US 2011 budget

US President Barack Obama has announced a $3.8 trillion budget plan for 2011, which includes increased spending for job creation, but cuts in other areas.



He also forecast that the US deficit would rise to a record $1.56 trillion this year.



Meanwhile, the president has scrapped plans to send astronauts back to the Moon and will seek to save 250 billion by capping a range of domestic spending programmes for three years.



The budget includes about $100 billion in tax incentives designed to lower double-digit unemployment, including inducements for companies to hire workers.



This will be partially offset by higher taxes on wealthy Americans earning more than $250 thousand a year.



However Congress must approve the budget for the financial year starting on October 1 for it to take effect.