The Speaker of the House of Representatives, Republican John Boehner, called it a reflection of "failed policies of the past" and a "collection of rehashes, gimmicks and tax increases" he said would weaken the U.S. economy.  Boehner said Republicans will offer their own budget proposal in coming months.

Gene Sperling, director of the National Economic Council, which advises the president on economic policy, called Mr. Obama's plan balanced.  He said it ensures strong momentum for economic recovery by laying out a framework for medium- and long-term fiscal discipline. 

He challenged Republican lawmakers to come up with a plan that balances spending cuts with new revenue.

"Whether or not you agree with every measure in this budget, there is no question it achieves this type of balance between revenue and spending cuts.  The only question is whether the House Republican budget that will come forward soon will, for the first time, include any semblance of that balance in their budget," Sperling said.

In his remarks, President Obama previewed the battle ahead with congressional Republicans over extending a payroll tax cut for 160 million Americans along with assistance for the unemployed.  He urged lawmakers to support these steps "without ideological side issues."

The co-chairpersons of one of two key deficit reduction committees called Mr. Obama's budget a "serious step forward."  

But former White House Budget Director Alice Rivlin and former Senator Pete Domenici say more needs to be done, including generating more government revenue, overhauling the tax system and dealing with the spiraling costs of major government "entitlement" programs.

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