The U.S. State Department on Wednesday proposed its budget of 47.8 billion U.S. dollars for the fiscal year 2014, a decrease of 6 percent from that of 2012.

"This year, our budget request for the Department of State and USAID totals $47.8 billion, a six percent reduction from FY 2012. These funds are a strategic investment in our core mission of advancing America's national security and economic interests," said Secretary of State John Kerry in the budget report.

"We owe it to the American people to do our part to help solve the fiscal problems that threaten not only our future economic health but also our standing in the global order," he said.

"As such, we have proposed necessary cuts, where it will not adversely affect our national security, and we propose modest increases, where they are necessary to achieve our highest priorities," said the top U.S. diplomat.

Kerry described the budget as striking the balance "between fiscal discipline and sustaining and advancing America's global leadership."

According to the budget proposal, the biggest cuts will go with aids to Iraq and Afghanistan. The U.S. troops completely withdrew from Iraq in 2011, whereas the U.S.-led international forces are scheduled to leave Afghanistan by end of 2014.

Allocation of funds for programs and operations in the East Asia and Pacific region will increase by 7 percent to 1.2 billion dollars, which is believed to be the result of the Obama administration's rebalancing strategy toward Asia.

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