Obama signs law to curb improper payments and waste

WASHINGTON (Reuters) - President Barack Obama on Thursday signed a new law to reduce wasteful and fraudulent government payments and stressed that he was looking out for taxpayers, in remarks aimed at easing election year concern over public finances.

"When government doesn't work like it should, it has a real effect on people's lives," Obama said at the White House signing ceremony, noting improper payments last year had reached a record of nearly $110 billion.

This included benefits payments to people who were dead, in jail or on the run from the law, which the White House said collectively totaled $410 million over the last three years.

Obama has set a goal to curb improper payments by $50 billion between now and 2012.

Polls show voters are concerned about the record deficit and rising debts ahead of November 2 midterm congressional elections, when Obama's Democrats could be ousted by voters irked by perceptions of high government spending and lofty unemployment.

"The bill I'm signing today passed unanimously in both the House and the Senate -- a powerful reminder of what we can accomplish when we put partisanship aside and do what's best for the people we serve," Obama said.

The White House has castigated Republican lawmakers for blocking passage of Obama's policies in Congress, particularly the extension of unemployment insurance to 2.5 million jobless Americans for whom aid had lapsed, which was finally passed by the U.S. Senate on Wednesday.

(Reporting by Alister Bull; Editing by Stacey Joyce)