The White House on Monday proposed a $2,77-trillion Budget for the next fiscal year that boosts defence and homeland security spending while trimming many social programmes.
The deficit for fiscal 2007 will be $354-billion.
President George Bush’s Budget for the fiscal year starting October 1 will boost defence spending by 6,9% to $439,3-billion, and increase homeland security spending by 3,3% to $33,1-billion.
Other ”discretionary” spending — those programmes not required for mandatory retirements or health care — will be cut by 0,5% to $398,3-billion.
”The president’s 2007 Budget continues his commitment to fighting and winning the war on terror, protecting the homeland and advancing the cause of freedom across the globe,” the president’s Budget message said.
The Budget deficit figure for the current year was revised up to $423-billion, which will be 3,2% of US gross domestic product (GDP).
Based on the projections in the Budget — which is merely an outline for spending that is subject to congressional authorisation — the deficit will fall to $354-billion (3,2% of GDP) in the 2007 fiscal year, and then to $223-billion in the following year, which will be 1,5% of GDP. — Sapa-AFP