US President warns G20 leaders over budget cuts

US President warns G20 leaders over budget cutsThe US President Barack Obama has warned the G20 leaders about cutting the national debts which could harm the economic recovery and can risk the economic reform of the country.

In his letter to G20 leaders, the President has said that it is the time to use credible plans to cut the deficit despite of withdrawing economic stimulus so early. It is dangerous for they need to take some strong steps.

President Obama has also added that the US would halve its own deficit by the year 2013. The US budget deficit is expected to be cut by 3% of GDP by the year 2015.

The leaders of the G20, who are the leaders of the 20 leading economies of the world, are going to meet on 26th June in Toronto.

According to Obama, the first priority of the meeting should be to protect and strengthen the economic recovery. As per experts, this letter is showing concern of the US administration over the recent changes of the economy policy in Europe. The governments of big European countries like UK and Germany have decided to adopt some plans for spending cuts.