The United States President Barack Obama seems to have gone wiser by the day and has brought in the ‘PAYGO’ legislation. This legislation aims to reduce the government spending by a considerable amount.
The legislation says that all the new congress tax cuts or increase in the government expenditure will result in higher taxes and lesser spending in some other department of the government so that the excess spending is offset.
The statutory “Pay as you go” legislation has been submitted with the aim of curbing government expenditure and preventing it from going over board. If this legislation were to work, the fiscal deficit in the United States could slightly bee soothed. Touted to hit a whopping 1.8 trillion mark this fiscal, the mood of the US economy still remains gloomy.
