U.S. President Barack Obama is proposing a $3.8-trillion federal government budget. The spending plan will push the deficit to a record of nearly $1.6 trillion this year.
Mr. Obama says he is trying to balance the need for short-term spending to ease high unemployment, against the need to reduce deficits to help the long-term economic health of the nation.
His spending plan would increase taxes on wealthy individuals and some large banks, reduce subsidies for fossil fuels, and freeze spending on a portion of the budget. The budget would raise spending for jobs, the military and education.
The plan is scheduled to go into effect October 1, for budget (fiscal) year 2011. But the budget must first win congressional approval, in what is expected to be a long and contentious process.
Opposition Republicans are very critical of the spending plan. Republican Party Chairman Michael Steele called the budget a plan for "binge spending" that would bring higher deficits and "economic stagnation."