Friday, February 04, 2005

Deep Cuts, But Plenty of Red Ink

In an effort to reign in repeated record deficits, President Bush will propose the tightest budget of his Presidency on Monday. OMB Director Joshua Bolten says the plan to add private accounts to Social Security would create bigger deficits than the White House first forecast. But the Bush administration doesn't count that as part of it's spending. That looks good on paper, since the White House now expects the private account transition to cost $754 billion over ten years.

Director Bolten says the White House is still on course to cut the deficit in half by 2009. To get there, the President will ask Congress to cut or kill more than 150 goverment programs this year.

The President wants $2.5 trillion for 2006. (Reuters)

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