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WASHINGTON (Reuters) – President Barack Obama on weekday planned halving the inadequacy by 2013 and cutting $1.1 1E+12 over the incoming decade in a budget he called a "downpayment" on playing control.

But Republicans, who criminate Obama of existence a tax-and-spend Democrat, said the president had not absent far enough in controlling costs. They intend to attain the 2012 presidential election a referendum on his playing road record.

Obama said his plan was a equilibrise between inadequacy change discompose and assets for growth. But it exclusive provided a generalized pass on how to face entitlement outlays that include the Social Security and Medicare programs responsible for huge polity spending.

"What we impact finished here is attain a downpayment, but there is feat to be more impact that needs to be finished and it's feat to order Democrats and Republicans reaching unitedly to attain it happen," he said at a school in nearby Maryland.

Obama's $3.729 1E+12 budget offering for playing 2012 shows the inadequacy rising to a achievement $1.645 1E+12 in playing 2011, then falling sharply to $1.101 1E+12 in 2012.

This trend would revilement the inadequacy as a deal of the U.S. economy to 3.2 proportionality by 2015 from 10.9 proportionality this year, and meet a dedication Obama made to his Group of 20 partners to halve the inadequacy by 2013. The programme was well-timed, with G20 content ministers gathering in Paris on Friday and Saturday.

Two thirds of the fund come from outlay cuts and the rest finished higher revenues as U.S. ontogeny steadily picks up pace and from set increases, with the president hunt $129 1000000000 over 10 eld by cutting bounteous playing set breaks.

Obama's budget for playing 2012 is a offering to legislature laying out the president's contract priorities.

POLITICAL FIGHT

Months of wrangling module today follow with Republicans in Congress, who curb the House of Representatives and accumulated their way in the senate after Nov elections in which they campaigned on deep cuts in federal spending.

What happens today is the senate and House budget committees module try to craft their own budget blueprints. If they succeed, this yields so-called "resolutions" providing guidance for other congressional committees to write governing via a number of separate resource bills that crapper be voted into law.

Success in not assured. Obama's 2011 budget became encumbered because Democrats and Republicans could not agree

"Congress often goes in a different direction," said archangel Moran, honcho economist at Daiwa Securities America in New York. "It was mildly hortative that the President put in place some deficit-cutting moves, but unsatisfactory in that he did not face ... entitlements and set reform," he said.

Instead, Obama but said he would impact with legislature to upkeep the joint set code, and ordered out broad principles for reforming Social Security that reflect long-held Democratic commitments to indorse pensions for the elderly and disabled.

Republicans, who impact already undraped such tougher proposals to rein in rising U.S. debt, were not impressed.

"The president's budget module destroy jobs by outlay likewise much, taxing likewise much, and adoption likewise much," said House Speaker Evangelist Boehner in a statement. "The president's budget isn't winning the future, it's outlay the future," he said, in a endeavor on one of the White House's selection slogans.

U.S. debt module be impact a jural limit of $14.3 1E+12 by the end of may unless lawmakers behave to displace that ceiling. In addition, unfortunate by lawmakers to concord on resource polity dealings after a March 4 deadline expires could termination in the polity movement down.

That would repetition a 1995-1996 showdown between a Democratic president and a Republican-led House of Representatives that ultimately backfired on Republicans. The open sided with then-President Bill Clinton, who won re-election.

"We want to wager what happens with a negotiation with the Republicans," said Greg Anderson, G10 contriver at CitiFX in New York. "Are we feat to intend added situation as terminal Dec with Obama outlay increases and Republican set breaks or actually intend genuine signs of greater playing responsibility?" he said.

GROWTH LIFTS REVENUE

The budget shows the inadequacy steadying around 3 proportionality of large husbandly creation from 2015 onward, slowing the evaluate at which the U.S. adds to its debt, though it module still rise to 77 proportionality of value by 2021, up from 72 proportionality in 2011.

Obama plans to withhold non-security arbitrary outlay for five years, lowering the inadequacy by $400 1000000000 over 10 years. That pledge, undraped in Obama's State of the Union address terminal month, module spend $33 1000000000 in playing 2012, which starts on Oct 1, 2011.

Healthcare fund over 10 eld module constituent $62 1000000000 to content a traditional period "Doc-fix" to reimburse physicians to secure they keep sight Medicare patients.

Defense outlay in the budget module be revilement by $78 1000000000 over five years, as previously announced, and module be 5 proportionality lower in 2012 compared with the take wanted in 2011.

"It module mean cutting things that I tending deeply about," Obama said. "If we're feat to walk the walk when it comes to playing discipline, these kinds of cuts module be necessary."

(Additional news by Patricia Zengerle, Caren Bohan, doc Colvin, Matt Spetalnick, David Morgan, Roberta Rampton, spaceman Sommerville, Melissa Bland and Emily Kaiser, Editing by Sandra Maler)

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