Obama to make statement on budget talks

WASHINGTON: US President Barack Obama will make a statement at 2040 GMT Tuesday about difficult negotiations with Republicans to find a way to cut the nation's burgeoning budget deficit, the White House said.

"The president will deliver brief remarks to discuss the status of efforts to find a balanced approach to deficit reduction," it said in a statement.

Crucial high-level talks on raising the US borrowing limit collapsed last month when Republicans walked out, accusing the White House of provoking an impasse with demands to raise spending and taxes.

The move sparked fears that Congress will fail to raise the 14.29 trillion dollar debt ceiling by an August 2 deadline and cause the United States to default on its obligations, sending shockwaves through the global economy.

At the weekend, Obama expressed confidence that Republicans and Democrats would find a way to cut the nation's budget deficit, arguing that no program can be considered off limits in the process.

"I'm confident that the Democrats and Republicans in Congress can find a way to give some ground, make some hard choices, and put their shoulders to the wheel to get this done for the sake of our country," Obama said.

In his weekly radio address, he said the country's deficit can be cut while making investments in education, research and technology that create jobs.

"It means we will have to make tough decisions and scale back worthy programs," the president noted.

"And nothing can be off limits, including spending in the tax code, particularly the loopholes that benefit very few individuals and corporations."

Copyright AFP (Agence France-Presse), 2011