Budget in US agreed

THE bitter dispute between the White House and the Republican led House of Representatives over the US budget ended yesterday…

THE bitter dispute between the White House and the Republican led House of Representatives over the US budget ended yesterday when a compromise spending plan was approved.

The House approved the $160 billion (6102.5 billion) plan by a vote of 399-25, ensuring that all departments of the federal government would operate without the threat of a shutdown for the first time in seven months.

The agreement ended the most protracted budget battle in US history, which left many agencies without assured funding seven months into the fiscal year.

It restored about $4.8 billion in funds that President Clinton wanted for job training, education, environmental protection and for an additional 100,000 police on the street. The increases were fully paid for by cuts in other areas to keep the plan on track toward a balanced budget.

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The budget legislation now goes to the Senate, which was expected to pass the legislation. President Bill Clinton has said he would sign it.

"This marks the end of a dark period," said Representative Mr David Obey, a senior Democrat on the House Appropriations Committee.

House Speaker, Mr Newt Gingrich, called the compromise plan, which provides $23 billion less in discretionary spending from last year, a "great achievement".

"It's not everything we'd like. It's not all the things we think we need," Mr Gingrich said. "But given that we were negotiating with a very liberal administration, I think it is a remarkable step in the right direction.

"The credit will probably flow in appropriate proportions to everybody involved in it," said President Clinton about the compromise.

"There are still all these things that there is disagreement on - that you can have a legitimate, exciting, campaign about."

Republicans are expected to continue to attack spending for the poor and elderly and oppose a rise in the minimum wage.