WASHINGTON (MNI) – The following text is a statement released by
the Office of Management and Budget Wednesday laying out the
administration’s opposition to the House Republican plan to complete the
fiscal year 2011 budget that the Senate will vote on this afternoon:

The Administration strongly opposes Senate passage of H.R. 1,
making appropriations for the Department of Defense and the other
departments and agencies of the Government for the fiscal year ending
September 30, 2011, and for other purposes. As stated previously, the
Administration is committed to cutting spending and reducing the deficit
so that current Government spending does not add to the debt, and has
put forward a plan to do just that.

However, the Administration does not support deep cuts that will
undermine our ability to out-educate, out-build, and out-innovate the
rest of the world. The unbalanced bill would undermine the Nation’s
economic recovery and its ability to succeed in a complex global
environment.

If the President is presented with a bill that undermines critical
priorities or national security through funding levels or restrictions,
contains earmarks, or curtails the drivers of long-term economic growth
and job creation while continuing to burden future generations with
deficits, the President will veto the bill.

The Administration strongly supports Senate passage of the Inouye
substitute amendment 149, which responds to the Administration’s call to
meet the House half-way in achieving the $102 billion in reductions that
advocates for H.R. 1 have proposed. The amendment is a fair compromise
and, unlike H.R. 1, does not undermine the Nation’s economic recovery
and long-term growth.

The Administration will continue to work with the Congress to
reduce spending and do so in a manner that reflects sound economic
policy, protects key investments, and allows critical Government
functions to operate without interruption for the remainder of the
fiscal year underway.

** Market News International Washington Bureau: 202-371-2121 **

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