Schwarzenegger unveils 143 billion budget

Jan 11, 2007, 0:09 GMT

San Francisco - California Governor Arnold Schwarzenegger on Wednesday unveiled a 143 billion dollar budget that included cuts to welfare and public transit systems.

Schwarzenegger said the 2007-2008 budget would eliminate the state's deficit.

'I am very happy to announce today that in this new budget, our net operating deficit has been reduced to zero,' Schwarzenegger said.

The spending plan was described as 'austere' by the Los Angeles Times. It includes a general fund of 103.14 billion dollars, special funds of 27.69 billion dollars and bond funds of 12.58 billion dollars.

Presentation of the budget capped a week of frantic political activity for the former action movie star. He was sworn in for a second term last Friday and quickly announced ambitious plans for universal health care and a 10 per cent cut in greenhouse emissions from vehicle fuel.

In his State of the State address to the California legislature Tuesday, Schwarzenegger said the US's richest and most populous state was in effect a 'nation-state' that could lead the country and the world in cutting edge environmental policies.

Political analysts said the speech signaled Schwarzenegger's national and international political ambitions. He is legally barred from becoming president because he was not born in the US.