U.S. President Barack Obama proposed the largest in history defense budget totaling $708bn to the Congress. This amount makes about 20% of $3.8 trillion budget for 2011 fiscal year.

The budget includes extra $33bn war funding for FY 2010 mainly to finance new strategy in Afghanistan and Pakistan.

U.S. budget deficit is forecasted to total $1.6 trillion. Thus, Obama has to balance: he intends to spend $100 billion to tackle unemployment and on the other hand reduce budget deficit.

“It is time to hold Washington to the same standard families and businesses hold themselves. It is time to save what we can and what we must and live within our means once again,” Voice of America quotes U.S. President.

A.G.