Posted by: mulrickillion | November 23, 2011

Defence Security Report – Budget cut supercommittee admits defeat

By Marina Malenic, Jane’s Aviation Reporter. Additional reporting by Nicholas de Larrinaga, Jane’s Industry Reporter — Jane’s Defence News, 11/23/2011 — A panel of lawmakers tasked with forging a compromise to find USD1.2 trillion in reductions to the US federal budget deficit announced on 21 November that an agreement had not been reached, leading to the feared triggering of ‘sequestration’.

The Budget Control Act, which President Barrack Obama signed into law in August, created the special congressional committee made up of six Democrats and six Republicans. This so-called ‘supercommittee’ was given a deadline of 23 November to devise a plan to reduce the deficit. However, with no agreement in sight panel co-chairs Senator Patty Murray and Representative Jeb Hensarling released a statement announcing defeat.

"After months of hard work and intense deliberations we have come to the conclusion that it will not be possible to make any bipartisan agreement available to the public before the committee’s deadline," the statement said.

The Budget Control Act included a trigger mechanism of automatic spending cuts, commonly referred to as ‘sequestration’, to begin in January 2013. Sequestration would see each section of the US federal budget automatically cut in proportion to its share of the overall budget. With defence spending accounting for around half of the US federal budget, about half of those cuts, some USD600 billion, would come from the US National Defense Budget (Function 050).

Under worst-case scenarios, the US defence budget could now be in line for a USD1 trillion hit as a result of sequestration, when combined with existing plans to cut USD450 billion from the defence budget over 10 years. . . .

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