US President Barack Obama has proposed a $3.73 trillion budget to the US Congress. The budget has shown deficits being brought under control and the methods to be adopted are going to be quite harsh. He has proposed to balance the economy by bringing down the deficits in the budget by spending cuts and increasing the taxes.
His own deficit commission’s recommendations have been ignored in the blueprint which he has sent to the Congress. The commission has suggested to cut down the entitlement programs like Medicare and Social Security.
In the budget blueprint, Obama has suggested to trim down the deficits by $1.1 trillion and that too, over a decade. But in reality, the changes which he has proposed will actually add up to the deficits in the current fiscal year and also the next. As per the blueprint, the deficit may hit an all time high of $1.65 trillion in the current year and then it will have a sharp fall in the year 2012.
He feels that the economy will improve drastically by the end of 2012.
Experts are totally in the dark on how he will manage the deficits and steer the sinking economy from further being drowned.