24 Feb 2009

Obama intends to cut US budget deficit by half

10:10 am on 24 February 2009

President Barack Obama has confirmed that he intends to cut the United States budget deficit by half by the end of his first term in office.

He said on Monday the US would face another economic crisis if it does not address its debt problems soon.

A $US787 billion economic stimulus package designed to jolt the country out of recession, was signed last week.

Mr Obama inherited a deficit of $US1.3 trillion when he took office on 20 January. He says interest payments in 2008 were $US250 billion.

Mr Obama says he's had to bring in extraordinary but necessary measures to deal with the economic emergency, which will add to the deficit in the short term.

His first term in office is due to end in 2013.

His first budget will be issued on Thursday.