15 Apr 2011

US lower house approves budget deal

8:41 am on 15 April 2011

The US House of Representatives has approved a budget deal struck last week by President Barack Obama and congressional leaders.

The deal, including $US38 billion in spending cuts for the current fiscal year, passed by 260 votes to 167.

About one-quarter of Republican representatives defected because the cuts were not deep enough, and more than half of Democrats rebelled against cuts they feared would hurt lower income Americans.

The budget deal goes to the Senate for final approval.

The vote was the first act in a growing political battle over spending and debt, with Mr Obama and Congress gearing up for new fights over the 2012 fiscal year budget and an increase in the $US14.3 trillion debt limit.