Military

DATE=08/29/01

TYPE=CORRESPONDENT REPORT

NUMBER=2-279834

TITLE=BUSH BUDGET (L ONLY)

BYLINE=SCOTT STEARNS

DATELINE=WHITE HOUSE

CONTENT:

VOICED AT:

INTRO: President Bush wants more money for defense despite figures that show he may have to borrow from government retirement accounts to balance this year's budget. VOA's Scott Stearns reports, Mr. Bush says he will not back down from asking Congress for 18-billion dollars more for the military.

TEXT: The President told a group of veterans that his budget makes defense a top priority that must be met regardless of a shrinking government surplus.

/// BUSH ACT ///

This budget I submitted to Congress makes national defense a priority. I have asked Congress to provide the largest increase in military spending since Ronald Reagan was the President and Commander in Chief of the United States.

/// END ACT ///

The non-partisan Congressional Budget Office says the President will have to borrow nine-billion dollars from the Social Security trust fund to meet government spending. The report says a record budget surplus has fallen 45 percent in the last four months as a result of a sluggish economy and the President's one-point-three trillion dollar tax cut.

Mr. Bush says that tax cut is not dragging the economy down. Instead, he says more money in the pockets of American consumers will help spark an economic turnaround as official figures show the country's Gross Domestic Product or G-D-P hit an eight-year low of 0.2 percent in the second quarter.

/// SECOND BUSH ACT///

Our economy began slowing down last year and that's bad news, and I'm deeply worried about the working families all across the country. According to today's GDP figures, the recovery is very slow in coming. But with tax reduction already in place, Americans will have more of their own money to spend, to save, and invest.

/// END ACT ///

Democrats say Mr. Bush wasted record surpluses for the political gain of tax cuts. Democrat Kent Conrad (of North Dakota) is chairman of the Senate Budget Committee. He says President Bush will not get 18-billion dollars more for defense because the money would have to come from a surplus balance in health care. Senator Conrad says Republicans have only themselves to blame for the shortfall.

/// CONRAD ACT ///

This is their spending plan. This is their tax plan. These are their budget deficits. And we can now see that they will be raiding the Medicare and Social Security trust funds of over 500-billion dollars over the 11 year period. That is a serious mistake. It has serious consequences.

/// END ACT ///

Democrats do not want to look weak on defense when Congress reconvenes next week. They may try to trim money for missile defense from the military request while keeping funds for hardware and training.

(SIGNED)

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