Bush asks skeptical Congress for billions for Iraq

Washington, Feb 6: US President George W Bush asked a skeptical Congress today for more money to pay for the Iraq war, in a 622 billion dollars defense-spending request that exceeded that of any year since the end of World War Two.

Bush's 2.9 trillion dollars federal budget for fiscal 2008 sets the stage for a heated battle with Democrats newly in control of Congress who have vowed aggressive oversight of war spending.

The hefty war cost also comes amid opposition by many Democrats and some Republicans to Bush's decision to send 21,500 more troops to Iraq.

Democrats are likely to jettison many of Bush's proposed curbs in domestic spending, which include finding savings in politically sensitive areas such as children's health care.

''Our priority is to protect the American people. And our priority is to make sure our troops have what it takes to do their jobs. We also have got priorities in national parks, in education, in health care,'' Bush told reporters at a Cabinet meeting.

The budget's unveiling kicks off weeks of hearings on Capitol Hill, where lawmakers will try to produce their own version of the spending blueprint by spring.

''I doubt that Democrats will support this budget, and frankly, I will be surprised if Republicans rally around it either,'' said House of Representatives Budget Committee Chairman John Spratt, Democrat of South Carolina.

The request would boost the Pentagon's regular budget by more than 10 percent to 481 billion dollars. Bush is also seeking 141 billion dollars in military funding to support the Iraq war for the 2008 fiscal year that begins October 1.

The combined request for the war spending and the main defense budget totals 622 billion dollars for next year. That makes it the highest in inflation-adjusted terms in more than 60 years, said Steven Kosiak, a defence expert at the Center for Strategic and Budgetary Assessments.

''This is higher than any level since 1946, when the US was drawing down from World War Two,'' Kosiak said.

Including both military and diplomatic operations, Bush is proposing a total of 245 billion dollars for the Iraq and Afghanistan conflicts between now and late 2008.

The White House warned that even more may be needed. ''As activity on the ground evolves, the administration may adjust the requested amount,'' the budget said.

If Congress approves the war-funding request, the United States will have spent 661.9 billion dollars on combat in Iraq, Afghanistan and related activities, the administration said.

Helping to drive some of the big increase in the Pentagon's main budget were plans announced by Bush later last year -- and supported by many Democrats -- to increase the overall size of the military.

On the domestic side, Bush called for a tight one per cent limit on domestic discretionary spending. He urged that his tax cuts be made permanent and said that could be done while balancing the budget in five years.

Programmes ranging from labor to education and cleaning up the environment would take a cut after accounting for inflation, which is running at around 2.5 per cent.

Some of Bush's proposed savings would come in health care programmes. Bush would squeeze 66 billion dollars over five years in savings from the Medicare health program for the elderly.

Democrats criticized a proposal to tighten eligibility requirements for a children's health program, and questioned Bush's upbeat fiscal outlook.

''The president's budget is filled with debt and deception, disconnected from reality, and continues to move America in the wrong direction,'' said Senate Budget Committee Chairman Kent Conrad, a North Dakota Democrat.

In a proposal that rattled some investors on Wall Street, Bush also suggested cutting subsidies and fees collected by institutions that make college loans. The news caused lender Sallie Mae's stock price to slump nearly nine per cent by midday.

Reuters

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