Bush to limit spending below inflation rate

by on February 4th, 2005


Feb. 4 (Bloomberg) — President George W. Bush is planning to limit increases in discretionary government spending to less than 2.3 percent next year in an effort to show he’s serious about reining in the budget deficit.

Bush’s budget, to be submitted to Congress Feb. 7, will call for a 4 percent increase in defense spending to $419.3 billion, according to draft documents. That figure, which doesn’t reflect the costs of the U.S. military presence in Iraq and Afghanistan, means that other funding would need to be cut to meet the goal of holding spending increases below the average inflation rate expected by the administration for next year.

Etalkinghead Staff