President Barack Obama’s new budget has been unveiled as a 3.73 trillion dollar spending blueprint that pledges 1.1 trillion dollars in deficit savings over the next decade through spending cuts and tax increases.
It projects that the deficit for the current year will surge to an all-time high of 1.65 trillion dollars.
That reflects a sizeable tax-cut agreement reached with Republicans in December.
For 2012, the administration sees the imbalance declining to 1.1 trillion dollars, giving the country a record four straight years of 1 trillion dollar-plus deficits.
Senior administration officials said Mr Obama would achieve two-thirds of his projected savings through spending cuts that include a five-year freeze on many domestic programmes.
The other one-third of the savings would come from tax increases, including limits on tax deductions for high-income taxpayers.
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