The US budget cuts have reached $85 billion. Two bills, one offering smaller budget cuts and the other setting higher tax rates to compensate the cuts, were scrapped. US President Barack Obama will sign a decree on emergency regime of government this evening, ITAR-TASS reports.
The US administration and the IMF expect the budget problem to have a bad impact on global economy. Reduction of finances at departments and business enterprises will cause unemployment and weaken global economy.
The US government has developed extreme measures in case of budget cuts. They include reduction of most federal programs and partial scrapping of work at state agencies. The sequester threat was developed by the White House and Congress in 2011 to stimulate control over national finances.
