WASHINGTON (MNI) - President Obama gave this week its fiscal year 2012 budget that includes savings of 1.1 trillion U.S. dollars in ten years with about two-thirds coming from cost savings and revenue increases by one third.
Obama sees FY12 budget deficit budget of 1.65 trillion U.S. dollars this year, FY11, and 1.1 trillion U.S. dollars in FY 12.
According to the administration's plan, the cumulative deficit between FY12 and FY16 will be $ 3,769,000,000, and the cumulative deficit on th FY12-21 period will be $ 7,205,000,000.
The president's plan to provide 1.1 trillion U.S. dollars in savings relies heavily on its proposal to freeze large amounts of discretionary budget for five years. That protects the $ 400 billion in savings.
According to the executive floor for FY12, spending will reach 3.7 trillion U.S. dollars while revenues to generate $ 2,627,000,000.
Senate Budget Committee Chairman Kent Conrad said the President's plan "you get about the right for the first year," but then falls short.
"We need a much more robust package of deficit reduction and debt in the medium and long term," Conrad said in a statement. He repeated his demands for a process of "bipartisan" to address the long-term deficit.
House Budget Committee Chairman Paul Ryan was more dismissive, blasting the plan as little more than a placeholder tactic designed to force Republicans to take the heat to provide a more aggressive tax.
In a sharp exchange with the White House budget hearing of Jack Lew of the FY12 budget Obama, Ryan said the new budget of the President "does nothing" to plans to reform the law more and more expensive.
"Why did you duck?" Ryan asked abruptly. "Why not taking this opportunity to drive?"
"We all know that the debt is becoming a crisis," he said.
Ryan also said that the administration uses very optimistic growth assumptions for the shortfall by mid-decade. "You expect very strong growth," said Lew skeptical.
Lew said the tax FY12 "puts the nation on a path of fiscal Sustainablity," but said the bipartisan negotiations will be needed to address the budget problems in the medium and long term.
"This is the first step in the budgeting process ... The president is the starting point," said Lew. "There are very, very difficult choices in this budget," he added.
Speaker of the House John Boehner said this week that the House GOP budget will include the reform of the law. "Our budget will result in which the president has failed, and will contain real reforms right so that we can have a conversation with the American people about the challenges we face and the need to chart a new path to prosperity" he said.
The president gave no details on what types of law reform in the GOP House will propose.
But Senate Minority Leader Mitch McConnell seemed more cautious in this week for the GOP taking the lead in pushing reforms of the law. "We know that and will say again that reform of the law will not be done except with on a bipartisan presidential leadership," said McConnell.
The Committee for a responsible federal budget, a budgetary assessment of Obama, concluded that "offers too little at a time when so much is needed." It added that "this budget is subtracted away from making tough choices and focuses instead on non-security discretionary spending."
The Concord Coalition budget Obama also insufficient. "While there are positive aspects of this budget, dealing with the nation's unsustainable structural deficit is not one of them, once again, the tax concession and reform program is left to another day."
