Obama Reveals Budget Proposals

More money slated for struggling banks

Obama pledges to slash deficit after initial increase.

President Barack Obama unveiled his budget plans for 2009 and 2010 today. Some of the big items for this  year  include $410 billion for federal programs and dedicating $250 billion to bailing out banks. This is in addition to the $700 billion TARP fund.

Big budgets

The fiscal year 2009 ends in September. Obama’s proposal for the remainder of this year adds up to about $3.94 trillion. The proposed budget for 2010 costs $3.55 trillion.

Big ticket item: health care

As expected, the 2010 budget calls for dedicating $634 billion to to health care reform. The administration calls this a “down payment” on the ultimate goal of universal health care.

Pay caps on government salaries

The 2010 budget calls for a freeze on salaries for all White House senior staff. Other civilian employees for the federal government would be limited to receiving a 2 percent pay raise. This year government workers got up to a 3.9 percent salary increase.

Bumping up deficit, defense

Obama’s plans for 2009 would push the annual budget deficit to $1.75 trillion. The 2010 budget increases defense spending by 4 percent, up to $534 billion.

Military pay caps

In addition to the pay caps for civilian government employees, Obama has also proposed a cap on military salary increases. His plan would limit raises for military personnel to 2.9 percent. ... click here to read the rest of the article titled "Obama Reveals Budget Proposals"