Reuters: Obama budget to get serious with deficit

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The budget deficit now represents 9.8 percent of the U.S. economy, or a towering $1.48 trillion for the current fiscal year, according to the latest estimate by the nonpartisan Congressional Budget Office.

“The [President’s budget proposal] will show a very serious path of deficit reduction,” [White House Office of Management and Budget Director Jack] Lew said in an interview.

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Obama is under pressure to make deep cuts in government spending from Republicans, who have greater strength in the Senate and control of the House of Representatives after winning big in November elections following a campaign built largely around fiscal austerity.

Obama announced last week he would propose a five-year freeze in non-security discretionary spending in his new budget that will lower the deficit by $400 billion over 10 years.

The president’s deficit commission, which delivered its report in December, sought much more dramatic reductions in spending as well as a shakeup in the Social Security retirement program and a tax code overhaul.

“There definitely will be items that are familiar from the deficit commission” in the budget…. There’s not going to be a question of not putting a budget out there with tough choices and tough cuts,” Lew said.

We say, it’s about time. Stay tuned!