(VOVworld) - US President Barack Obama has signed an order on 85 billion USD budget cuts for the 2013 fiscal year. The cuts are based on a 2011 agreement which stipulates that if the White House and the Congress fail to agree on measures to cut budget deficits, the annual federal budget will be automatically slashed. "These cuts will hurt our economy, will cost us jobs and to set it right both sides need to be able to compromise," Mr Obama said, describing the budget trimming as "dumb" and "unnecessary." Mr Obama blamed the cuts on Republicans, who refused to close tax loopholes for the rich and corporations. Economists say when the budget cuts are fully implemented, the poor and the unemployed will no longer receive social welfare.

US President Barack Obama (Source: BBC)