Obama budget forecasts $1.2tn deficit for FY2012

US President Barack Obama’s budget to be released on Monday will project a $US1.3 trillion ($1.21 trillion) deficit in fiscal year 2012, an administration official says.

Obama’s last annual budget before he seeks re-election in November will also project a $US901 trillion deficit for fiscal year 2013, and will frame his campaign trail message of a fair fight for all.

The budget deficit recorded in 2011 was $US1.296 trillion.

The spending plan, details of which were first reported by the Wall Street Journal and Dow Jones Newswires, will also include more than $US350 billion for short-term job creating programs.

The official confirmed that the proposal also includes $US476 billion dollars in infrastructure spending on roads and other transport projects and includes more than $US360 billion in savings from government-run health programs for seniors and the poor.

The budget is likely to mirror a spending plan laid out to avert a government shutdown in September.

AAP