Geithner Criticizes House Bill Cutting Spending

By DAMIAN PALETTA

PARIS—U.S. Treasury Secretary Timothy Geithner said Saturday that the package of spending cuts the House of Representatives passed earlier in the day would "undermine and damage our capacity to create jobs and expand the economy."

His comments came during a press conference after a summit of finance ministers and central bankers from the Group of 20 leading nations.

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U.S. Treasury Secretary Timothy F. Geithner at the G20 Finance summit.

Mr. Geithner twice avoided answering directly whether he thought a U.S. government shutdown could occur because of an impasse between the White House and House Republicans over spending levels. A temporary measure funding government operations expires on March 4.

He said he was "very confident Democrats and Republicans are going to be able to come together on a program to not just reduce spending but reduce our long-term deficits."

"The United States is going through the beginning of a very important national debate on how to make sure we are strengthening the economy, strengthening growth prospects by putting in place reforms that restore balance to our fiscal position, restore gravity to our fiscal position, and make sure we're going back to living within our means as a country," he said.

The House of Representatives early Saturday voted 235-189 to cut more than $61 billion from current spending levels, a move considered to be the biggest one-time cut in budget history if enacted. Senate Democrats are poised to reject the measure, and prospects for a government shutdown could grow if an agreement isn't reached by March 4.

Mr. Geithner pointed to the package of spending cuts and new spending programs the White House detailed in its budget proposal several days ago as the best way to both reduce deficits while still investing in economic growth.

"This is not a question just of how you reduce spending…but that those restraints on spending are complemented by the types of comprehensive changes you need to make sure deficits come down in the medium term," Mr. Geithner said.

Write to Damian Paletta at damian.paletta@wsj.com