California Gov agrees on budgetory deal without Republican inputs

The governor of California Jerry Brown said that he is no longer pushing for bipartisan deal on budget saying that he is working with the Democrats lawmakers with interest only on spending plan. It was the democratic lawmakers that are agreeing with him on spending plan. The bipartisan deal on tax could not be reached.

The governor disclosed this while he was unveiling the state budget to the public on Monday. The governor had reached a deal with the democratic law makers to cutbacks in future if the expected income could be not being realized. The details on the programs that could be affected by such cut were not provided by the governor.

It is expected that the law makers would vote on the budget on Tuesday and the governor has already indicated that he will sign the budget as soon as the votes are conducted. He said that the state has made some tough decisions adding that state courts and state universities would be affected by the cuts.

The governor revealed that he talked with the law makers for some months adding that he could not get the support of the Republican law makers. The major areas of disagreement between the Republicans and the governor are mainly in the area of tax. The budget would become operational on Friday. The passage of the budget was tortuous as the governor once vetoed a package by the Democrat law makers which was the first in the history of the state.

Obama pledges to struggle with budget deficit

Obama pledges to struggle with budget deficit

The US Congress is geared up to deal with the economic crisis, however there is still a load of federal debt lagging behind and hampering all welfare programs.

David Plouffe, White House senior adviser stated in an interview that the US president plans to decrease the federal deficit and is formulating stategy for it.

However, there is a contrary concern among Americans over this as in order to reduce budget deficit, the US government may impose new taxes and other burdens over people.

Plouffe, who played a prominent role in the election campaign for Obama in 2008, further added that Obama would reveal his stand over how to deal with reduction in budget deficit. Plouffe stated this during a TV show. Plouffe said that the president believed that deficit reduction can help US economy to grow. However, by cutting student loans or funds for medical research works etc won’t do any good to the economy.

Obama’s main thrust would be on reducing tax cuts for the wealthiest Americans which goes in reverse to Bush era economic strategies.Plouffe stressed on that the US president did not refer to the middle class Americans to be included under this term.The government hopes to cover domestic and defense expenditure along the health care and federal deficit as well as the long-term debt of $14 trillion.

US President seeks for cooperation over budget talks

US President seeks for cooperation over budget talks

Barack Obama appeals to diplomats to cooperate over deductions in the $38 billion budget citing them painful.

He president asked opposition leaders to to cooperate with the ruling Democrats. He showed readiness to compromise more to save the country in economic and social crisis.

Obama sated this during a radion address appreciating all leaders for their cooperative attitude to reach the 11th hour budgetary agreement and speedy cuts in it in order to keep government open for remaining financial year. He acknowledged that this was largets ever deduction in the government spending in the United States. Obama further explained that the speedy cuts would hamper the infrastructure projects and many public welfare programs and he would never do such compromises had there been other alternatives.

The legislation is expected to go through legal procedure in the coming week following the overnight bridging by both houses of the Congress. The current fiscal year would end by Sept 30.

However, the speedy cuts too do not seem to be a permanent solution as there are more complicated issues like raising debt ceiling are lying ahead the next budget.

The president expressed hopes over collective efforts of Republicans and Democrats to grow American economy and create new jobs as well as reduce the huge long-term deficits.