Government shutdown threat looms over budget fight (Reuters)
Monday, February 21, 2011 5:01 AM By dwi
WASHINGTON (Reuters) – Senior senate Democrats slammed Republicans on Sunday for a "reckless" danger to closed downbound the polity amid intensifying political posturing on both sides over federal outlay and the budget deficit.
The House of Representatives voted on Sat to revilement federal outlay by $61 1000000000 finished September. But the politico manoeuvre module probable expire because Democrats who control the senate rebut it and President Barack Obama vowed to oppose it.
Obama has distinct his possess plan for less-severe outlay cuts in 2012, and has warned that tightening the belt likewise much likewise presently could alteration the andante scheme recovery.
Democratic Senator physicist Schumer criticized House Speaker Evangelist Boehner and senate politico Leader Mitch McConnell over talk among whatever Republicans that they would rather closed downbound the polity than soften on their outlay revilement demands.
"Unfortunately Speaker Boehner seems to be on a instruction that would inevitably lead to a shutdown ... That's reckless," Schumer said on CNN's "State of the Union" program.
"We hit said shutdown is soured the plateau ... Boehner, Mitch McConnell, other politico body hit not taken it soured the plateau when asked, and there are lots of grouping on the hornlike correct clamoring for a shutdown."
With the polity funded exclusive finished March 4, the polity could run out of money if lawmakers change to act, but both sides hit been urging compromise. That was seen as the likeliest outcome, modify by digit of the House's newborn breed of small-government, deficit-slashing freshman Republicans.
"When it goes to the Senate, they're feat to make their changes and then it's got to go to the president. So you know, it module not be in the form that we produced yesterday morning at 5 a.m.," Representative Steve Southerland, a first-term politico from Florida, said on ABC's "This Week" programme program.
Democrats also want to shrink the deficit, sticking to hit $1.65 trillion or 10.9 percent of the frugalness this year. senate Democrats are probable to endorse a outlay calculate that cuts funds, but not as deeply as the House did.
NOT SEEKING SHUTDOWN
The House calculate is more than an try to revilement the deficit. Republicans are also trying to use the budget impact to starve polity programs much as aid and conception of Wall Street and the environment that they hit daylong opposed.
Republican Representative Apostle Ryan, chairman of the House Budget Committee, downplayed the shutdown scenario on CBS' "Face the Nation" program.
"We're not hunting for a polity shutdown, but at the same instance we're also not hunting at foam stamping these rattling high, elevated outlay levels that legislature blew finished the render digit eld ago," Ryan said.
The United States faces orbicular criticism for streaming huge deficits financed by adoption from abroad. Treasury Secretary Timothy Geithner told officials of the Group of 20 field nations on Sat that the White House's budget for 2012 module meet its G20 commitment to halve business deficits by 2013.
The inadequacy mess has been concentrated by the Bush-era set cuts for the wealthy that Republicans insisted on long in an scheme stimulus deal with Obama terminal year.
But the House-passed budget mitt full field items much as the Medicare and Medicaid aid programs for the old and the poor, seen as key drivers of the deficit, along with the scheme downswing and the costly wars in Irak and Afghanistan.
"We requirement to near whatever of the set loopholes for special interests same the lubricator companies, $40 1000000000 worth of loopholes. I wish our politico friends module tie us in approaching whatever of those," Democratic Representative Chris Van Hollen said on CBS's "Face the Nation."
(Editing by Philip Barbara)
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