US Senate, House approve fiscal 2009 budget plans

The U.S. Senate passed a budget plan on Friday to eliminate the federal deficit by 2012 while spending more than President George W. Bush wants on domestic programs like schools and roads.

After a 15-hour debate that began on Thursday, the Senate voted 51-44 mostly along party lines to approve a nonbinding $3 trillion Democratic budget blueprint for the year beginning Oct. 1.

Before passing the measure, senators easily rejected a one-year ban on controversial spending projects, known as earmarks, that benefit specific cities or towns.

But they approved adding money for some international activities, including foreign aid, Iraq reconstruction, fighting AIDS globally and nuclear nonproliferation.

On Thursday, the Democratic-led House of Representatives voted 212-207 for a similar version of the budget without any Republicans supporting the measure.

The three main presidential candidates — Democratic Sens. Barack Obama of Illinois and Hillary Clinton of New York and Republican Sen. John McCain of Arizona — interrupted their campaigns to cast votes.

The House and Senate will try to work out differences between their two budgets, both of which claim to end deficit spending by 2012. This year’s budget deficit is forecast to hit about $400 billion.

TAX DEBATE

By a vote of 99-1, with all three presidential candidates voting yes, the Senate approved an amendment to extend some of Bush’s tax cuts, including one for low-income earners, a child tax credit and marriage penalty relief.

But the Democratic-led Senate rejected a Republican attempt to extend the remaining Bush tax cuts, many of which help the wealthy.

Clinton and Obama voted in favour of the overall budget plan, while McCain did not cast a vote.