US President Barack Obama is presenting the 2011 budget today at White House in accordance to its fiscal policy of reducing the budget deficit of the US Federal Government which stands trillions of dollars.

According to Reuters, Obama is set to unveil a US$3.8 Trillion budget for fiscal year 2011. This budget is equivalent to more or less 2.4 Trillion pounds. This US$3.8 Trillion budget for 2011 includes US$100 billion budget for jobs with a US$1.6 Trillion budget deficit.

The $3.8 trillion budget that President Obama plans to submit to White House Congress calls for billions of dollars in new spending to combat persistently high unemployment and bolster a battered middle class. Ever since the onset of recession, unemployment rate increased dramatically among Americans. This includes a US$100 billion budget for a jobs bill that would include tax cuts for small businesses, social-safety-net programs, and aid to state and local governments.

In addition to the creation of jobs, Obama part of the 2011 White House Budget is Obama’s proposal of “spending freeze” slashing funding for hundreds of programs and raise taxes on banks and the wealthy to help rein in soaring budget deficits.

Part of this “spending freeze” are slashed budgets for other federal programs and agencies. Space agency NASA’s mission to fly back to the moon would be scrapped and some public works projects by the Army Corps of Engineers would also lose funding as part of the 2011 budget.

To reduce the huge White House budget deficit of about US$1.6 Trillion, Obama would impose the so-called “bank fees.” These are new fees on some of the US’ largest banks and permit a range of tax cuts to expire for families earning more than $250,000 a year, in addition to freezing non-security spending for three years.

A White House official confirmed to Reuters that the 2011 budget would include a 6 percent increase in civilian research programs. The 2011 budget would also provide more funds for military programs, including the Pentagon’s Special Operations forces, the U.S. Army’s Black Hawk and Chinook helicopters, and the F-35 Joint Strike Fighter.

New York Times said that spending at the federal agencies facing cuts would be kept at $447 billion annually through 2013 which would lead to a savings of $10 billion in the coming fiscal year. These savings would be used to lessen the federal government’s budget deficit.

The new White House budget that Obama is proposing on Monday, February 1, 2010 for fiscal year 2011, which begins in October 2011, will put the Federal Government on a “smooth glide path” to lower annual budget deficits over the next decade, according to his budget director, Peter R. Orszag.

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Tags: 2011 Budget, White House Budget