Obama Sends Congress $3.8 Trillion Budget, Soaring Deficits Projected

The fiscal year 2011 budget, sent to Congress Monday, includes new jobs-creation programs and additional funding for the wars in Iraq and Afghanistan, but is projected to add nearly $1.3 trillion in deficit spending on top of the current year's projected $1.6 trillion deficit. As he unveiled the budget, Obama warned the federal government to stop treating taxpayer dollars like "Monopoly money." But Republicans questioned whether Obama was doing enough to follow his own advice. 

Sen. Judd Gregg, R-N.H., ranking Republican on the Senate Budget Committee, said the White House is not going far enough in tackling the debt crisis.  

"We've got some pretty big problems here. We need some pretty big solutions," Gregg told Fox News. "This is fiscal insanity -- to continue to grow the government the way we're growing it, to continue to spend the way we're spending. ... We're going to pass onto our kids a country that basically is insolvent." 

Senate Minority Leader Mitch McConnell said the administration shows "no sign of slowing spending." 

"The president proposes to increase spending by another $100 billion -- despite having already increased the size of the federal government to unprecedented levels," McConnell said. 

According to the plan, the 2011 deficit of $1.267 trillion would fund nearly the entirety of the year's discretionary spending, which is $1.415 trillion or 37 percent of the government's total outlays. Mandatory spending on items such as entitlements and interest payments make up the rest.