Obama seeks freeze on discretionary spending: official

US President Barack Obama will Wednesday unveil a plan for a three-year freeze on non-security optional government spending, taking aim at the huge deficit in a bid to save 250 billion dollars in 10 years, a senior official said.

US President Barack Obama, seen in Washington, DC January 25, will Wednesday unveil a plan for a three-year freeze on non-security optional government spending, taking aim at the huge deficit in a bid to save 250 billion dollars in 10 years, a senior official said.

The official said Obama will make the announcement in his crucial State of the Union address, one that is being seen as a chance to reorient his presidency amid a fierce political storm.

"We are proposing a hard freeze in non-security discretionary spending in 2011, and then continuing that freeze in 2012 and 2013," the official said on condition of anonymity.

The freeze will cap total discretionary spending in the budget not related to national security, though the money individual government departments will be permitted to spend can go up and down beneath that top line figure.

"The savings from the three-year freeze will amount to 250 billion dollars over the next decade, compared to the base line in which the base level of funding is just inflated out over time," the official said.

Source: AFP

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