President Barack Obama has reluctantly ordered an US$85 billion austerity drive that could slow the US economy and slash jobs, after blaming Republicans for refusing to stop the "dumb" spending cuts.
Obama complied with his legal obligations and initiated the automatic, across-the-board cuts in domestic and defense spending Friday, following the failure of efforts to clinch a deal with Republicans on cutting the deficit.
The president signed an order bringing the arbitrary cuts into force, saying they should be made in "strict accordance" to US law, and a report by his Office of Management and Budget (OMB) detailing the cuts to each agency.
The measures could mean long lines at US border posts, reduced military readiness, cuts to special needs education programs, and will trim the resources of some emergency services, according to White House officials.
Obama had earlier blamed the austerity time bomb on Republicans, who refused to close tax loopholes for the rich and corporations combined with more targeted spending cuts, in his "balanced" approach to deficit reduction.
"I am not a dictator. I'm the president," Obama said, warning he could not force his Republican foes to "do the right thing," or make the Secret Service barricade Republicans leaders in a room until a deal is done.
"These cuts will hurt our economy, will cost us jobs and to set it right both sides need to be able to compromise," Obama said, before decrying the budget trimming as "dumb" and "unnecessary."
Only three months after winning re-election, and with the extent of his authority in Washington again constrained, Obama bemoaned his inability to do a "Jedi mind-meld" to get Republicans to change their minds, using imagery from Star Wars and Star Trek.
Obama was bound by law to initiate the automatic, indiscriminate cuts, which could wound the already fragile economy, cost a million jobs and harm military readiness, by the end of Friday.
The hit to military and domestic spending, known as the sequester, was never supposed to happen, but was rather a device seen as so punishing that rival lawmakers would be forced to find a better compromise to cut the deficit.
Both sides agree that the sequester is a blunt instrument to cut spending, as it does not distinguish between essential and wasteful programs -- in what Obama has branded a "meat-cleaver" approach.
New Defense Secretary Chuck Hagel warned that the sequester could endanger the military's capacity to conduct its missions.
"Let me make it clear that this uncertainty puts at risk our ability to effectively all of our missions," said Hagel. The Pentagon's budget is set to be slashed by roughly $46 billion.
The president appeared irritated but combative as he spoke to reporters after meeting with his chief foes -- House Speaker John Boehner and Senate Republican Minority Leader Mitch McConnell -- and allies Democratic Senate Majority Leader Harry Reid and top House Democrat Nancy Pelosi in the Oval Office.
Boehner emerged from the talks to signal to reporters that Republicans would not budge on Obama's key demand for a deal that would raise tax revenues.
"Let's make it clear that the president got his tax hikes on January 1. This discussion about revenue in my view is over," Boehner said.
"It is about taking on the spending problem in Washington."
Even Obama's defeated election rival Mitt Romney got in on the action, slamming the president in a rare interview, complaining he was "blaming and pointing" at Republicans and not leading the country.
In the report to government agencies, the OMB said non-exempt defense programs would be cut by 13 percent this year and domestic programs would be sliced by nine percent.
In cash terms, reductions for the military amount to just over $42 billion, with a similar sum coming from non-defense related spending.
OMB Director Jeffrey Zients told Boehner in a letter accompanying the report that the cuts would be "deeply destructive to national security, domestic investments, and core government functions."
The political stalemate is likely to be prolonged, as the president's tactics are based on a strategy of pinning blame on Republicans for the pain of the sequester, which may take weeks to become evident.
The next point of leverage is likely a bill to fund government operations, which Congress must pass by March 27, or see the government shut down.
Both sides indicated that they would seek to avoid that scenario, meaning that the sequester cuts may remain in place -- unless a way can be found to make equal spending reductions that are less punitive.
Although the cuts trim domestic and defense spending, they do not touch entitlements -- social programs like Medicare health care for the elderly and pension schemes.
Many budget experts say that only cuts to those programs will be able to restore the prospect of long-term fiscal stability.
AFP
Sat Mar 02 2013
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.