Obama unveils 'jumpstart' 2011 budget
Barack Obama unveils $3.8 trillion budget for 2011, juggling $1.56 trillion deficit with jobless levels of ten per cent
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By Darren Plant. |  |
Monday, 01, Feb 2010 05:12
By Matthew Champion.
Barack Obama has unveiled his $3.8 trillion (£2.39 billion) budget for 2011, which juggles the need to address a $1.56 trillion deficit while tackling unemployment levels of ten per cent.
The US president said his budget, which is subject to Congressional approval, would help "jumpstart" the country's floundering jobs market by offering tax breaks to employers.
$20 billion worth of "common sense" cuts have been identified from 120 programmes by the US president, while $250 billion will be saved over free years from the freezing of many other programmes.
Education will witness a 6.2 per cent rise in spending, however, while defence spending will also not be frozen.
President Obama promised tax breaks for energy efficient homes and $6 billion in funding for clean technologies.
Click here to browse the entire budget proposal
"Rather than fight the same tired battles that have dominated Washington for decades, it's time to try something new," President Obama said.
"Let's invest in our people without leaving them a mountain of debt. Let's meet our responsibility to the citizens who sent us here. Let's try common sense."
Peter Orszag, director of the office of management and budget, added that central to the president's agenda was his healthcare reform plans jeopardised by the loss of the Democrats' supermajority in the Senate.
"All our steps to rein in the deficit will be for naught if we do not reduce the rate of healthcare cost growth over time," Mr Orszag said.
"The legislation passed by both the House and Senate will reduce the deficit over the next decade and put in place the key pieces that will help to bring down healthcare costs over time."