United States President Barack Obama has issued plans to trim $US1.1 trillion from the budget deficit over the next 10 years.
Mr Obama said two-thirds of the savings would be made through cuts to government expenditure and the rest through tax increases.
He said the United States must live within its means and called for some reductions, but said "we can't sacrifice our future" with drastic cuts.
However, Republicans, who control the House of Representatives, do not think the proposals go far enough in tackling the deficit.
They have already called for $US61 billionn in cuts to the remainder of the current fiscal year.
House of Representatives Speaker John Boehner, told NBC TV that the proposed budget would "continue to destroy jobs by spending too much, borrowing too much and taxing too much."
Mr Obama's budget proposes total spending of $US3.73 trillion in the 2012 budget year, which begins in October, which is a 2.4% reduction from the current year.
He also reiterated a call for $US78 billion in cuts to the defence budget over five years.