–Democrats Say Report Shows Need For Balanced Deficit Reduction Plan
–Republicans Say OMB Report Shows Flaws in Admin’s Fiscal Policy
–Senate Budget Chief Conrad: Need ‘Comprehensive’ Deficit Cut Plan
–GOP Sen. Sessions: U.S. Is On ‘Dangerously Unsustainable Debt’ Path

By John Shaw

WASHINGTON (MNI) – Congress reacted in a partisan way Friday to the
White House’s mid-session economic and budget report, with Democrats
saying the report shows the need for a balanced, long-term deficit
reduction plan while Republicans argued that it underscores the failures
of President Obama’s fiscal policies.

The Office of Management and Budget’s mid-session report estimates
that the budget deficit for fiscal year 2012 will be $1.211 trillion —
$116 billion less than was projected in February.

Going forward, the OMB sees deficits of $911 billion in FY’13, $661
billion in FY’14, $595 billion in FY’15, $615 billion in FY’16, $576
billion in FY’17, $543 billion in FY’18, $578 billion in FY’19, $604
billion in FY’20, $627 billion in FY’21 and $652 billion in FY’22.

Acting White House budget director Jeff Zients said in a statement
that these estimates assume the “full enactment” of President Obama’s
fiscal policies.

Sen. Jeff Sessions, the ranking Republican on the Senate Budget
Committee, said the report shows the nation is on a “dangerously
unsustainable debt course.”

The U.S., Sessions argued, badly needs a “credible fiscal policy,”
but is not getting one from the administration. He said Obama’s
contention that he has a sound deficit reduction plan is “dramatically
false.”

Senate Budget Committee Chairman Kent Conrad said the OMB report’s
deficit outlook shows the need for a “comprehensive and balanced
long-term deficit reduction plan.”

“That can only happen if both sides agree to move off their fixed
positions. Republicans must yield on revenues and Democrats must agree
to entitlement changes. And it is important that the agreed upon plan be
phased-in carefully so that the changes don’t worsen the fragile
economic recovery,” Conrad said.

Rep. Chris Van Hollen, the ranking Democrat on the House Budget
Committee, said the report shows the urgent need to pass short-term
economic growth measures as well as a long-term deficit reduction plan.

House Majority Whip Steny Hoyer said the OMB report is “yet another
reminder” of the need for a deficit reduction package of about $4
trillion over a decade that includes both spending cuts and revenue
increases.

The Congressional Budget Office will release its mid-year review
next month.

** MNI Washington Bureau: (202) 371-2121 **

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