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US Congress passes budget plan targeting deficit

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  7 May 2015 12:00 AM GMT

Washington, May 6: The US Congress has approved a Republican budget plan that includes big cuts to public spending intended to elimite budget deficits by 2024, and a provision to dismantle US President Barack Obama’s healthcare plan. The Sete approved the non-binding measure on Tuesday in a 51-48 vote after it was passed in the House of Representatives last week, the first time the Congress has passed a budget outline since 2009. The plan aims to pave the way to a balanced budget within a decade by reducing funding for tiol agencies and social security programmes such as food stamps, directed at families and individuals with low income and limited resources, and by ending tax breaks for low income earners. The plan reduces spending by $5.3 trillion over a 10-year period.

The outline does not need presidential approval to be ected, as it serves only to guide Congressiol consideration of government agency spending bills.

It will also serve as a Republican manifesto for the 2016 presidential elections. The resolution grants a short-term funding increase of $38 billion or 7 percent to the Pentagon, through funds earmarked for war operations. Republicans and some economists claim that balancing the budget is important for the long term health of the economy, and that it is better to tackle the fincial burdens of social security programmes sooner than later. This, they say, will also reduce the debt burden passed on to future generations.

Democrats, who voted against the budget outline in both houses of Congress, believe that Republicans would find it difficult to implement the cuts. (IANS)

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