US: President Bush is proposing to reduce spending on public health and social welfare in the US to help pay for tax cuts for the wealthy and the war in Iraq, according to early reports of today's White House budget.
In an attempt to keep government spending under control at a time of record deficits, Mr Bush's proposals to Congress will include cuts in public housing subsidies, in health projects aimed at diseases related to poverty, and in food stamps, which help America's poorest buy groceries.
Mr Bush inherited a budget surplus from Bill Clinton but is now running deficits of over $400 billion a year, partly as a result of an economic slump and the September 11th attacks. But the turnaround is also due to huge tax cuts which disproportionately benefit the wealthiest 1 per cent of Americans, and the war in Iraq, for which the administration has asked for another $80 billion this year.
Some state governments provide food stamps not only to families on welfare but also to those receiving job-related aid such as for childcare. The new budget would restrict that practice, the Los Angeles Times reported yesterday.
A programme that helps the poor pay heating bills is to be cut by more than 8 per cent, while 18 housing and community programmes will be consolidated with total savings of about 40 per cent - almost $3 billion. The administration has also said it will save $60 billion over 10 years on the Medicaid programme, which provides health services to the poor. It argues that the savings will largely come from administrative costs, but there will be severe cuts in several health programmes. - (Guardian service)