The administration in its budget documents said the deficit for this year will soar to an all-time high of $423 billion, reflecting increased outlays for the Iraq war and hurricane relief.
But the administration says the deficits will be on a declining path over the next five years, which would allow the president to achieve his goal of cutting the deficit in half by 2009, the year he leaves office. However, the deficit of $354 billion that the administration is projecting for 2007 probably will be higher because the budget at present only contains $50 billion in spending for Iraq, White House Budget Director Joshua Bolten told reporters.
Bush is also seeking savings by trimming the growth of spending in Medicare, the government's giant health care program for the elderly and disabled, by $35.9 billion over five years. The reductions, which are certain to face stiff opposition in Congress, would among other things reduce inflation adjustments for hospitals, nursing homes, home health care providers and hospices. "These are not cuts," Bolten said of Bush's Medicare plans. "These are modest reductions in the rate of growth."Democrats attacked what they said were Bush's skewed priorities. They said he was trying to impose austere budgets that will harm programs for the poor while protecting tax cuts Democrats said were going primarily to the wealthy.
http://www.cnn.com/2006/POLITICS/02/06/budget.ap/index.html