US house approves deal on Budget bill

AT the eleventh hour, the US House of Representatives yesterday approved a Budget deal cutting $38bn (£23.2bn) in spending for the current fiscal year, enabling the government to keep operating until 30 September.

The House passed the bill by a vote of 260 to 167, and sent it to the Senate, which was set to pass the bill late last night before existing funding ran out at midnight.

About one-fourth of House Republicans defected because the cuts were not deep enough and more than half of Democrats rebelled against cuts they feared would hurt lower income Americans. The House vote was the first act in a growing political battle over spending and debt, with Obama and Congress gearing up for new fights over an increase in the $14.3 trillion US debt limit.