American President Barack Obama has submitted a draft federal budget for 2011 to Congress for approval.
Some people may wonder why such a hurry when 2010 has barely begun. But in the United States, the fiscal year does not coincide with the calendar year and runs from October 1 through September 30. Approving the budget, the country’s number one fiscal document, is a lengthy process that stirs heated debate. The 2011 budget bill will hardly be an exception. President Barack Obama, in a radio address to the nation a few days ago, outlined his economic priorities.
To downsize the colossal budget deficit that may hit $1.6 trillion this year, the new budget suggests cutting allocations for many federal projects, except social programs. At the same time, defense expenditures have been pushed even higher to $708 billion. Despite America’s financial constraints, the overall budget totals a record of $3.8 trillion. Not all agree with such plans. For example, Senator Evan Bayh has told CNN that its time for the government to tighten its belt.
President Obama also vowed to reduce the huge public debt of more than $12 trillion. Yet, just days before the draft 2011 budget was delivered to Congress, he had succeeded in persuading the Senate to push the upper ceiling for the public debt up by almost $2 trillion.
Last year, the U.S. government spent $790 billion on a bail-out package to steer the economy out of the crisis. The latest opinion polls indicate, however, that three-quarters of Americans believe the money has actually been wasted. It remains to be seen how Congress and ordinary Americans will react to President Obama’s new budget proposals.
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