A $2,5-trillion 2006 Budget plan proposed on Monday by United States President George Bush will cut many domestic programmes while boosting defence, with a projected deficit of $390-billion.
The proposal, certain to ignite a battle from opposition Democrats, will raise military expenditures by 4,8% to $419,3-billion and add 8% to the budget for homeland security.
At the same time, non-mandatory, non-defence spending will be cut by 1%, Budget documents showed.
About 150 domestic programmes deemed inefficient or unnecessary will be eliminated under the budget plan.
The deficit for the fiscal year starting October 1 will be reduced under the proposal to $390-billion, or 3% of gross domestic product (GDP), from a projected $427-billion (3,5% of GDP) in the current fiscal year.
The deficit will decline to $233-billion, or 1,5% of GDP, by fiscal 2009 under the spending outline that aims to fulfil Bush’s pledge to cut the deficit in half as a percentage of GDP.
The Budget plan sent to Congress is merely a blueprint of White House spending plans. A Budget plan must be approved by Congress, which also will decide on specific funding plans each year.
”The 2006 Budget builds on the progress the president and the Congress achieved in meeting the priorities of the nation during the first [Bush] term,” the document said.
”We are funding efforts to defend the homeland from attack. We are transforming our military and supporting our troops as they fight and win the global war on terror … And we are taking additional action to enforce spending discipline.” — Sapa-AFP