Top Story USA

5 February 2007

Bush Prepares New Budget

In his upcoming budget US President Bush will ask Congress for a $2.9 trillion spending that seeks billions of dollars more to fight the Iraq war and tries to contain the spiraling cost of the government's big health care programmes.

In his weekly radio address, Bush said, “Cutting the deficit during a time of war requires us to restrain spending in other areas."

Previewing the fiscal year 2008 budget he will unveil today to a Democartic held congress for the first time, Bush also said it would show that his goal of ending the deficit by 2012 could be accomplished while making his tax cuts permanent.

“Congress needs to make this tax relief permanent, so we can keep America's economy growing. Pro-growth economic policies also play a vital role in our plan to balance the federal budget," he said.

"Our growing economy has produced record levels of tax revenue. This increase in tax revenue has helped us cut the deficit in half three years ahead of schedule," he added. "On Monday, we will take the next step when I submit to Congress a budget that will eliminate the deficit by 2012."
This is the first year Bush will submit his budget to a Democratic-controlled Congress.

President George Bush will ask Congress for US$99.7 billion (NZ$146bn) for the Iraq and Afghanistan wars for the rest of fiscal year 2007 and more than US$145 billion for fiscal year 2008, according to a Bush administration official.