Monday, February 04, 2008

Some Highlights of the President's Budget

From the Associated Press. Click the link to read the whole article...

President Bush is sending Congress a $3 trillion spending blueprint that would provide a big boost to defense and protect his signature tax cuts.

It seeks sizable savings in government health care programs and puts the squeeze on much of the rest of government, but it would still generate near-record budget deficits over the next two years.
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His blueprint for the budget year that begins next October projects huge deficits, around $400 billion for this year and next, more than double the 2007 deficit of $163 billion. Private economists believe the deficit could easily surpass the previous record in dollar terms of $413 billion set in 2004, especially if the country does go into a recession.
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As in past years, Bush's biggest proposed increases are in national security. Defense spending is projected to rise by about 7 percent, to $515 billion, and homeland security money by almost 11 percent, with a big gain for border security.

Bush's spending proposal would achieve sizable savings by slowing the growth in the major health programs - Medicare for retirees and Medicaid for the poor. There the president will be asking for almost $200 billion in cuts over five years, about three times the savings he proposed last year. The savings would come from freezing payments for hospitals and other health care providers.

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