• WASHINGTON. Nov 10: The Republicans say their election victory gives them a mandate lor their economic programme for the country, a major bone of contention during the campaign. but in fact It Is unlikely to bring radical changes to US economic policy, reports AFP.

"We have a contract with America .... our first obligation Is to honour the contract." proclaimed Newt Gingrich of Georgia, the likely new speaker of the House of Representatives, once it became clear that the Republicans had gained control of both houses of Congress for ihe first time In 40 years. ..

He was referring to the "contract with America" put forward during the carjipalgn which calls for an amendment to the constitution requiring a balanced budget, lower taxes

for business, and cuts in welfare spending.

The proposals came under attack from Democrats in the run-up to Tuesday's election, but the bottom line is that basically both parties want to reduce the budget deficit arid control health and retirement benefit spending.

And while the Republicans tore apart President Bill Clinton's plans to reform the entire health care system in this • country, they are not against the idea of doing something to bring health spending down.

Republican John KasiCh is expected to take over as chairman of the House budget committee, with Pete Dominici holding that position in the Senate, and they will no doubt be presenting the proposals for controls on’ health and retirement spending.