Monday April 20, 10:14 PM
Obama calls for 100-million-dollar spending cuts
By Stephen Collinson
WASHINGTON (AFP) - In his debut cabinet meeting Monday, President Barack Obama commanded his government to cut 100 million dollars from the US federal budget within 90 days, with an eye on the ballooning deficit.
But Obama's Republican critics mocked his initiative as miniscule compared to a deficit tipped to hit at least 1.7 trillion dollars in the fiscal year 2009, renewing warnings his spending plans will bankrupt future US generations.
"One hundred million dollars there, a 100 million dollars here, pretty soon even in Washington it adds up to real money," Obama said, though agreed with a reporter's proposition that the initial target was a "drop in the bucket."
The president, flanked by Secretary of State Hillary Clinton and Secretary of Defense Robert Gates, said he was proud of his cabinet which took office at a time of rare national financial peril.
"We have had to take some extraordinary steps in order to shore up our financial system and deal with an unprecedented economic crisis and as a consequence we have had to spend a significant amount of money," Obama said.
"That was the right thing to do," he said, but argued that the cabinet had an obligation going forward to ensure every government dollar was spent wisely.
"I am asking for all of them to identify at least 100 million dollars in additional cuts to their administrative budgets," Obama said, calling for a total of 100 programs to be cut.
An administration official said that each agency would have to report their findings to the White House within 90 days.
The cabinet meeting came days after a string of "Tea Party" demonstrations across the United States, which saw Obama critics claim the administration was busting hopes of future prosperity with high taxation and ballooning deficits.
"The administration's new talk of trimming a meager .0025 percent from the 4 trillion dollar federal budget just doesn't square with its reckless record on borrowing and spending," John Boehner, the top Republican in the House of Representatives said Monday.
"Washington Democrats have spent the past three months doling out more taxpayer dollars than every previous president combined, and the administration is clearly feeling the heat."
Senate Republican minority leader Mitch McConnell warned the figure of 100 million dollars amounted to about the sum the United States was paying on daily interest payments on Obama's 787 billion dollar economic stimulus plan.
"It's important that we not lose sight of the enormity of our current spending and debt levels," he said.
But White House spokesman Robert Gibbs noted that over the eight years of the Bush administration, Republicans had turned budget surpluses into huge deficits.
"I'm being completely sincere that only in Washington, DC is 100 million (dollars) not a lot of money. It is where I'm from, it is where I grew up and I think it is for hundreds of millions of Americans."
Government data last week showed that the budget deficit raced to hit a record near one trillion dollars halfway through the current fiscal year, partly inflated by government bail outs of troubled financial institutions.
As part of its commitment go through the budget line-by-line to cull waste, the White House pointed to savings already made by government agencies, some involving better use of technology or trimming everyday office expenses.
The Department of Veterans Affairs has canceled or delayed 26 conferences, saving nearly 17.8 million dollars, the official said, adding that the agency will use more video conferencing facilities.
The Department of Homeland Security meanwhile is projecting budget cuts of 52 million dollars over five years just by buying office supplies in bulk, the official added.
The nonpartisan Congressional Budget Office (CBO) forecast last month the budget deficit could hit 1.845 trillion dollars for the whole year, based on Obama's 3.5-trillion-dollar budget plan approved by Congress.
The CBO said its budget deficit estimate for fiscal 2009, which ends on September 30, would be four times the 2008 record shortfall and amount to 13.1 percent of the country's total economic output.
The Obama budget forecasts a 1.750 trillion dollar deficit in fiscal 2009.
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