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Obama to unveil 2011 budget plans Obama to unveil $3.8tn US budget
(about 5 hours later)
US President Barack Obama is due to unveil his 2011 budget proposals which aim to tackle the record US deficit as well as creating new jobs. US President Barack Obama is due to unveil a $3.8tn (£2.4tn) budget which includes increased spending for job schemes, but cuts in other areas.
Mr Obama's budget is expected to cost $3.8tn (£2.4tn) and it seeks to save $250bn by capping a range of domestic programmes for three years. The US deficit has soared to $1.4tn and Mr Obama's budget could push it to $1.6tn this year.
The US deficit has soared to $1.4tn and the unemployment now stands at 10%. He is expected to scrap plans to send astronauts back to the Moon, and will seek to save $250bn by capping a range of domestic programmes for three years.
Mr Obama's proposals for the fiscal year that will begin on 1 October must be approved by Congress. Congress must pass the budget for the financial year starting on 1 October.
Scepticism Having pledged in last week's State of the Union address to make job creation his top priority, Mr Obama will propose $100bn for tax breaks to encourage businesses to hire staff.
The deficit has been affected by a drop in tax revenue from the 7.2 million people who have lost jobs since the recession began. Unemployment now stands at 10%.
The economic stimulus package of $787bn announced in February 2009 has also had an impact on the deficit.
Moon base doubts
There is a real tension in what the White House is trying to do with next year's budget, the BBC's Richard Lister in Washington reports.There is a real tension in what the White House is trying to do with next year's budget, the BBC's Richard Lister in Washington reports.
HOW BIG IS ONE TRILLION? Big numbers explained
On the one hand, the Obama administration wants to spend more money on things like green technology to create jobs, while on the other it is trying to scale back spending to shrink the deficit, our correspondent says.On the one hand, the Obama administration wants to spend more money on things like green technology to create jobs, while on the other it is trying to scale back spending to shrink the deficit, our correspondent says.
In all, about 120 government programmes are expected to be cut back.In all, about 120 government programmes are expected to be cut back.
It is widely thought that some big-ticket items - like Nasa's moonbase project - will be scrapped altogether. It is widely thought that some big-ticket items - like Nasa's Moon base project - will be scrapped altogether.
Pre-announcement briefings have trailed the likelihood of the agency getting a $6bn increase in its funding over the next five years.
The plan to establish an American base on the Moon was announced by President George W Bush in 2004.
Under Mr Obama's budget plans, Nasa would get funding to encourage private companies to build, launch and operate their own spacecraft, which could be used to carry astronauts to the International Space Station.
Mr Obama has already announced a three-year cap on some domestic spending.Mr Obama has already announced a three-year cap on some domestic spending.
But education is expected to see record new investment, and defence spending would also increase. But education is expected to see record investment and defence spending would also increase.
The Democrats - who refused to pass many of the president's cost-cutting measures last year - are also sceptical about some of the planned savings this year, our correspondent reports.The Democrats - who refused to pass many of the president's cost-cutting measures last year - are also sceptical about some of the planned savings this year, our correspondent reports.
He adds that the Republicans say the proposals do not go nearly far enough.He adds that the Republicans say the proposals do not go nearly far enough.