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Published:February 24th, 2009 16:22 EST
Obama Vows to Trim Deficit in Half By 2012

Obama Vows to Trim Deficit in Half By 2012

By Christopher HIllenbrand

President Barack Obama swore to slash the U.S.`s budget deficit 50 percent by the finish of his first term in office. On Monday, the President debriefed the gist of his overhauled fiscal policy at a White House conference. During his discussion, he mentioned that the time to be frank about the budget crisis has come upon us. He also said that the deficit, predicted to meet 1.3 trillion dollars by year`s end, must be handled appropriately to prevent it from going out of control any further. In regards to the country`s future, Obama solemnly announced that the country cannot and will not sustain deficits like this without end."

 

In accordance with the plan he sketched earlier, Obama affirmed 3 proposals for his new deficit-cutting project. He wishes to institute a pay-as-you-go policy on federal funded programs to cut down wasteful spending, do away with programs that don`t work, and stop giving tax breaks to companies shipping jobs abroad.

 

Financial experts are scratching their heads at his ambitions considering the hole freshly dug by the bailout plan and the new divots not yet broken into the budget in the imminent future.

 

To supplant the lavish funds being redistributed into the economy as well those from the past, Obama called powerful friends, enemies, and analysts together for a budget summit at the White House on Monday. As a portion of the proceedings, Obama declared that 15 billion from the 787 billion dollar stimulus package is to be allocated to state-run Medicaid.

 

Vice President Joe Biden made the introductions to the occasion.

As we take the steps that we must to get through the crisis we`re in now, we will not lose sight of the long-term."

 

Biden repeated what Obama suggested that the administration will be blunt with Americans about budget difficulties. But he went on to say there is a dire need to remodel the country`s health care system, which is in shambles, and to gradually lessen our dependence on foreign oil.

 

Before Obama met with guests at the summit, he held a conference with Democratic and Republican state governors to discuss how the states are going to rewarded by his sumptuous bailout program. States, most desperate for money for health care, education, and other funding, will be infused with federal money to avoid denying their citizens of the aid they need.  

 

It`s only been a week since Obama signed into effect the 787 billion dollar economic stimulus package enacted to help combat the U.S. economy from plummeting farther into the cellar. His latest proposal is slated to add another 200 billion dollars to the projected deficit figure already in place. According to the administration`s estimates, the deficit by the end of 2009 will be 1.5 trillion dollars.