President Barack Obama's fiscal 2014 budget released Wednesday sees US economic growth picking up to 3.2 percent next year from 2.3 percent this year.
The $3.77 trillion proposed budget also assumes that unemployment will average 7.2 percent next year, down from the current 7.6 percent.
The budget for the fiscal year beginning October 1 foresees the US deficit falling to $744 billion, compared to a projected shortfall of $973 billion in the current year.
That would bring the country's deficit down to 4.4 percent of gross domestic product from 6.0 percent this year.
Government spending was projected to rise just 2.5 percent in 2014 -- slightly more than the projected inflation rate of 2.2 percent -- as pressure remains on the White House to curtail spending.
Nevertheless, Republicans in Congress are expected to reject the proposal and push for more cuts in disbursements.
"We don't view this budget as a starting point. This is an offer where the president came more than half way towards the Republicans in an attempt to get a fiscal deal," said a senior White House official.