US government begins partial shutdown as budget deadline lapses

01 October 2013 05:32  [Source: ICIS news]

SINGAPORE (ICIS)--The US government has begun a partial shutdown on Tuesday after the Republican-led House of Representatives failed to reach an agreement over the budget for next year, according to various media reports.

Some 800,000 US government workers are facing unpaid leave with no guarantee of back pay once the deadlock is over, they indicated.

Republicans have insisted on delaying funding President Obama's health care reforms –

which was passed by Congress in 2010 and becomes effective on 1 October – for a year as a condition for passing the budget.

The partial shutdown on Tuesday is the US government's first in 17 years, according to media reports.

“A shutdown will have a very real economic impact on real people, right away,” US President Barack Obama said in a speech on Monday.

“Past shutdowns have disrupted the economy significantly. This one would, too.  It would throw a wrench into the gears of our economy at a time when those gears have gained some traction,” he said.

By: Nurluqman Suratman

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