Obama 2016 budget proposes 7 percent spending increase over caps

WASHINGTON (Reuters) - President Barack Obama's fiscal 2016 budget proposes a roughly 7 percent increase in spending over mandatory levels set in spending caps known as "sequestration," a White House official said on Thursday. The budget proposes $530 billion in non-defense discretionary spending, which is $37 billion above the caps, and $561 billion in defense outlays, which is $38 billion above the limits, the official said. (Reporting by Jeff Mason; Editing by Susan Heavey)