'Fiscal cliff' deal reached between White House, lawmakers - source

WASHINGTON Tue Jan 1, 2013 8:10am IST

The U.S. Capitol building is pictured as lawmakers return from the Christmas recess in Washington December 27, 2012. REUTERS/Mary F. Calvert

The U.S. Capitol building is pictured as lawmakers return from the Christmas recess in Washington December 27, 2012.

Credit: Reuters/Mary F. Calvert

A statue of Ganesh, the deity of prosperity, is carried in a taxi to a place of worship on the first day of the ten-day-long Ganesh Chaturthi festival in Mumbai August 29, 2014. REUTERS/Danish Siddiqui

Ganesh Chaturthi Festival

During Ganesh Chaturthi idols will be taken through the streets in a procession accompanied by dancing and singing, and will be immersed in a river or the sea in accordance with Hindu faith.  Slideshow 

WASHINGTON (Reuters) - The White House and congressional lawmakers have reached a deal to avoid the "fiscal cliff" that would delay harsh spending cuts by two months, Obama administration officials said on Monday.

President Barack Obama called Democratic Senate Majority Leader Harry Reid and House of Representatives Minority Leader Nancy Pelosi, who both signed off on the deal, one source said.

The agreement includes a balance of spending cuts and revenue increases to pay for the delay in the automatic spending cuts that would go into effect without a deal by lawmakers.

Of those spending cuts, 50 percent would come from defense and 50 percent from non-defense areas, the sources said. The White House viewed that as a victory, one source said, and sees it as a model for future deficit reduction pacts.

Vice President Joe Biden traveled to Capitol Hill to discuss the deal.

(Reporting by Jeff Mason and Mark Felsenthal; Editing by Peter Cooney)

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