President Barack Obama outlined his $3.55 trillion federal budget proposal Thursday, saying it will help the administration combat recession and get the sagging economy back into shape.

Comparing the nation to millions of Americans who are feeling the pinch, Obama said the government needs to cut back.

"There are times when you can afford to redecorate your house, and there are times where you have to focus on rebuilding its foundations," he said.

Under the president's budget, $634 billion will be set aside to expand health care for the 47 million uninsured Americans, $75 billion to finance the wars in Iraq and Afghanistan and $750 billion for a second bank rescue, if it will be deemed necessary.

According to some estimates, the budget plan could double the $1 trillion national deficit, but President Obama believes he can reduce that figure by half by the end of his first term.

"We'll save billions of dollars by rolling back tax cuts for the wealthiest and giving a tax cut to 95 percent of working families," he says.

Obama is expected to release the final budget plan in April.