The biggest chunk of the proposed budget is set aside for cohesion funding, or spending that seeks to narrow the economic gap between different EU states. Another large slice goes to the Common Agricultural Policy, or aid for farmers.
The CAP has historically been a bone of contention among EU member states, with those that don't have a large agrarian sector getting less out of it than those that do. France is among those that oppose cuts to CAP funds.
Many countries in central or eastern Europe also oppose cuts to cohesion funding, which helps pay for big infrastructure projects such as new roads or public transportation links.
The budget also earmarks substantial funds for competitiveness and growth, a major concern as many EU states face record levels of unemployment. Efforts to try to boost growth and job creation are a high priority, but cost a lot of money.
Administration costs and international development aid outside the EU also make up part of the total.