
The announced measures included the closure of shops by 8pm in a bid to reduce scheduled outages by 33 per cent. Full Story
WASHINGTON – President Barack Obama's proposed budget predicts the national deficit will crest at a record-breaking almost $1.6 trillion in the current fiscal year, then start to recede in 2011 to just below $1.3 trillion.
Still, the administration's new budget to be released Monday says deficits over the next decade will average 4.5 percent of the size of the economy, a level that economists say is dangerously high if not addressed.
A congressional official provided the information, which comes from a White House summary document circulating freely on Capitol Hill and among Washington's lobbyists. The official spoke on condition of anonymity because the spending proposal is not supposed to be made public until tomorrow.
Details of the administration's budget headed for Congress include an additional $100 billion to attack painfully high unemployment. The proposed $3.8 trillion budget would provide billions more to pull the country out of the Great Recession while increasing taxes on the wealthy and imposing a spending freeze on many government programs.
Administration projections show the deficit never dropping below $700 billion, even under assumptions that war costs will drop precipitously to just $50 billion in some years instead of more than three times that this year and next.
White House spokesman Robert Gibbs said the administration believed "somewhere in the $100 billion range" would be the appropriate amount for a new jobs measure made up of a business tax credit to encourage hiring, increased infrastructure spending and money from the government's bailout fund to get banks to increase loans to struggling small businesses.
That price tag would be below a $174 billion bill passed by the House in December but far higher than a measure that could come to the Senate floor this week.
Gibbs said it was important for Democrats and Republicans to put aside their differences to pass a bill that addresses jobs, the country's No. 1 concern. "I think that would be a powerful signal to send to the American people," Gibbs said in an appearance on CNN's "State of the Union."
Job creation was a key theme of the budget President Barack Obama was sending Congress on Monday, a document designed, as was the president's State of the Union address, to reframe his young presidency after a protracted battle over health care damaged his standing in public opinion polls and contributed to a series of Democratic election defeats.
Obama's $3.8 trillion spending plan for the 2011 budget year that begins Oct. 1 attempts to navigate between the opposing goals of pulling the country out of a deep recession and dealing with a budget deficit that soared to an all-time high of $1.42 trillion last year.
The startling budget numbers — deficits would total $8.5 trillion over the decade — are raising worries among voters and the foreign investors who buy much of the country's debt.
On the anti-recession front, congressional sources said Obama's new budget will propose extending the popular Making Work Pay middle-class tax breaks of $400 per individual and $800 per couple through 2011. They were due to expire after this year.
The budget will also propose $250 payments to Social Security recipients to bolster their finances in a year when they are not receiving the normal cost-of-living boost to their benefit checks because of low inflation. Obama will also seek a $25 billion increase in payments to help recession-battered states.
Obama's new budget will set off months of debate in the Democratically controlled Congress, especially in an election year in which Republicans are hoping to use attacks against government overspending to gain seats. Obama has argued that he inherited a deficit of more than $1 trillion and was forced to increase spending to stabilize the financial system and combat the worst recession since the 1930s.
Obama's new budget was expected to repeat many of the themes of his first budget. But in a bow to worries over the soaring deficits, the administration is proposing a three-year freeze on spending for a wide swath of domestic government agencies. Military, veterans, homeland security and big benefit programs such as Social Security and Medicare would not feel the pinch.
The freeze would affect $447 billion in spending and is designed to save $250 billion over a decade. However, it would not fall equally on all domestic agencies. Some would see budget cuts to free up spending for programs the administration wants to expand such as education and civilian research efforts.
NASA's mission to return astronauts to the moon would be grounded with the space agency instead getting an additional $5.9 billion over five years to encourage private companies to build, launch and operate their own spacecraft for the benefit of NASA and others. NASA would pay the private companies to carry U.S. astronauts.
Obama's budget repeats his recommendations for an overhaul of the nation's health care system, the fight that dominated his first year in office. It proposes to get billions of dollars in savings from the Medicare program and again seeks increased taxes on the wealthy by limiting the benefits they receive from various tax deductions. Both ideas have met strong resistance in Congress.
Gibbs insisted Sunday that the president's push for health care was "still inside the 5-yard line," but Senate Republican leader Mitch McConnell, also appearing on CNN, said the public was overwhelmingly against the bill and the administration should "put it on the shelf, go back and start over."
In addition to the freeze on discretionary nonsecurity spending, Obama is proposing to boost revenues by allowing the Bush administration tax cuts of 2001 and 2003 to expire at the end of this year for families making more than $250,000 annually. Tax relief for those less well-off would be extended.
The new Obama budget will also include a proposal to levy a fee on the country's biggest banks to raise an estimated $90 billion to recover losses from the government's $700 billion financial rescue fund. Those losses are expected to come not come from the bank bailouts but from the support extended to General Motors and Chrysler and insurance giant American International Group as well as help provided to homeowners struggling to avoid foreclosures.
Also on the deficit front, the president has endorsed a pay-as-you-go proposal that passed the Senate last week. It would require any new tax cuts or entitlement spending increases to be paid for, and he has promised to create a commission to recommend by year's end ways to trim the deficits. However, a legislatively mandated panel was rejected in a Senate vote last week. Republicans opposed establishing the panel because it might recommend tax increases to close the deficit.
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AP Science Writers Seth Borenstein and Alicia Chang contributed to this report.
Doctors had to use a private jet to rush three children from Haiti to the US for life-saving treatment yesterday after military evacuation flights were grounded by a bureaucratic dispute.
Medics had warned that the children could die, along with scores of other patients, after the US military stopped airlifting patients to Florida, claiming that hospitals were refusing them and that state authorities were arguing over who was responsible for the costs.
Hospital officials denied the allegations, while Charlie Crist, the Governor of Florida, said that he had merely appealed to the federal government to activate a disaster management plan as the state’s healthcare system was “quickly reaching saturation”.
Last night, as the White House promised better co-ordination and that the military airlift would resume within 12 hours, a five-year-old girl who is critically ill with a tetanus infection, a 14-month-old boy with pneumonia and a baby with third-degree burns were being treated at the Children’s Hospital of Philadelphia. “These are three children who would have died if they had stayed,” said Luis Ivers, clinical director for the charity Partners in Health, which organised the evacuation.
Hospitals in south Florida have taken in 526 earthquake victims since the disaster on January 12 and plans were in place to fly a further 30 to 50 into the state each day. Hospitals complained that they were often not receiving forewarning of the mass arrivals.
The US military halted flights on Wednesday, asserting that hospitals had been unwilling to take more — an allegation that the White House distanced itself from yesterday.
The confusion prompted an outcry from doctors, who still faced a race against time to save patients last night until the mercy flights resume today.
“We have 100 critically ill patients who will die in the next day or two if we don’t Medevac them,” said Barth Green, 64, a neurosurgeon running a tented field hospital in Port-au-Prince funded by the University of Miami and his own charity, Project Medishare.
Thousands of angry protesters marched in China’s only Muslim-majority region today to demand government action over a series of hit-and-run syringe attacks blamed on the ethnic Uighur group.
The unrest is certain to unsettle the authorities, coming just weeks after angry Uighurs rampaged through the streets of the city of Urumqi in riots that left 197 dead in the worst violence in China in 50 years.
The Government will be desperate to calm tempers and restore order as the leaders in Beijing are preparing for the Communist Party’s biggest party in a decade to celebrate 60 years of party rule.
One resident of Urumqi said he saw a group of ethnic Han Chinese beating up a man from the Turkic-speaking Muslim Uighur minority, accusing him of being among those suspected of stabbing passers-by with syringes.
A Han Chinese man told The Times: “Thousands of people, maybe tens of thousands gathered in People’s Square today to protest. We don’t believe the Government is doing enough to protect us from these syringe attacks.”
The crowd chanted: “Useless government, useless government” as they milled for hours in the city’s main square.
The boss of the Xinjiang region, Wang Lequan, the Communist Party secretary, made his way to the square and took up a megaphone to appeal to the crowds to disperse quietly. His appearance further inflamed the protesters.
“Wang Lequan resign, Wang Lequan resign,” they shouted. Then another roar erupted. “Wang Lequan is a bastard.” The party secretary swiftly withdrew from the square. The crowd did then begin to thin out.
The party secretary is a hardliner who has governed the region with a grip of iron for 14 years. Many Uighurs, now accounting for less than half the population in a region where they were once in an overwhelming majority, chafe under Chinese rule and a tiny minority even dream of independence from Beijing.
The depth of ethnic tension was underscored by the latest reports of bizarre syringe attacks reported on the streets of Urumqi. Officials say people of all ethnic groups have been hurt and 15 people have been detained for the stabbings. They have given no figure for the number of injured nor a breakdown of their ethnic background.
Several people have been treated in hospital but there have been no reports that anyone has been seriously hurt. The China Daily website said no one had been infected or poisoned by the syringe stabbings.
The Han Chinese resident told The Times: “People are pretty nervous to go out on the streets now. Parents make sure that they accompany their children to and from school to protect them from this kind of attack.”
He said the Government had been too slow to respond. That complaint echoed those that followed the riot that raged through Urumqi on July 5 when angry Uighurs beat, stoned, stabbed and set fire to Han Chinese, killing well over 150 people. Others who died are believed to have been Uighurs killed in revenge attacks or rioters shot by paramilitary armed police.
Hospitals declined to give any details of those injured in the bizarre syringe stabbings. An official at the regional People’s Hospital said: “This is a secret matter. Only the government is authorised to give information.”
However, witnesses said groups of relatives of some of the injured had gathered outside the hospital to wait for news of their loved ones. They were described as extremely agitated.
Zhao Jianzhuang, a Han resident, said he had joined a large crowd of protesters who were being blocked by riot police from marching on central People's Square, less than 1 mile (1.6 km) away.
He said anger was stoked by a perceived delay in trials for those arrested after the July riot, as well as by the recent spate of stabbings. “There are so many security forces deployed here, yet they're incapable of protecting us.” link...
NEW DELHI — A powerful politician considered an influential player in the ruling Congress Party was found dead on Thursday after his helicopter disappeared in bad weather in southern India.
The wreckage of the helicopter carrying Y.S. Rajasekhara Reddy, 60, the chief minister of the state of Andhra Pradesh, was discovered after a search following its disappearance Wednesday morning on a flight to the city of Chittor. Four other people also died.
“We are in deep mourning,” said India’s home minister, P. Chidambaram, as he announced the death in New Delhi. “We have a deep sense of shock, grief and loss at the passing away of a chief minister and a tall leader.”
The cause of crash was not known but the helicopter was found charred and broken into several pieces in a remote, hilly area. Initially, rescuers could not locate the crash site because of the rugged terrain and bad weather.
Dr. Reddy, a physician, was recently re-elected as chief minister of Andhra Pradesh. Dr. Reddy entered politics in 1978 and never lost an election. He also served four terms in Parliament.
Andhra Pradesh is infested with Maoist rebels and Dr. Reddy was credited with reducing the level of violence. There was no immediate indication that the helicopter had been attacked. link...ISLAMABAD — Authorities are holding six suspects in connection with an attack that wounded Pakistan's religious affairs minister and killed his driver, officials said Thursday. Members of his inner circle were among those being questioned.
The attack has raised concern about security in the capital and the ability of Pakistani police to protect top officials.
No group has taken responsibility for Wednesday's gun assault on Hamid Saeed Kazmi, but the minister is a vocal Taliban critic and the Islamist militants are suspected. Authorities have been on alert for revenge attacks following the Aug. 5 killing of Pakistani Taliban chief Baitullah Mehsud in a CIA missile strike.
Kazmi was shot in the leg and was in stable condition, officials said.
The driver of his Toyota Corolla was killed and a guard was wounded in the attack, police said. Authorities said two gunmen on a motorbike were involved in the shooting. They struck seconds after Kazmi's vehicle left his office, witnesses said.
Top officials scrambled Thursday to allay fears of insecurity in the capital.
Islamabad police Chief Kalim Imam said police were investigating leads and expressed optimism that the gunmen would be traced soon. He would not give details of the six suspects, who he said were already in custody.
"This is a crime, and we are going to resolve it very soon," he said.
Imam defended the Islamabad police's performance, saying they had arrested 46 alleged militants in the past three months, including some who wanted to "target key installations" in the city.
Pakistani authorities frequently claim to have rounded up terror suspects, but few are known to ever reach trial.
Interior Minister Rehman Malik said two pistols, a Kalashnikov rifle and a black bag were discovered near the scene of the attack. He suggested someone in the minister's office may have given away his movements, but provided no evidence of that claim.
"In such a targeted action, attackers use all their connections," Malik said, adding that those around Kazmi were being questioned.
Malik also said Pakistan's government is trying to get more bulletproof vehicles to transport top officials. link...
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