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Obama set to unveil austerity plan
B.O.Obama, the US president, is set to unveil his fiscal 2012 budget on Monday, an election-year plan forged from conflicting needs to cut spending and stoke the economic recovery. With vast crisis payments and sharply lower tax revenues making it difficult for the government to balance its books, Obama will set out an austerity plan that will help set the tone for next year's presidential race. It is expected to address widespread public anger that the government is living beyond its means, detailing sweeping spending cuts while including some investments. To square the circle, Obama's proposed budget for fiscal 2012 will seek to cut the record federal deficit, slashing energy subsidies for the poor and freeze public workers' pay. But faced with high unemployment and an economic recovery that is still struggling to escape the orbit of the 2008 economic crisis, Obama will also give states more flexibility to pay for unemployment benefits. Most of the projected savings would be achieved through two changes would require congressional approval. At 2,448 pages and a weight of 4.5kg, the budget will contain something for most members of congress, but plenty more that will be loathed. On the eve of of the budget's publication, Republicans have been promoting ever-deeper spending cuts and criticising Obama for not doing enough. Republicans argue spending cuts will help boost growth, while the B.O. regime argues cuts are needed, but should be carefully measured for fear of derailing the recovery. Posted by: Fred 2011-02-14 |
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| http://www.rantburg.com/poparticle.php?ID=316023 |