Planning for the worst, the Office of Management and Budget is working on a plan as to how it would execute the sequestration.
Sequestration doesn’t threaten only national security. Critical infrastructure and domestic programs also face a budgetary “brick wall” early next year, according Jeff Zients, the acting head of the Office of Management and Budget.
The 2011 Budget Control Act is scheduled to trigger across-the-board cuts of nearly 8 percent off federal spending beginning January 2013 if lawmakers can’t agree on an alternative. The cuts will bring government outlays to their lowest levels since the Eisenhower administration, Zients wrote on Politico.com, emphasizing the upcoming budget sequester was intended to be a means to encourage responsible bipartisan deficit reduction, not to force “destructive” cuts to the federal government.
“The truth is no amount of planning or reports will turn the sequester into anything other than the devastating cut in defense and domestic investments that it was meant to be,” Zients wrote.
Analysts at Goldman Sachs have warned that the cuts due to take place on Jan. 2, 2013, will contribute to a “fiscal cliff” that will throw the weak U.S. economy back into recession.
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Source: Kedar Pavgi | Government Executive