US President Barack Obama proposed on Thursday his administration's budget plan, including an astonishing $1.75 trillion federal deficit, which analysts predict could only be achieved if the US economy recovered as expected.

The deficit, which is nearly four times higher than in any point in US history and larger than previously estimations, will add more pressure to the balance sheets as the US government attempts to battle recession.

President Obama said the increase in the deficit was a result of a "deep and destructive" recession and recent efforts to bail out the problematic economy, including the Wall Street bailout plan and the newly endorsed $787 billion stimulus plan.