White House on defensive over spending cuts

By Ross Colvin

WASHINGTON (Reuters) - President Barack Obama challenged U.S. government departments on Monday to find $100 million in savings, but the move was mocked by critics who said the government spent that amount in just 13 minutes.

Obama, who has vowed to cut the country's ballooning deficit in half by 2013, told his Cabinet at their first meeting to identify the spending cuts and report back in three months.

Asked by a reporter after the meeting if the $100 million was not just a drop in the bucket, Obama acknowledged it was, saying: "$100 million there, $100 million here. Pretty soon, even in Washington, it's going to add up to real money."

He said his government had launched a number of initiatives to cut spending, which has exploded as his administration grapples with the worst economic crisis in decades.

"None of these savings by themselves are going to solve our long-term fiscal problems, but taken together they can make a difference, and they send a signal that we are serious about changing how government operates," Obama said.

But opposition Republicans derided the publicity given by Obama's Democrat administration to the $100 million savings drive, saying the government was projected to spend $4 trillion this fiscal year alone.

"That works out to $7.6 million in spending per minute. It will take about 13 minutes for the federal government to spend $100 million," Congressional Republicans said in a statement.

DEFICIT SPENDING