During an appearance at George Washington University, the businessman said by focusing on enhancing young talent and fighting poverty, the new U.S. administration could make significant strides forward, a Bill & Melinda Gates Foundation release said.

"Long-term strategic interests do not disappear in an economic downturn," Gates said. "Developing the talent of our young people, addressing poverty, preventing disease is always smart, no matter what the budget outlook."

Gates said government budget cuts should focus on all unneeded spending and not include cuts to the country's educational sector.

"Today's down economy doesn't mean education will be less important for the future, so a down economy doesn't mean we should cut back on education," the billionaire said.

Gates also backed Obama's proposal to offer $50 billion in foreign assistance by 2012.

"It will make a phenomenal statement about the kind of partner America plans to be in the world," he said. "Of course, the point isn't only to enhance America's reputation in the world -- that's a byproduct. The point is to improve lives."