Wednesday, May 6, 2009

Obama Trims 2010 Budget?

President Barack Obama is on the view to trim down 2010 budget by $17 billion from a 2010 budget that will still hover around $3.5 trillion. President Obama speaks during his 100-day anniversary news conference in the East Room of the White House. About half of the proposed cuts would come from the defense budget, and a total of 121 programs in areas including education would be trimmed or scrapped, one official told a conference call with reporters.

Even with the spending reductions, the White House's own estimates suggest the deficit will be $1.17 trillion next year. Congressional analysts believe the gap could be $1.4 trillion.Obama officials said the administration would look for further cuts in the 2010 fiscal year, which starts on October 1.This is an important first step but it's not the end of the process.Obama, who has vowed to cut the country's ballooning deficit in half by 2013, was widely panned last month when he challenged agencies to find $100 million in savings. Critics pointed out that was about equal to what the government spends in 13 minutes.

Congress has already passed a $3.4 trillion budget blueprint that will guide tax policy and government spending for the upcoming fiscal year. It embraces many of Obama's top priorities.
But the budget details the White House will release on Thursday, which build on a bare-bones outline the new president submitted to Congress on February 26, could have an impact on those individual spending bills that will wind their way through Congress in coming months.

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