1tn will be enough. | |
"It's a lot less than the Republicans wanted to see," said Philip Poole, global head of macro investment at HSBC Global Asset Management in London. | |
"It's a start, it's a move in the right direction, but it's probably not enough in terms of what needs to be done ultimately, and it's not starting quickly enough." | |
The deficit is to predicted to rise to $1.645tn in the 2011 financial year, then fall to $1.101tn in 2012. | |
The 2012 budget is a proposal to Congress laying out the president's policy priorities. | |
Mr Lew, director of the Office of Management and Budget, said he believed the president's budget would help "the government live within its means, while still investing in America's future". | |
But the two parties disagree over the level of spending cuts needed to cut the deficit and boost economic recovery. | |
Bringing them together will be a long process that takes most of the year before the required congressional approval of the budget. | Bringing them together will be a long process that takes most of the year before the required congressional approval of the budget. |
'Hard times' | 'Hard times' |
The proposed $1.1tn budget reductions are much greater than the $400bn of cuts in non-essential programmes the president unveiled in his State of the Union address last month. | |
Mr Obama is also believed to be about to give states more flexibility to pay for unemployment benefits. | Mr Obama is also believed to be about to give states more flexibility to pay for unemployment benefits. |
And he is set to propose an $18bn plan to improve high-speed internet access, and a further $8bn for high-speed railways. | |
In his weekly message to the nation on Saturday, Mr Obama said the government would have to tighten its belt. | In his weekly message to the nation on Saturday, Mr Obama said the government would have to tighten its belt. |
"This budget asks Washington to live within its means, while at the same time investing in our future," he said. | "This budget asks Washington to live within its means, while at the same time investing in our future," he said. |
"It cuts what we can't afford, to pay for what we cannot do without. | "It cuts what we can't afford, to pay for what we cannot do without. |
"That's what families do in hard times. And that's what our country has to do too." | "That's what families do in hard times. And that's what our country has to do too." |