The document, which lays out the US president's ambitious plans to create universal health insurance and adopt an economy-wide carbon permit trading system by 2012, was heavily panned by Republicans.
The budget would see George W. Bush's tax cuts for the wealthiest expire by 2011 and introduce new tax increases on families earning $250,000 or more to pay for healthcare expansion.
In a sign of partisan battles to come, Mitch McConnell, Republican leader in the Senate, where Mr Obama needs at least 60 out of 100 votes to push bills through, said: “Unfortunately, at this juncture, while the American people are tightening their belts, Washington seems to be taking its belt off.”
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