President Barack Obama this week proposed a pay freeze for federal employees in line to receive an automatic raise at the beginning of the year.

Skeptics maintain that the freeze is simply a political move in light of the incoming Republican Congress’ looming threat to whack big government next year. They also maintain that the President’s move will barely put a dent in the nation’s $14 trillion debt or spiraling annual national deficit.

However, the pay freeze will save more than $5 billion over two years, according to the White House. That’s still a significant chunk of money, regardless of how small of a dent it will make in the deficit. It’s a step in the right direction.

Obama’s proposal must be approved by the lame-duck Congress, which is expected to support the measure. In fact, officials from both sides of the aisle are applauding the proposal.

Elected officials won’t be subject to the salary freeze, nor will military personnel, defense contractors, postal workers, federal court judges or their staffs. The pay freeze will affect all other federal employees on the executive branch payroll, however. This will include around 2 million federal workers who were in line to receive a pay increase in January.

The pay hike is an automatic one that was set by legislation passed back in 1990. According to the formula, the law calls for an automatic 0.9 percent raises for these employees each year. This year, those same employees enjoyed a 1.9 percent increase in their salaries, despite the tough economic times.

Obama noted that “small businesses and families are tightening their belts,” and “the government should, too.” There’s no doubt about it.

This is a sign that despite claims the recession has ended, the fiscal crunch that for so long has been gripping the nation has finally trickled back up to the top. In fact, many taxpayers would argue that this move has been long overdue for government payrolls across the board.