US budget deficit to be trimmed by $1.1 trillion

Washington, Feb 14: These are tough times for Uncle Sam, especially in the economic context. And President Obama, it seems is determined to change things around.

According to White House officials, Obama's 2012 budget plan aims to slash the US deficit by $1.1 trillion (approx Rs 5,20,600 Crore) over a period of 10 years. On Feb 13, budget director, Jack Lew said to the CNN, "We are reducing programs that are important programs that we care about, and we're doing what every family does when it sits around its kitchen table: we're making the choices about what do we need for the future."

However this has not impressed the Republicans. The House of Representatives' Speaker John Boehner spoke on NBC's "Meet the Press". Mr. Boehner said that, "He's going to present a budget tomorrow that will continue to destroy jobs by spending too much, borrowing too much and taxing too much."

The budget proposal appears to be heading for a tough fight between the Democrats and the Republicans.

USA's fiscal deficit is expected to reach $1.48 trillion, which is equivalent to 9.8 per cent of the country's Gross Domestic Product (GDP). Although this would be lesser than the 10 per cent of the GDP in 2010, it would still be higher in the historical context.

OneIndia News