MercoPress. South Atlantic News Agency

Obama proposes drastic budget cuts; goal: 3.2% of GDP deficit by 2015

Tough fight ahead for Obama since Republicans want more trimming

President Barack Obama proposed a budget that would cut the US deficit by 1.1 trillion US dollars over 10 years, setting the stage for a bitter fight with the opposition Republicans who vow even tougher spending controls.

Details of the budget proposal provided by the White House before its official release showed the deficit rising to 1.645 trillion USD in fiscal 2011, then falling sharply to 1.101 trillion USD in 2012.

This trend would trim the deficit as a share of the U.S. economy to 3.2% by 2015 from 10.9% this year.

“Even though we might have some differences at the outset, we're very eager to work with Republicans to cut spending, reduce our deficit” a senior Obama administration official told reporters.

The official cited a December tax pact forged between Obama and Republicans as evidence the two sides can work together.

“The debate in Washington is not whether to cut or to spend. We both agree we should cut. The question is how we cut and what we cut,” the official said.