US President George W. Bush sent Congress a US$2.77 trillion
budget on Monday for the fiscal year of 2007, which provides big
increases for defense but squeeze other government programs in an
effort to cut budget deficit.
The spending plan for the fiscal year beginning next Oct. 1
would be up by 2.3 percent from projected spending of US$2.71
trillion this year.
"My administration has focused the nation's resources on our
highest priority - protecting our citizens and our homeland," Bush
said in his budget message.
"Working with Congress, we have given our men and women on the
front lines in the war on terror the funding they need to defeat
the enemy and detect, disrupt and dismantle terrorist plots and
operations," he said.
Under the proposed budget, military spending would rise by 6.9
percent to US$439.3 billion in 2007. That is the biggest spending
increase in the budget. The plan of US$439.3 billion does not
include the costs of fighting wars in Iraq and Afghanistan.
Last week, the administration said it would ask Congress for an
additional US$120 billion to cover fighting for the rest of this
year and the early part of 2007. The administration would seek
another US$18 billion in hurricane relief this year.
The Department of Homeland Security would also see a spending
increase of about 5 percent from this year's funding of US$30.8
billion, not counting emergency spending to recover from last
year's hurricanes in the gulf coast region.
On the other hand, the budget calls for the elimination of
reduction of 141 government programs for a savings of US$14.5
billion.
The spending in Medicare, the government's giant health care
program for the elderly and disabled, would be cut by US$35.9
billion over five years. Similar reductions would be made in a
number of other benefit programs.
Other proposed savings in so-called mandatory spending, which
means the payments are set in law for all who are eligible, include
US$4.99 billion in changes in farm commodity programs, and US$16.7
billion in reforms of the Pension Benefit Guaranty Corp., the
government program that backs private pensions.
Nine of the 15 Cabinet-level agencies would see outright cuts in
their discretionary spending for next year.
Even programs not targeted for elimination are subject to tight
budgets including such previously favored agencies such as the
National Institutes of Health, where spending overall essentially
would be frozen at the current level next year.
Set for higher spending are programs to address soaring energy
costs through development of alternative fuels, rising medical
bills through expanded health savings accounts and global
competition through a new "American Competitiveness Initiative",
unveiled in Bush's State of the Union address.
The initiative would extend an expired business tax break for
research and development, double the government's commitment to
basic scientific research and train more teachers in science and
math.
According to the administration, the budget deficit for this
year will soar to an all-time high of US$423 billion. That reflects
increased spending for the Iraq war and hurricane relief.
The administration says that the 2007 budget would keep the
government on a path to achieve Bush's goal of cutting the federal
deficit in half by 2009.
Congress will spend many months debating Bush's proposals and
the budget lawmakers eventually adopt may differ significantly from
the proposals.
(Xinhua News Agency February 7, 2006)
