In his weekly radio address, Mr Obama said economic recovery would stall if lawmakers could not agree on spending cuts before a 4 March deadline.

Republicans and Democrats are trying to work out a compromise short-term budget as an interim measure.

The 2012 budget proposes a US$1.1 trillion deficit cut over a decade.

Although Mr Obama is empowered to propose a budget, it is up to the US Congress to pass it into law and then to distribute the funds.

"Next week, Congress will focus on a short-term budget. For the sake of our people and our economy, we cannot allow gridlock to prevail," Mr Obama said in his weekly radio address.

"I urge and expect them to find common ground so we can accelerate, not impede, economic growth," Mr Obama said.

"It won't be easy. There will be plenty of debates and disagreements and neither party will get everything it wants. Both sides will have to compromise," he added.