U.S. fiscal 2013 federal budget proposal 2012

The U.S. fiscal budget proposal for government operations in fiscal year 2013 (October 2012-September 2013) is submitted by President Barack Obama. The actual budget for fiscal year 2013 has to be authorized by congress before it could take effect.

To spur economic growth and create more jobs, Obama wants to include a number of business oriented provisions, like providing attractive tax incentives to American multinational companies to bring oversees production jobs back to the U.S.

Further, to reduce the ever increasing and almost unsustainable U.S. budget deficit, the government has forced itself under current signed law (Budget Control Act), to mandate caps on spending levels. This means that automatic cuts of $1.2 trillion proceeds over a ten year period.

Obama and his administration are under pressure by Republicans, who control the House of Representatives, to make significant steps forward in reduction efforts of government spending. The decrease in spending is most likely directed at social security, military and health care provisions.