Bush unveils $3trillion budget
2008-02-04 19:38
Washington - US President George W Bush proposed a record US$3trillion budget on Monday that would boost military spending by about 7%, slow the growth of social programmes and widen the government deficit.
Administration officials estimated that Bush's last spending plan as president would cut the annual growth rate for Medicare - health insurance for the elderly - to 5% over the next five years from about 7%. Healthcare spending for the poor would also be slowed.
The Pentagon's general budget would rise to $515.4bn, the 11th consecutive year of increase. Separately, Bush is seeking another $70bn for the wars in Iraq and Afghanistan.
Bush said his proposal "understands that our priority is to defend our country" and would keep the US economy growing.
But in an election year, his plan to increase the deficit while limiting social programmes is likely to face stiff resistance in Congress, where opposition Democrats hold majorities in both chambers.
As a lame duck whose term ends next January, Bush's ability to twist arms in Congress - including among members of his own Republican Party concerned about fiscal discipline - appears limited.
His budget, which covers the fiscal year starting October 2008, includes a $150bn package of emergency tax incentives for US consumers and businesses in an effort to fight the risk of a recession. Meanwhile, 151 federal programmes would be cut or ended.
The budget would widen the federal deficit to about $400bn in 2009 after three years in which the gap shrank, the administration says. Bush insists that his goal of a balanced budget by 2012 remains intact.
In a 21st-century break with tradition, it was the first paperless government budget, filed to Congress entirely electronically.
Sapa-dpa
- SAPA