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| Version 0 | Version 1 |
|---|---|
| Obama set to unveil budget plans | Obama set to unveil budget plans |
| (10 minutes later) | |
| President Barack Obama's budget is set to projects a 2009 deficit of $1.75 trillion dollars, up from $455bn a year earlier, US reports suggest. | |
| This would amount to 12.3% of GDP, the highest percentage since World War II. | This would amount to 12.3% of GDP, the highest percentage since World War II. |
| The plans should also give greater insight into how he aims to halve the US deficit by 2013. | |
| The president will also reveal further details of how he aims to boost the ailing US economy when he unveils his budget blueprint later. | |
| Reports say that the budget blueprint will also include the possibility of spending $250bn more on fixing the troubled US financial system, on top of the $700bn bail-out programme that Congress has already authorised. | Reports say that the budget blueprint will also include the possibility of spending $250bn more on fixing the troubled US financial system, on top of the $700bn bail-out programme that Congress has already authorised. |
| Mr Obama is also expected to ask Congress to raise taxes on the wealthiest Americans. | Mr Obama is also expected to ask Congress to raise taxes on the wealthiest Americans. |
| The complete details of the budget are set to be released in April. | The complete details of the budget are set to be released in April. |
| Slowdown | Slowdown |
| Mr Obama has vowed to make the budget as transparent as possible, a move which could make the full extent of the US credit crisis clear. | Mr Obama has vowed to make the budget as transparent as possible, a move which could make the full extent of the US credit crisis clear. |
| It comes a week after a $787bn (£540bn) plan to boost the economy was made law. | It comes a week after a $787bn (£540bn) plan to boost the economy was made law. |
| The US is currently facing its sharpest slowdown since World War II, industrial output has sunk and housing starts have plunged, while millions of jobs have been lost. | The US is currently facing its sharpest slowdown since World War II, industrial output has sunk and housing starts have plunged, while millions of jobs have been lost. |
| Meanwhile, the credit crisis has prompted the government to offer multi-billion-dollar bail-outs to Wall Street and the car industry. | Meanwhile, the credit crisis has prompted the government to offer multi-billion-dollar bail-outs to Wall Street and the car industry. |
| Transparency | Transparency |
| During his budget speech, Mr Obama is widely expected to outline his plans to expand healthcare coverage - an issue he says is the "single most pressing long-term fiscal challenge we are facing, by far". | During his budget speech, Mr Obama is widely expected to outline his plans to expand healthcare coverage - an issue he says is the "single most pressing long-term fiscal challenge we are facing, by far". |
| By 2018, more than 51% - or a total of $2.2 trillion - of all US healthcare spending will be done by federal, state and local government, according to the latest estimates from Centers for Medicare and Medicaid Services. | By 2018, more than 51% - or a total of $2.2 trillion - of all US healthcare spending will be done by federal, state and local government, according to the latest estimates from Centers for Medicare and Medicaid Services. |
| Last year, the government accounted for an estimated 46.6% of healthcare funding. | Last year, the government accounted for an estimated 46.6% of healthcare funding. |
| His announcement should also set out further details of the $787bn American Recovery Plan, which aims to create jobs, boost consumer spending and rebuild infrastructure. | His announcement should also set out further details of the $787bn American Recovery Plan, which aims to create jobs, boost consumer spending and rebuild infrastructure. |
| Cutbacks | Cutbacks |
| But as well as setting out spending plans for the US, Mr Obama is also expected to reveal how he will cut spending in order to bring the spiralling US deficit under control. | But as well as setting out spending plans for the US, Mr Obama is also expected to reveal how he will cut spending in order to bring the spiralling US deficit under control. |
| He insists it can be cut by less military spending, higher taxes on businesses and the wealthy after 2010, and by reining in spending on government-run health programmes for the elderly and poor. | He insists it can be cut by less military spending, higher taxes on businesses and the wealthy after 2010, and by reining in spending on government-run health programmes for the elderly and poor. |
| However, critics have said that despite President Obama's vow to slash the US deficit to $533bn by 2013, his plans to shake up healthcare and education and revitalise the economy will mean a rise in spending in the short term. | However, critics have said that despite President Obama's vow to slash the US deficit to $533bn by 2013, his plans to shake up healthcare and education and revitalise the economy will mean a rise in spending in the short term. |
| Meanwhile, Republicans have already attacked the president's economic stimulus package, warning it will saddle states with obligations they cannot afford. | Meanwhile, Republicans have already attacked the president's economic stimulus package, warning it will saddle states with obligations they cannot afford. |
| Louisiana's Republican Governor Bobby Jindal has said he will reject $100m in unemployment assistance offered by the plan, as it would force the state to raise business taxes to pay for the extra aid once the federal dollars run out. | Louisiana's Republican Governor Bobby Jindal has said he will reject $100m in unemployment assistance offered by the plan, as it would force the state to raise business taxes to pay for the extra aid once the federal dollars run out. |
| "It requires us to make a permanent change in our law. It's like spending a dollar to get a dime," he said earlier this week. | "It requires us to make a permanent change in our law. It's like spending a dollar to get a dime," he said earlier this week. |