US President Barack Obama has announced a USD 3.8 T 2011 budget plan which includes increased spending for job schemes, but cuts in other areas.

He also forecast the US deficit would rise to a record USD 1.56 T this year.

He scrapped plans to send astronauts back to the Moon, and will seek to save USD 250 B by capping a range of domestic programmes for three years, the BBC reported.

Congress must approve the budget for the financial year that starts on 1 October for it to take effect.

Obama urged lawmakers to follow his lead on reducing "waste in programmes I care about". He added: "We cannot continue to spend as if deficits do not matter."

Obama cancelled the Constellation programme launched by his predecessor, George W Bush, that envisaged putting astronauts on the Moon's surface by 2020.

In his federal budget request, Obama described the project as "over budget, behind schedule, and lacking in innovation", adding that it was draining resources from other Nasa activities.

Under Obama's budget plans, Nasa would get funding to encourage private companies to build, launch and operate their own spacecraft, which could be used to carry astronauts to the International Space Station.

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