The U.S. Senate on Wednesday narrowly passed a budget for the fiscal year beginning October 1 that would eliminate deficits by 2012 but does not address difficult decisions on taxes and controlling the growing costs of health and retirement benefits for the elderly. Over Republican objections, the Democratic-led Senate voted 48 to 45 for the non-binding $3 trillion fiscal 2009 budget that outlines government spending priorities for the next several years. The House of Representatives also was expected to pass the compromise measure this week. If so, it would be the first time since 2000 that Congress approved a budget plan in an election year. Senate Budget Committee Chairman Kent Conrad (Democrat from North Dakota) said the budget “will strengthen the economy and create jobs. … It will provide tax cuts for the middle class, and it will restore fiscal responsibility by balancing the books by 2012 and maintaining balance in 2013.” In addition to setting broad goals for federal spending and taxes, the budget plan also allows the government to borrow more money to service its debt. Under the budget plan, Washington's borrowing limit would rise to $10.615 trillion from the current limit of $9.815 trillion.
