Obama vows to halve budget deficit by end of first term

President Barack Obama promised Monday to halve the ballooning US federal budget deficit by the end of his four-year term, despite having already authorized record spending on a package to jolt the economy out of a deepening recession.

Obama, who took office in January, inherited a 2008 budget deficit of 1.3 trillion dollars. That figure could top 2 trillion dollars - more than 10 per cent of US gross domestic product - in 2009 as his administration works to halt a disastrous economic slide.

While such record deficit spending was necessary in the "short- term," Obama said the world's largest economy "cannot and will not sustain deficits like these without end."

"I refuse to leave our children with a debt that they cannot repay," he said in a so-called Fiscal Responsibility Summit at the White House, which brought together politicians, economists and business leaders.

The new pledge comes after Obama last week signed unprecedented 787-billion-dollar economic stimulus legislation to help jump-start the flagging US economy. That followed a separate 700-billion-dollar financial bailout approved in October to shore up struggling US banks.

The massive spending spree has drawn the ire of many conservatives, who argue that Obama's administration is needlessly saddling future generations with unprecedented debts. Obama hopes to assuage some of their concerns this week with a series of events focusing on his longer-term efforts to cut government spending.

"I have no interest in making government bigger for the sake of it," Obama said after the fiscal summit, addressing his conservative critics.

He will unveil details of his 2010 budget and beyond in a traditional annual speech Tuesday night to a joint session of Congress and in a written outline to legislators Thursday.

The administration has promised to cut wasteful or ineffective government programmes and to roll back for the highest earners tax cuts that were enacted under former president George W Bush.

Fulfilling the new budget pledge will also require Obama to rein in spiralling health-care and pension costs, which are crucial to any long-term solution. Reforms of both have frustrated many past presidents trying to improve long-term government solvency.

The summit Monday brought together a bipartisan group of policy experts and politicians - including his 2008 presidential rival John McCain and other Republican lawmakers - to begin that conversation.

Obama urged states to spend the government's money wisely during a meeting with state governors earlier Monday at the White House. The president said he was relying on states to quickly implement the stimulus programmes to boost employment.

"We are addressing the greatest economic crisis we have seen in decades by investing unprecedented amounts of the American people's hard-earned money," Obama said. "And with that comes an unprecedented obligation to do so wisely, free from politics and personal agendas."

Vice President Joe Biden has been tasked with overseeing how the emergency money is spent, Obama said. The administration hopes the stimulus will save or create 3.5 million jobs over the next two years. More than 3.6 million jobs have been lost since the US went into recession in December 2007.

About 15 billion dollars from the 787-billion-dollar economic recovery package will be available to states as early as Wednesday to combat serious budget shortfalls in health care, Obama said. Hundreds of billions of dollars will begin flowing over the next several months.

Most of the country's 50 states have clamoured for federal aid to plug budget holes totalling about 350 billion dollars nationwide.

But some Republican governors have strongly opposed Obama's rescue package and are refusing to accept a portion of the money. They worry that a temporary extension of unemployment benefits, for example, could force them to increase taxes once the federal cash injection runs out.

Unlike the national government, US states are required by law to balance their budgets, forcing many to cut government benefits just as a deepening recession has increased demand for those services, reported dpa.

Subscribe to Trend in Google News! Subscribe
Pres. Raisi: Iran-Turkey cooperation to enter new phase
Pres. Raisi: Iran-Turkey cooperation to enter new phase
Raisi: Iran welcomes development of ties with UAE
Raisi: Iran welcomes development of ties with UAE
Iran stresses need for long-term cooperation with Kyrgyzstan
Iran stresses need for long-term cooperation with Kyrgyzstan
Loading Bars
First meeting of cooperation platform in 3+3 format to be held in Moscow
Azerbaijan plans to begin formation of legal framework for open banking in 2022 (PHOTO)
Kazakhstan’s oil and gas company opens tender for equipment repair
Azerbaijani, French ambassadors discuss results of Sochi meeting in Russia
U.S.-Israeli firm Tipalti raises $270 mln at more than $8 bln valuation
Uzbekistan shares domestic COVID-19 data for December 8
Georgia’s wine export volume reaches historical maximum
Iranian currency rates for Dec. 9
Armenian provocation near border results in death of Azerbaijani soldier
Iran reaches new record in daily gas transportation
Oil stays on the rebound as Omicron fears ease
Russia’s Astrakhan developing transportation of goods along North-South int’l transport corridor - governor
6.0-magnitude quake strikes Japan's Kagoshima Prefecture
Japan's COVID-19 cases defy Asia rebound, yet fears remain for winter wave
Steps being taken to build new bridge over Astarachay between Azerbaijan and Iran – ambassador
Kazakh economic growth accelerates to 3.8%
U.S. envoy to return to Vienna over weekend for Iran talks
UK, Canada join diplomatic boycott of Beijing Winter Games
Russia plans to deliver another batch of S-400 systems to Turkey - Kremlin spokesman
Burkina Faso president fires PM amid security crisis
Pres. Raisi: Iran-Turkey cooperation to enter new phase
Seven U.N. peacekeepers killed in central Mali explosion
Bayern Munich 3-0 Barcelona: Xavi's side crash out of Champions League
Erdogan praises new economy model, calls for trust in policies
Olaf Scholz elected new German chancellor
Georgian gov't allows Covid-19 booster five months after last shot
Turkey’s COVID-19 numbers decrease despite winter worries
Georgia shares data on most exported goods to Azerbaijan
Iran RIPI among 25 leading patent holders in oil, gas nanotech
Johnson imposes COVID-19 'Plan B' in England to contain Omicron
Azerbaijan-Iran to take steps to increase trade turnover – Iranian ambassador
Pfizer, BioNTech vaccine neutralises Omicron with three shots
Azerbaijan proposes new version of budget rule – minister
Azerbaijan working to prepare Budget Code
Iran is ready to start co-op with Azerbaijan, Russia in synchronization of power grids - minister
Azerbaijan appoints new president of Wrestling Federation
EIB, EBRD assess financing opportunities for Georgian business
Central Bank of Azerbaijan puts into circulation new 20 qepik coin
Turkmenistan launches production of Shir deri branded shoes
Uzbek Statistics Committee publishes leading regions in terms of food production
Georgia seeks funding for underground gas reservoir construction
Uzbek Commodity Exchange announces its weekly quotes of commodities for export
Tactical-Special Exercises held in Azerbaijani Nakhchivan (PHOTO/VIDEO)
Iran and Syria to launch a joint mercantile exchange
Central Bank of Azerbaijan to put into circulation new 20 manat banknote soon (PHOTO)
Iran discloses amount of money provided for purchase of agricultural machinery
Russia’s Astrakhan Business Center in Baku to attract businessmen, humanitarian reps - governor
Oil prices expected to strengthen again in 2023
Iran`s Khodro, Saipa automakers receive green light to raise prices on cars
Azerbaijan shares predictions on GDP growth rates for 2022-2026
Iran's Bahar Azadi gold coin prices dip
Indian Oil Corporation renews deal to buy up to 2 MT of oil from Russia's Rosneft
Azerbaijan boosts chemical exports for 10M2021
Foreign Secretary, Bangladesh Foreign Minister discuss COVID-19 cooperation
Number of passenger planes received by Iran’s Gorgan International Airport up
Baku State University opens tender for security services
Indian DRDO carries out successful test firing of surface-to-air missile
Turkey ready to mediate to reduce tension between Russia, Ukraine – President Erdogan
Kazakhstan shares forecast on oil production volume by 2030
Iran produces 5 million doses of domestic Noora COVID-19 vaccine
Bahrain parliament approves value-added tax increase to 10%
Challenge for OPEC+ beyond 2022 may shift towards managing upside risks
Israel budget deficit falls to 4.6% of GDP yr/yr in November
Gas withdrawal from European UGS 19% above average in December — Gazprom
India develops AESA radar to make IAF fighters more lethal
Iran`s National Development Fund voices readiness to back mega projects
Iran's trade with China declining
Iran seeks to boost trade with Syria through private sector
Pfizer, BioNTech vaccine neutralises Omicron with three shots
Red Cross to build regional logistics hub in Georgia
Kazakhstan reports increase in purchase prices for new housing
SOCAR Petroleum among largest taxpayers in Ukrainian fuel market
Azerbaijan launches construction of tunnels on Horadiz-Jabrayil-Zangilan-Aghband highway (PHOTO)
Azerbaijan, Iran hold discussions on development of co-op in oil-gas sector
Armenian troops shoot at Azerbaijani military positions in Kalbajar
Azerbaijan's activities in energy sector - commendable, says Iranian minister
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,210 more COVID-19 cases, 1,853 recoveries
US-led global release of strategic petroleum reserves may accelerate oversupply
Initial acquaintance with minefields maps provided by Armenia creates impression of inaccuracy – ANAMA
Main goal of Google Pay - to ease payment possibility for users, says head of operations strategy
Azerbaijan shares data on oil export to Switzerland for 10M2021
Azerbaijan discloses oil exports to Greece over 10M2021
bp says delivery of final major equipment packages for ACE complete
bp talks latest progress in ACE platform construction
Georgia shows positive growth in tourism revenue recovery – TBC Capital
Russia begins sea trials of 'Peter the Great' cruise ship - Astrakhan governor
Iran sees increase in volume of cargo loaded/unloaded in Genaveh port
Azericard looks to expand innovative payment tools in Azerbaijan
Uzbekistan reveals main countries in terms of imports for 10M2021
Several wheat varieties sown in Azerbaijan's liberated lands (PHOTO)
Central Bank of Azerbaijan plans to develop standards to support open banking technologies in 2022
Azerbaijan, Russia’s Astrakhan to co-op in dev’t of North-South transport corridor – Astrakhan governor
Central Bank of Azerbaijan unveils five main directions of digital payment development strategy
S&P Global Ratings announces Uzbek Ravnaq-bank's credit rating
China's Venus Medtech buys Israeli co Cardiovalve
Central Bank of Azerbaijan to develop document on conceptual approach to digital currency creation in 2022
Uzbekistan names leading countries in terms of exports in 10M2021
National Bank of Georgia reduces mortgage loans term
Iran reveals COVID-19 data for December 8
All news