Obama budget cuts have little deficit impact

* The U.S. budget deficit picture is worsened by the economic recession that has resulted in lower government tax receipts and huge increases in spending to try to stimulate the economy. Until a turnaround occurs, deficits are expected to continue at historically high levels.

* Budget experts believe that the only way to get deficits under control long-term is by making significant reforms to federal retirement and healthcare programs such as Social Security, Medicare and Medicaid.

* The details of Obama's requests come about a week after lawmakers wrapped up work on the very budget the president is now proposing. The Democratic-controlled Congress has passed a nonbinding $3.4 trillion budget plan for next year that embraces many of Obama's priorities.

(Editing by Will Dunham)