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By Caren Bohan and Aruna Viswanatha WASHINGTON (Reuters) - A senior Democrat said on Sunday he hoped an emerging deal on the U.S. budget would include an extension of unemployment benefits but added that his party would not necessarily walk away from an agreement that left it out. "I don't think we've reached that point where we've said, ‘This is it, take it or leave it,'" Senator Richard Durbin told the ABC program "This Week," when pressed on whether his party would insist on including jobless aid in a final deal. Durbin, the second-ranking Senate Democrat, said that based on what he has heard from Senator Patty Murray, the lead Democratic negotiator on the budget, the fiscal talks are making progress and moving in the right direction. The House of Representatives and Senate budget panel, created after the government shutdown in October, is discussing a two-year accord that would ease the impact of across-the-board spending cuts known as the "sequester" and lower the near-term risk of another damaging fiscal showdown.