RENO, Nevada (Reuters) - President Barack Obama said on Monday there was no reason across-the-board budget cuts should occur at the end of this year, saying lawmakers in Congress ought to agree on a balanced plan to avoid the widely feared pinch.

In a speech to veterans, Obama said it was still possible to avert the pending cuts to defense and other areas that stem from a failure to reach a deal to reduce the federal deficit.

"There's no reason that should happen because people in Congress ought to be able to come together and agree on a plan, a balanced approach that reduces the deficit and keeps our military strong. It should be done," he said.

(Reporting By Alister Bull in RENO and Margaret Chadbourn in WASHINGTON; Writing by Laura MacInnis; Editing by Jackie Frank)