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Budget debate continues at national level

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President Barack Obama’s Democrats Monday offered to cut another $20 billion from the U.S. budget in an attempt to reach a deal with congressional Republicans that would avert a government shutdown, Reuters reported.

The latest White House plan would split the difference between a Republican plan that would cut $61 billion in the current fiscal year and the Democrats’ initial proposal to keep spending flat.

The money at stake represents a small portion of the $3.7 trillion federal budget.

The Democrats’ $20 billion offer comes on top of $10 billion in cuts that have already taken effect. Democrats are weighing cuts to benefit programs that usually lie beyond the reach of the annual budget process, which would ease the pain for discretionary programs such as education and housing. Republicans say the debate should focus on discretionary spending.

Congress will have to vote to raise the government’s borrowing authority before the current $14.3 trillion limit is reached. The U.S. Department of the Treasury estimates the United States will reach its debt limit between April 15 and May 31. Failure to reach a deal to fund the government for the rest of the year must be reached by April 8 to avoid a government shutdown.