US House passes $3.4tr budget plan

WASHINGTON - The US House of Representatives on Wednesday passed a $3.4 trillion budget plan that endorses much of President Barack Obamas agenda, including health care reform. The plan was approved by a 233-193 vote but no Republicans voted for it. The House budget predicts that the federal budget deficit will rise $1.7 trillion in the ongoing fiscal year, which ends on Sept 30, 2009, and then dip to $1.2 trillion in the 2010 fiscal year starting Oct 1. The projected deficits would be much larger than the previous record of 454.8 billion dollars set in fiscal year 2008. The huge deficits reflect the soaring costs of the governments economic stimulus package and financial rescue programme and the recession that has resulted in a sharp decline in tax revenue. The recession, which started in December 2007, also has boosted government spending for benefit programmes such as unemployment insurance and food stamps. In February, Obama submitted to Congress a 3.6 trillion dollar budget, which he later described as an economic blueprint for our future - a foundation on which to build a recovery that lasts. The budget for the 2010 fiscal year, Obamas first one, seeks to shore up the worlds largest economy while also overhauling health care, energy and education. According to news reports, the House budget skirts difficult decisions on how to pay for Obamas health care plan, which is expected to cost more than one trillion dollars over the next decade. The Senate is expected to vote on the plan soon, it was reported.

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