Bush Unveils U.S. Budget Plans

Bush speaking after a cabinet meeting on the budget on February 5 (epa) February 5, 2007 -- U.S. President George W. Bush today presented his budget plan for the next fiscal year to the opposition Democrat-controlled Congress, proposing more than $700 billion in new military spending.

Much of the military spending would be earmarked for Iraq and Afghanistan.

The proposal would make tax cuts passed during his first term permanent and would cut back spending on health and education programs.

Bush said that his proposed budget "reflects the priorities of our country at this moment," which he said were "fighting terrorism" and keeping the economy strong with low taxes.

The proposed $2.9 trillion budget is expected to undergo close scrutiny in Congress and could be debated for months before lawmakers approve a final spending plan.

The budget is likely to face opposition from the Democrats, now in control of both the House of Representatives and the Senate.

(AP, Reuters)