–Repeats Call For Prompt Passage of Debt Hike
–Admin Wants ‘Multi-year’ Deficit Cut Plan
–Sen. Conrad: Need Bipartisan Budget Negotiation ‘Very Soon’

By John Shaw

WASHINGTON (MNI) – Treasury Secretary Tim Geithner Thursday
continued to dispute accusations that the administration’s fiscal year
2012 budget avoids tackling the nation’s most serious fiscal problems,
saying that President Barack Obama’s budget offers a credible first step
in a long process.

Geithner made it clear in testimony before the Senate Budget
Committee that he now thinks the ball is in the court of congressional
Republicans, especially the GOP majority in the House, to offer a
competing fiscal blueprint.

“What’s their alternative? … Let’s see the alternative,” Geithner
said in a response to a criticism that Obama’s budget fails to make
critical spending reforms.

“You’ll have the chance to do better,” Geithner said, referring to
congressional Republicans.

Budget law requires Congress to write a budget resolution by the
middle of April that outlines multi-year spending and revenue goals.
The Democratic majority in the last Congress did not pass a budget
resolution last year.

When accused of trying to force congressional Republicans to offer
a politically painful budget, Geithner said, “we’re not trying to put
the burden on you. The Constitution puts the burden on you.”

Geithner said the administration would carefully review any GOP
deficit cutting suggestions.

“If Congress finds a way to go deeper and further … we will join
you in that cause,” he said, but added the administration’s support will
depend on the quality of the deficit cutting ideas.

“The question is how do you do it,” he said, referring to cutting
the deficit.

Geithner said the current budget process “doesn’t work” and is not
producing good results.

He said that it is important to “lock in comprehensive multi-year
reductions” to reduce the budget deficit.

Geithner once again urged Congress to pass a debt limit increase
this spring “well in advance” of hitting the ceiling. He said it was
critical that markets “not lose any confidence” that the debt ceiling
will be increased in a timely way.

Senate Budget Committee Chairman Kent Conrad told Geithner that he
does not think the administration’s fiscal year 2012 budget is adequate
given the nation’s growing fiscal challenges.

“How do we get to the table to have a serious negotiation?” Conrad
asked Geithner who declined to give him a direct answer.

Conrad ended the hearing by saying that he hopes that “sometime
very soon” there is a bipartisan “summit” or “negotiation” for a
long-term deficit reduction plan.

** Market News International Washington Bureau: (202) 371-2121 **

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