Obama seeks to cut defict by $1.1 trillion

US President Barack Obama's proposed budget for the fiscal 2012 will seek to cut the record federal deficit by $1.1 trillion over the next 10 years, a senior Democratic aide said today.

US President Barack Obama's proposed budget for the fiscal 2012 will seek to cut the record federal deficit by $1.1 trillion over the next 10 years, a senior Democratic aide said on Sunday.

HT Image

Obama, set to present his budget to the Congress on Monday, intends to get two thirds of the savings from spending cuts and one third from tax increases, the aide said, adding it would reduce Pentagon spending by $78 billion over the next five years.

Pentagon cuts would include the C-17 aircraft, the alternate engine to the Joint Strike Fighter and the Marine Expeditionary Vehicle that the Defense Department says it doesn't need.