President Barack Obama said that the annual budget he will be proposing on Monday will cut approximately $1.1 trillion from projected deficits over the next ten years.
The president stated that this plan would give the nation breathing room while its longer-term problems are tended to.
The reductions will begin with the next fiscal year of 2012—which begins Oct. 1st—and includes cuts in spending for many of the domestic programs that the president supports, including public health, low-income family assistance, airport grants, forestry programs and grants for water treatment plants.
The budget would also reduce military spending and the costs to several health care programs. Obama would also extend the Bush-era tax cuts to people whose taxable income is less than $250,000 per year, and will once again push for a limit on the tax deductions that can be claimed by people in the upper brackets—a move Congress has repeatedly rejected.
According to a senior Obama Administration official, the president’s budget would yield a deficit of slightly over 3 percent of the gross domestic product by 2015 and remain around that number through around 2021, when forecasts show the annual deficits rising higher once again due to growing health care costs and again population.
However, considering that long-term budget and deficit projections are subject to many variables—both economically and politically—and are therefore not always reliable, Obama’s budget is viewed as more of a statement to voters that it is a priority to him to reduce annual deficits—especially considering that Republicans are in control of the house.