Barack Obama seeks overall US spending freeze

US PRESIDENT Barack Obama says he is making difficult cuts to allow spending increases in education, technology and basic infrastructure such as roads and bridges.

In a broad preview of his administration's budget for 2012, Obama said the combination of cuts and new spending will result in an overall freeze in annual domestic spending for the next five years.

"This budget asks Washington to live within its means, while at the same time investing in our future," the president said in his weekly radio and internet address. The White House plans to release budget details tomorrow.

With public opinion turning against increased spending, Obama is making a concerted sales pitch to cast his initiatives as fiscally prudent. But the goal of taming deficits while adding dollars to selected projects comes as the government faces a projected $1.5 trillion (940 billion) deficit this fiscal year, which ends in September. Republicans in the House of Representatives are demanding greater deficit reduction efforts and want to cut the 2011 budget by $61bn.

The White House projects that the five-year freeze will save $400bn. Cost-saving measures include a two-year freeze on wages for civilian federal workers.

The budget would also make cuts in the Low-Income Home Energy Assistance Programme, which could be trimmed in half - by about $2.5bn. The Energy Department plans to propose cutting the Office of Fossil Energy by 45 per cent, or $418m.

The Pentagon's budget would see reductions of $78bn.

Obama said the government is also getting rid of unused government-owned buildings and he would also save money by vetoing legislation that contains "earmarks", congressionally inserted spending measures for special projects.

At the same time, Obama has proposed a series of new spending initiatives on early learning programmes and an overhaul of education.