White House agrees to slash budget

The US administration agreed to compromise with Congress and adopted a strict plan to slash budget spending to tackle the national debt, RIA Novosti reports.

By the end of 2011 financial year the budget deficit of the USA, according to the forecasts, will be up to $1.5 trillion. On May 16 the US surpasses the national debt ceiling, adopted by the Congress last year, of $14.3 trillion. If the Congress doesn’t vote for advancing the ceiling of the national debt, the country will face default after the August 2nd.

On Tuesday President Obama stated that the administration is ready to compromise with the Congress, which demands to reduce spending on public healthcare reform, the system of social insurance and Medicaid and Medicare programmes.