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US Senate passes budget scheme to eliminate deficit
The US Senate passed a budget plan on Friday to eliminate the federal deficit by 2012 while spending more than President George W. Bush wants on domestic programmes like schools and roads.
- Reuters
- Published: 00:10 March 15, 2008
Washington: The US Senate passed a budget plan on Friday to eliminate the federal deficit by 2012 while spending more than President George W. Bush wants on domestic programmes like schools and roads.
After a 15-hour debate that began on Thursday, the Senate voted 51-44 mostly along party lines to approve a nonbinding $3 trillion (Dh11 trillion) Democratic budget blueprint for the year beginning on October 1.
Before passing the measure, senators easily rejected a one-year ban on controversial spending projects, known as earmarks, that benefit specific cities or towns.
But they approved adding money for some international activities, including foreign aid, Iraq reconstruction, fighting Aids globally and nuclear nonproliferation.
On Thursday, the Democratic-led House of Representatives voted 212-207 for a similar version of the budget without any Republicans supporting the measure.
Much of the House debate centered on Republican charges the bill eventually would bring a record tax increase. Democrats countered it would protect middle-class tax cuts now in place that are set to expire at the end of 2010.
This week's votes are certain to be fodder for a spirited debate on government taxes and spending in the presidential and congressional campaigns leading up to the November election.
Presidential candidates
The three main presidential candidates - Democratic Sens Barack Obama of Illinois and Hillary Clinton of New York and Republican Sen John McCain of Arizona - interrupted their campaigns to cast votes.
The House and Senate will try to work out differences between their two budgets, both of which claim to end deficit spending by 2012. This year's budget deficit is forecast to hit about $400 billion.
"Our first priority is to strengthen the economy and create jobs," Senate Budget Committee Chairman Kent Conrad, a North Dakota Democrat, said, noting investments in energy, education, health care, road-building and other domestic programmes.
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