A new budget plan was passed by the US Congress last night with the reduced spendings on Medicaid and increased attention to oil drilling in Alaska. The plan is worth $2.6 trillion.

The budget plan also pays attention to tax reductions over $70 billion, as well as $10-billion reductions from Medicaid – a real victory for President George Bush who was struggling for cuts in federal benefits programs.

The plan was passed by the Senate 52-47 and approved by the House earlier yesterday, 214-211.

Medicaid cuts were opposed in the Senate. ``We’re taking a program that’s going to grow at 41% in the next five years and reducing its rate of growth to 39%. If we’re halfway decent as managers of the tax dollars of Americans, we can do that,’’ Senate Budget Committee Chairman Judd Gregg, a New Hampshire Republican, said of Medicaid.

The US budget deficit reached $412 billion last fiscal year and may grow to $383 billion in 2006 and to $211 billion by 2010, according to the latest estimates.