Obama Budget unveils massive deficits

US President Barack Obama sent USD 3.83 trillion budget to US Congress on Monday that would pour more money into the fight against high unemployment, boost taxes on the wealthy and freeze spending for a wide swath of government programs.

The deficit for this year would surge to a record-breaking USD 1.56 trillion, topping last year's then unprecedented USD 1.41 trillion gap.

The deficit would remain above USD 1 trillion in 2011, although the president proposed to institute a three-year budget freeze on a variety of programs outside of the military and homeland security as well as increasing taxes on energy producers and families making more than USD 250,000.

Echoing the pledge in his State of the Union address to make job creation his top priority, Obama put forward a budget that included a USD 100 billion jobs measure that would provide tax breaks to encourage businesses to boost hiring as well as increased government spending on infrastructure and energy projects.

After a protracted battle on health care dominated his first year in office and led to a string of Democratic election defeats, the administration hopes its new budget will convince Americans the president is focused on fixing the economy.