Clinton Sees Balanced Budget This Year

President Bill Clinton has asked Congress to approve Nato enlargement, extend the US peacekeeping mission in Bosnia, pay the US debt to the United Nations and ratify the comprehensive test ban treaty.

In his annual State of the Union address to a joint session of Congress on Tuesday, Clinton warned against passage of untargeted tax cuts and said any new tax cuts or spending must not add to the deficit. The President also hinted at the possibility of achieving a balanced budget this year itself. We must not go back to unwise spending, or untargeted tax cuts, that risk reopening the deficit, Clinton said in a prepared copy of the address.

 

In a speech that made no mention of the alleged adulterous affairs in White House, Clinton appealed to the American people to support rescue deals for Asias ailing economies, saying it was the right thing to do for the United States and the world as a whole.

Foreign policy

The President said his foreign policy goals were peace and security and the enemies were extreme nationalism, terrorists, international criminals and drug traffickers, especially if they acquired weapons of mass destruction.

To meet these challenges, we are helping to write international rules of the road for the 21st century, protecting those who join the family of nations, isolating those who do not, he said in the advance text of his address to Congress and the nation.

Within days I will ask the Senate for its advice and consent to make Hungary, Poland and the Czech Republic the newest members of Nato, he said. I ask the Senate to say yes to them -- our new allies.

The Senate is widely expected to approve this first phase of Nato expansion, after the Clinton administration gave assurances that it will not cost too much and that the United States will not be taking on too great a security burden.

On Bosnia, where the United States has about 7,900 troops in the 30,000-strong peacekeeping force, the President said: I will ask Congress to continue its support for our troops and their mission.

To take firm root, Bosnias fragile peace still needs the support of American and allied troops when the current Nato mission ends inJune, he added.

The Bosnian mission is less popular than Nato expansion, but the missions success and the lack of combat casualties strengthen Clintons hand in arguing the case for it.

This is like being in the fourth quarter of a football game. Now is not the time to walk off the field and forfeit the victory, Clinton said, quoting former Republican presidential candidate Bob Dole, who travelled to Bosnia with him last Christmas.

More than 140 countries signed the comprehensive treaty banning nuclear tests at the United Nations in September 1996 but by late last year only four legislatures had ratified it.

Sen. Jesse Helms of North Carolina, the Republican chairman of the Senate foreign relations committee, told Clinton last week he would stall action on ratifying the treaty until the White House submits an even more contentious bill on global warming.

US economy

Clinton called for an unspecified increase in the minimum wage from the current $5.15 per hour. He forecast the fiscal 1998 US budget deficit at only $10 billion. And if we hold fast to fiscal discipline, we may balance the budget this year -- four years ahead of schedule, Clinton said.

Earlier this month, Clinton said that the 1998 deficit would be smaller than last years $22 billion, and the Congressional Budget Office has forecast a deficit of $5 billion in 1998.

Clinton said his proposed balanced budget for fiscal 1999, to be delivered next month, would include new investments and tax cuts targeted for education, child care and the environment.

But whether the issue is tax cuts or spending, I ask all of you to meet this test: approve only those priorities that can actually be accomplished without adding a dime to the deficit, he said.

Social security

Clinton proposed to reserve future budget surpluses to bolster the US social security system which is expected to come under financial stress from retiring baby-boomers.

Tonight, I propose that we reserve 100 per cent of the surplus -- thats every penny of every surplus -- until we have taken all the measures necessary to strengthen the social security system for the 21st century, he said.

Many economists expect the federal government to achieve a budget surplus this year and for several years thereafter because of the booming economy bringing in more tax receipts.

See Edit: A sidestep and a tackle: Page 7

But the Federal Reserve as well as other policymakers have warned that surpluses will soon evaporate into huge deficits as the post-World War Two baby-boomers start retiring with longer life expectancies than originally expected.

If we balance the budget for next year, it is projected that we will have a sizable surplus in the years immediately afterward, Clinton told Congress.

What should we do with this projected surplus?" he asked. I have a simple four word answer: save social security first.

Clinton said he wanted to develop true consensus on how to proceed on social security.

He said he would start by conducting regional forums on Social Security, which he hoped would draw the participation of both Democrats and Republicans.

Clinton said he would host a White House conference and vowed that in one year he would convene leaders of Congress to draft bipartisan legislation to strengthen the Social Security system.

India: partner of peace

President Bill Clinton has listed India and Pakistan among Americas partners in peace and security.

In his annual State of the Union address Clinton said, in the months ahead, I will pursue our security strategy with old allies in Asia and Europe and new partners from Africa to India and Pakistan...Amercica will continue to stand with those who stand for peace.

The U.S has in the past characterised Pakistan as an old ally but referred to India at best as the worlds largest democracy.

The word partnership, recently used by Clinton with reference to China, was widened last night to include India and Pakistan.

The reference of India and Pakistan as partners was immediately welcomed by Democratic Congressman Frank Pallone, founder and co-chairman of the Congressional caucus on India and Indian Americans.

In a statement, he said the reference was an indication of increased focus on the region in the clinton administration.

"In past years, when presidents have outlined their key foreign policy objectives, south asia has rarely figured in the discussion. So i am glad that the president addressed the region in his speech," pallone said.