Obama announces Office of Management and Budget nominees

President elect Obama announced his nominees for the White House's Office of Management and Budget (OMB) and discussed a plan to cut wasteful government spending.

Peter Orzag, director of the Congressional Budget office, will serve as the new OMB director and Robert Nabors, 13th Clerk and Staff Director of the House Appropriations Committee, will serve as OMB deputy director.

Following the President-elect's statement yesterday that his economic team would craft a stimulus package aimed at creating jobs and rebuilding the national infrastructure, Obama announced that in order to pursue these investments, the U.S. will need to cut wasteful spending.

"When we are facing both rising deficits and a sinking economy, budget reform is not an option. It is an imperative. We cannot sustain a system that bleeds billions of taxpayer dollars on programs that have outlived their usefulness, or exist solely because of the power of a politician, lobbyist, or interest group. We simply cannot afford it," said Obama during a press conference held at the Chicago Hilton Hotel.

"This isn’t about big government or small government. It’s about building a smarter government that focuses on what works. "

The President-elect also said that the responsibility for shaping a more effective budget will fall with the OMB, and that Orzag's prior experience is ideal for this task.

"Peter doesn’t need a map to tell him where the bodies are buried in the federal budget. He knows what works and what doesn’t, what is worthy of our precious tax dollars and what is not," said Obama.