Mr Obama faces mounting criticism for the amount of government spending
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.
The US deficit has soared to $1.4tn and Mr Obama’s budget could push it to $1.6tn this year.
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.
Congress must pass the budget for the financial year starting on 1 October.
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.
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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.
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.
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.
He adds that the Republicans say the proposals do not go nearly far enough.
The GOP which professes to be a “big tent” party despite seemingly opposite evidence is trying to co-opt the tea party for its own political reward. You observe Michael Steele’s commentary that (paraphrase) “we have got to work in concert to kill Obama’s agenda.” Where are the proactive instructions? How do you cut down the deficit by reducing taxes? How do you repair the health care issue? While I am very irate at dems in congress and, to a certain extent Obama and his advisors, for not being more aggressive in getting the facts out, I also think that while the repubs have realized momentum by broad resistance the tide is about to turn. You have to promote ideas supported by empirical information that are good for the nation
Barack Obama is a very special person since he is the first black president of the United States of America. his ability as a president is also very good and his plans for economic recovery is a good one.
And now our illustrious new senator from Mass votes for Stimulus II thinking it will actually create jobs! Too bad he didn’t read this piece before he voted. What is it with these politicians that as soon as they get to DC start acting like ” I got to vote like I’m doing something for the folk back home even if it is the stupidest idea ever”? Oh, I forgot, I guess that is after all how you get re-elected.