02/15/11

Permalink Obama announces budget with plans to cut $1.1tn over a decade

US President Barack Obama has unveiled his budget for the 2012 fiscal year which aims to cut $1.1 trillion (€820 billion) from the country’s deficit over the next decade. The budget is described by Obama as a “downpayment” on fiscal control but the opposition Republican party said that the US was still taxing and borrowing too much. The president’s announcement kick starts months of wrangling with congress, where Republicans, who control the House of Representatives, are calling for deeper cuts. A long process of negotiation will be needed before a budget is agreed on and passed into law. Obama’s budget proposes total spending of $3.73 trillion in the 2012 fiscal year, which begins in October. That is a 2.4 per cent reduction from the current year.

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