Feb 13, 2010 1:03 PM by Associated Press

Obama says new budget rules will rein in spending.

President Barack Obama says new budget rules he's signed into law now mean that any spending increases must be matched by spending cuts.

In his weekly radio and Internet address, Obama says the rules, known as "paygo," short for pay as you go, will force Congress to "pay for what it spends, just like everybody else." The same budget rules were in place during the 1990s, helping to create balanced budgets and surpluses.

The bill signed yesterday also lifted the cap on the amount of money the U.S. can borrow by $1.9 trillion - to a total of $14.3 trillion, to keep the U.S. from going into default.

In his address, Obama said the "politics of the moment" often overwhelms the desire Democrats and Republicans have to produce balanced budgets. He notes the federal government is not legally required to do so.

Obama did not discuss raising the debt ceiling in his message.


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