Obama sets out budget priorities

Senior administration officials say Mr Obama is likely to highlight two key issues – healthcare reform and climate change. The budget is likely to set aside funds in these areas in addition to items in last week's $787bn (€614bn, £545bn) fiscal stimulus.

But the president will also use this week to make clear his commitment to improving the long-term state of US public finances, in particular by tackling rising healthcare spending.

Mr Obama pledged that his administration would do “all we can to get exploding deficits under control as our economy begins to recover” in his weekly address to the nation on Saturday.

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