US president Barack Obama is willing to make difficult choices on spending cuts when he unveils his budget next month, a senior aide said yesterday. But White House economist Austan Goolsbee said it was important not to “skimp” on key investments like education.
“We are going to have to make, in the medium run, a series of tough choices, and the president’s not afraid to do that, and I think you will see in his budget that he’s willing to,” said Mr Goolsbee.
A fight is looming as Mr Obama prepares to unveil his budget proposal in mid-February. Republicans, who won control of the House of Representatives in November elections, want to roll back federal spending to 2008 levels, with exceptions for the elderly, US troops and veterans.
In separate television appearances Republicans said they would to use a debate on raising the nation’s statutory debt limit to pressure the Obama administration to reduce spending. A vote on the debt limit is expected within the next few months.