5-yr spending freeze to reduce $400 bn deficit: Obama

US president Barack Obama has said a five year freeze on annual domestic spending will reduce the country’s deficit by more than $400 billion over the next decade.

“My budget freezes annual domestic spending for the next five years – even on programmes I care deeply about – which will reduce the deficit by more than $400 billion over the next decade,” Obama said.

He said this in his weekly address to the nation, in which he gave a preview of his budget next week.

“This freeze will bring this type of spending to its lowest level as a share of the economy since Dwight Eisenhower was president.

We’ve stripped down the budget by getting rid of waste,” he said.

“For example, we’re getting rid of thousands of government-owned buildings that sit empty because they aren’t needed,” he added.

“I’ve also proposed freezing salaries for hardworking government employees, because everyone has to do their part.

I’m going to make sure politics doesn’t add to our deficit, by vetoing any bill that contains earmarks,” Obama said.

“After a decade of rising deficits, this budget asks Washington to live within its means, while at the same time investing in our future.

It cuts what we can’t afford to pay for what we cannot do without.  That’s what families do in hard times.

And that’s what our country has to do too,” Obama added.