The Hill reports:
President Barack Obama on Saturday congratulated Congress for restoring a requirement that the federal government spend only what it can afford — a day after authorizing $1.9 trillion more federal debt.
Obama used his weekly radio address to report that he signed into law on Friday night the legislation commonly known on Capitol Hill as “Pay-Go,” which has been used sporadically over the past 20 years by congressional budget-writers. Obama also repeated his call for $20 billion in budget cuts, a freeze in certain government spending, and the creation of a fiscal commission.
Pay-Go doesn't apply to most of the budget:
The pay-go legislation requires the government to fund any spending increases in entitlement programs by spending cuts or tax increases. But there are many exemptions — benefits like Medicare, Social Security, or annual provisions such as the Medicare “physician fix” that benefits doctors. It also would not apply to direct spending that is included in annual appropriations spending bills.
No fiscal prudence here!
