08/18/2011 12:16 pm ET | Updated Oct 18, 2011

OMB: Federal Agencies Must Prepare For Cuts In 2013 Budget, Look To Enhance Economic Growth

Federal agency and department leaders should plan for a 5 percent reduction in discretionary spending in fiscal year 2013, and prepare for more cuts -- at least 10 percent -- according to a White House Office of Management and Budget memo issued yesterday. At the same time, agencies are being urged to look for opportunities to enhance economic growth.

Unless agencies have been given explicit direction to the contrary by OMB, overall agency funding requests for fiscal year 2013 should be "at least 5 percent below your 2011 enacted discretionary appropriation," OMB Director Jacob Lew wrote.

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