$3.8 Trillion Budget Passed By President Obama

President Obama announced $3.8 trillion budget for 2011 and his 10 years budget plan. This budget includes $6.1 trillion deficit for the next year. This budget cuts many domestic programs and spending like: NASA return trips to moon. This new budget will make balance between two competing goals:

  • Continued government spending to boost the weak economy
  • Controlling the nation’s deficit.

After the announcement of new budget president Obama said, “We can not continue to spend more. This is a time to save what we can, spend what we need and live within our means”.

2011 budget will bring national unemployment rate at the average of 9.2 % and the nation’s gross domestic product growth to 3.8%. A new tax breaks and incentives for a small business are also proposed in this new budget. Other spending hikes like adding billions more for Pell Grants to help students pay for college was also proposed. This budget will bring an end to fossil-fuel tax subsidies for oil, gas and coal companies.

According to budget Chief Peter Orszag, the new budget is developed with “Paygo” principle, which requires new spending proposal or tax hikes. He also announces that this new budget will reduce the nation debt by $1.2 trillion over the next ten years in several ways.

President Obama’s budget got a mixed review. According to Harry Reid, a job is the top priority of the American people and so it is in Obama’s budget. But democrats were not pleased with the entire budget mainly on spending in so many categories.