Bush signals more combative tone on spending

Washington, June 21: Signaling he is poised to take a tough line with Democrats over the budget, President George W Bush met with congressional Republicans and renewed a threat to veto spending he considers excessive.

Bush and the Democratic-led Congress, who sparred for several months this year over a funding bill for the Iraq war, are headed for a clash in coming months over measures to fund items from homeland security to education and health care.

Meeting with Republican leaders in the Oval Office yesterday, Bush said the budget that Democrats have been preparing would ''increase spending by a significant amount'' and charged that ultimately would mean higher taxes.

''We don't think that's a good way to keep the economy strong,'' Bush said.

Bush has proposed a 933 billion dollars spending cap for the fiscal year starting on Oct 1 and has said he is willing to use his veto to enforce the limit.

Democrats have sketched out a blueprint for fiscal year 2008 that is 22 billion dollars higher than that. They contend the extra spending would strengthen programs they say have been starved over the last six years, such as health and education and spending on port security and local law enforcement.

Democrats who ousted Republicans from control of Congress in November elections have accused Bush of fiscal irresponsibility for pushing through large tax cuts in 2001 and 2003 that they say have mostly benefited the wealthy.

Bush's fiscal policies have also come under criticism by some conservatives in his own party who were furious that he allowed spending to surge when Republicans led the Congress.

Conservatives have vented frustration that Bush did not veto any spending bills until this year, when he rejected an initial funding bill for the Iraq war that would have imposed timetables for the US troop presence in Iraq.

He has carried out only three vetoes so far, including one on Wednesday rejecting a bill to expand federally funded embryonic stem cell research.

Asked if Bush's use of the veto was about to become more frequent, White House spokesman Tony Snow told reporters: ''It very well may be.'' Bush touted a letter he had received from 147 Republican lawmakers who pledged to back him if he vetoes spending bills.

''They will support me on any veto of a bill that is exceeds the spending limits that we collectively think is necessary for the good of the country,'' Bush said.

Bush's comments on the budget came a day after his budget chief, Rob Portman, announced he was stepping down for family reasons after a year on the job. Bush's pick to replace him, former congressman Jim Nussle, brings a more blunt-spoken style than the genial Portman, who is well-liked among both Republicans and Democrats.

Reuters>