The US House of Representatives has passed a budget plan for 2012 which seeks to reduce $6.2 trillion in spending by the government over the next decade.
Fiscal 2012 begins on October 1.
The bill passed the Republican-controlled House by 235-193 vote (only four Republicans failed to approve it; and not one Democrat passed it, according to Reuters).
Proposed by Republican Congressman Paul Ryan, the scheme would cut spending on social programs for the poor, for healthcare and would require the elderly to increase their healthcare cost burden.
In a sense, the bill would overhaul Medicare and Medicaid.
The measure will also reduce taxes for the wealthy.
However, the bill will likely be passed by the Democratic-dominated Senate.
Republicans feel that spending reductions are necessary to cut the federal deficit.
House Speaker John Boehner told reporters: “It’s a serious step in the right direction and I’m really hopeful the president will take his job as seriously as we’re taking ours.”
On Thursday, the Congress passed a budget bill that would reduce $38.5-billion in government spending over the rest of the current fiscal year.