WASHINGTON- President Barack Obama on Wednesday will propose tax reform, defense savings and changes in government healthcare spending as criticism swells over his leadership on curbing a bloated budget deficit.

Related readings: WH says Obama regrets vote on debt limit  Obama to lay out spending plan

Obama, accused of laying low on an issue polls show will be a major factor in the 2012 presidential election, will explain his vision for tackling the long-term US deficit and debt in a speech in Washington at 1:35 pm.

"The president will lay out four steps to achieve this balanced approach," a White House official said, citing defense budget savings, waste from healthcare, domestic spending control, and "tax reform that reduces spending in our tax code"- a reference to closing tax loopholes.

Obama will try to use the speech to regain control of the spending debate by drawing a sharp contrast with a Republican proposal unveiled last week to lower the deficit by $4.4 trillion over the next 10 years.

That proposal calls for steep cuts in spending and lower taxes for businesses and individuals.

"This is an opportunity to use the bully pulpit to frame the choice rather than let the debate run away from them," said Chris Van Hollen, the top Democrat on the House of Representatives' Budget Committee.

The White House, which also wants Congress to raise the country's borrowing limit before a $14.3 trillion debt ceiling is reached as early as mid-May, says the Republican deficit plan unfairly favors the rich over ordinary Americans.

"What is not acceptable ... is a plan that achieves serious deficit reduction only by asking for sacrifice from the middle class ... while providing substantial tax cuts to the very well-off," White House press secretary Jay Carney said on Tuesday.

The International Monetary Fund urged the United States on Tuesday to outline credible measures to reduce deficits.

Obama's budget proposal for next year already includes allowing Bush-era tax cuts to expire for American families making more than $250,000 a year.

He reluctantly agreed to extend those tax breaks for two years in a compromise with Republicans in December to preserve tax cuts for less well-off families, as well as jobless aid and other benefits that he favored.

But Republican House Speaker John Boehner said in a statement on Tuesday that "tax increases are unacceptable and a nonstarter. We don't have deficits because Americans are taxed too little, we have deficits because Washington spends too much."