President Barack Obama has proposed a 1.26% reduction in his budget for 2012 compared with 2011, according to his fiscal year 2012 budget.

The $72 billion drop comes as part of a $3.771 trillion budget in 2012, compared with the $3.819 trillion budget in 2011.

Meanwhile total receipts - which come mostly from taxes - are expected to rise.

Total receipts will be $2.609 trillion in 2012, up $435 billion compared with $2.174 trillion in 2011.