Obama formally orders broad cuts in govt. spending

PanARMENIAN.Net - President Barack Obama formally ordered broad cuts in government spending on Friday, March 1 night after he and congressional Republicans failed to reach a deal to avert automatic reductions that could dampen economic growth and curb military readiness, Reuters reported.

As the United States staggered into another fiscal crisis, the White House predicted that the spending cuts triggered by the inability of Obama and lawmakers to forge a broader deficit-reduction agreement would be "deeply destructive" to the nation's economic and national security.

"Not everyone will feel the pain of these cuts right away. The pain though will be real. Beginning this week, many middle-class families will have their lives disrupted in significant ways," Obama told journalists after his meeting with Republican and Democratic congressional leaders.

Late on Friday, Obama signed an order that put in effect the across-the-board government spending cuts known as "sequestration." Government agencies will now begin to hack a total of $85 billion from their budgets between Saturday and October 1.

Half of the cuts will fall on the Pentagon. Defense Secretary Chuck Hagel said the reductions put at risk “all of our missions”.

Congress and Obama could still halt the cuts in the weeks to come, but neither side has expressed any confidence they will do so. Both Democrats and Republicans set the automatic cuts in motion during feverish deficit-reduction efforts in August 2011.