US President Barack Obama on Saturday insisted that the annual federal budget he plans to unveil Monday would contain major spending cuts that tackle the countrys skyrocketing deficit.
The proposed budget for the fiscal year 2012, which begins in September, will help us live within our means while investing in our future, Obama said in his weekly radio address.
Obama released few new details before Mondays unveiling. The president has already pledged a five-year freeze in discretionary spending - excluding entitlement programmes and defence - which the White House says will save 400 billion dollars in the next decade.
Obama can expect a major battle with Republicans, who took control of the lower legislative body, the House of Representatives, in January and will have to sign off on any federal budget proposals.
Conservative lawmakers are lobbying for much more drastic spending cuts, including slashing 100 billion dollars from the current budget that runs until September.
The Republican Party is battling its own internal discord between a more cautious veteran leadership and incoming Tea Party-backed lawmakers that want more immediate cuts.
Congressional researchers have predicted the budget deficit for 2011 will rise to a record 1.5 trillion dollars, or just under 10 per cent of economic output.
Obama has singled out education, infrastructure and research and development as three areas where he refuses to cut back on spending, calling them critical for keeping the country competitive. |
