ID :
195856
Tue, 07/19/2011 - 14:47
Auther :
Shortlink :
https://www.oananews.org//node/195856
The shortlink copeid
US Senator questions US' aid to India
From Lalit K Jha
Washington, Jul 19 (PTI) Arguing that borrowing from
countries which receive aid from the US is dangerous, a
Republican Senator questioned the decision of the Obama
Administration to give financial assistance to nations like
India that has bought USD 39.8 billion of American debt bonds.
"Borrowing money from countries who receive our aid is
dangerous for both the donor and recipient. If countries can
afford to buy US debt, they can afford to fund their own
assistance programmes," Tom Coburn said in his report 'Back in
Black: A deficit Reduction Plan', unveiling the most ambitious
plan yet to break the debt ceiling stalemate.
In his 621-page report, Coburn referred to a recent
Congressional Research Service (CRS) which revealed that the
federal government gave USD 1.4 billion in foreign aid to 16
countries, including India and China, to whom the US owes USD
10 billion each.
According to the US Treasury Department, the largest
holder of US debt is China, owning USD 1.1 trillion Treasury
bonds and having received USD 27.2 million in foreign aid in
FY2010. "Brazil held USD 193.5 billion in Treasury securities
and received USD 25 million in foreign aid, Russia had USD
127.8 billion and received USD 71.5 million, and India held
USD 39.8 billion and received USD 126.6 million from the US,"
the Senator said.
In a letter to Coburn on May 13, the CRS said India in
2010 received USD 126.6 million -- this includes USD 2.5
million for counter-terrorism, USD 700,000 for combating
weapons of mass destruction, USD 30 million for fighting
HIV/AIDS, USD 22 million for family planning, USD 19 million
for maternal and child health and USD 13.7 million for
fighting tuberculosis.
India is listed eight in the list of 16 countries that
hold more than USD 10 billion of US debt.
"If countries can afford to buy our debt perhaps they can
afford to fund assistance programmes on their own. At the same
time, when we borrow from countries we are supposedly helping
to develop, we put off hard budget choices here at home. The
status quo creates co-dependency and financial risk at home
and abroad," Coburn said.
The US President Barack Obama had recently defended the
massive foreign aid arguing that this is an investment on
which the return is much higher.
"I think it's important for people to know that foreign
aid accounts for less than 2 per cent of our budget. If you
defined it just narrowly as the kind of foreign aid to help
feed people and what we think of classically as foreign aid,
it's probably closer to 1 per cent," Obama said in response to
a question during the first ever Twitter Town Hall at the
White House on July 6.
"So sometimes people have an exaggerated sense that we
spend 25 percent of the federal budget on foreign aid. It's a
tiny amount that has a big impact," Obama had argued in
response to a question.
Unveiling a plan at a news conference, Coburn said his
plan would secure more than USD 2.6 trillion in entitlement
savings, USD 1 trillion from military budgets, about USD 1
trillion from discretionary programs and USD 1.3 trillion in
interest savings. He called his package bold, necessary and
reasonable.
"One trillion dollars in defense cuts is reasonable. The
threat of borrowing from China is greater than the threat of
an armed conflict from China," Coburn told reporters at a news
conference."This plan offers the American people USD 9 trillion
reasons to stop making excuses and start solving the problems
in Washington. I have no doubt both parties will criticize
portions of this plan, and I welcome that debate," Coburn
said.
"But it's not a legitimate criticism until you have a
plan of your own, a plan that solves the problems of the
future, that secures prosperity for our kids and our
grandkids. It's time to show the American people not only what
is possible but also what is necessary."
The Senator said: "What is not acceptable, however, is
not having a plan and delaying reform until some perfect
political moment that will never arrive. The fact is, doing
nothing is a tax increase, a benefit cut for seniors and the
poor, and a betrayal of our values."
Congress is like a man who has six credit cards and is
going to get the seventh one so he can make the minimum
payments on the other six, he said ,adding, "the problem is,
is we're not going to have that option anymore, and neither
will he."
Washington, Jul 19 (PTI) Arguing that borrowing from
countries which receive aid from the US is dangerous, a
Republican Senator questioned the decision of the Obama
Administration to give financial assistance to nations like
India that has bought USD 39.8 billion of American debt bonds.
"Borrowing money from countries who receive our aid is
dangerous for both the donor and recipient. If countries can
afford to buy US debt, they can afford to fund their own
assistance programmes," Tom Coburn said in his report 'Back in
Black: A deficit Reduction Plan', unveiling the most ambitious
plan yet to break the debt ceiling stalemate.
In his 621-page report, Coburn referred to a recent
Congressional Research Service (CRS) which revealed that the
federal government gave USD 1.4 billion in foreign aid to 16
countries, including India and China, to whom the US owes USD
10 billion each.
According to the US Treasury Department, the largest
holder of US debt is China, owning USD 1.1 trillion Treasury
bonds and having received USD 27.2 million in foreign aid in
FY2010. "Brazil held USD 193.5 billion in Treasury securities
and received USD 25 million in foreign aid, Russia had USD
127.8 billion and received USD 71.5 million, and India held
USD 39.8 billion and received USD 126.6 million from the US,"
the Senator said.
In a letter to Coburn on May 13, the CRS said India in
2010 received USD 126.6 million -- this includes USD 2.5
million for counter-terrorism, USD 700,000 for combating
weapons of mass destruction, USD 30 million for fighting
HIV/AIDS, USD 22 million for family planning, USD 19 million
for maternal and child health and USD 13.7 million for
fighting tuberculosis.
India is listed eight in the list of 16 countries that
hold more than USD 10 billion of US debt.
"If countries can afford to buy our debt perhaps they can
afford to fund assistance programmes on their own. At the same
time, when we borrow from countries we are supposedly helping
to develop, we put off hard budget choices here at home. The
status quo creates co-dependency and financial risk at home
and abroad," Coburn said.
The US President Barack Obama had recently defended the
massive foreign aid arguing that this is an investment on
which the return is much higher.
"I think it's important for people to know that foreign
aid accounts for less than 2 per cent of our budget. If you
defined it just narrowly as the kind of foreign aid to help
feed people and what we think of classically as foreign aid,
it's probably closer to 1 per cent," Obama said in response to
a question during the first ever Twitter Town Hall at the
White House on July 6.
"So sometimes people have an exaggerated sense that we
spend 25 percent of the federal budget on foreign aid. It's a
tiny amount that has a big impact," Obama had argued in
response to a question.
Unveiling a plan at a news conference, Coburn said his
plan would secure more than USD 2.6 trillion in entitlement
savings, USD 1 trillion from military budgets, about USD 1
trillion from discretionary programs and USD 1.3 trillion in
interest savings. He called his package bold, necessary and
reasonable.
"One trillion dollars in defense cuts is reasonable. The
threat of borrowing from China is greater than the threat of
an armed conflict from China," Coburn told reporters at a news
conference."This plan offers the American people USD 9 trillion
reasons to stop making excuses and start solving the problems
in Washington. I have no doubt both parties will criticize
portions of this plan, and I welcome that debate," Coburn
said.
"But it's not a legitimate criticism until you have a
plan of your own, a plan that solves the problems of the
future, that secures prosperity for our kids and our
grandkids. It's time to show the American people not only what
is possible but also what is necessary."
The Senator said: "What is not acceptable, however, is
not having a plan and delaying reform until some perfect
political moment that will never arrive. The fact is, doing
nothing is a tax increase, a benefit cut for seniors and the
poor, and a betrayal of our values."
Congress is like a man who has six credit cards and is
going to get the seventh one so he can make the minimum
payments on the other six, he said ,adding, "the problem is,
is we're not going to have that option anymore, and neither
will he."
