State of the Union: Bush promises to slash 150 programmes

US President George W. Bush begins his State of the Union address as Vice President Dick Cheney applauds. Picture / Reuters

WASHINGTON - United States president George W Bush said that his fiscal 2006 budget would slash or eliminate more than 150 government programmes, and hold spending growth for many other programmes at below the rate of inflation.

Bush, in his State of the Union address, said the spending plan that he will send to Congress on Monday "stays on track to cut the deficit in half by 2009".

"America's prosperity requires restraining the spending appetite of the federal government," Bush said.

He told lawmakers that the budget that he will propose will call for holding the growth of discretionary spending "below inflation".

With the White House projecting inflation at about 2 per cent, government programmes subject to the cap would face the budgetary equivalent of a cut in spending from levels enacted in fiscal 2005. Bush last year proposed a budget totalling $2.4 trillion for fiscal 2005.

The proposed cap would affect only about one-sixth of all federal spending since discretionary spending does not include automatic payments like Social Security and Medicare.

"My budget substantially reduces or eliminates more than 150 government programmes that are not getting results, or duplicate current efforts, or do not fulfil essential priorities. The principle here is clear: a taxpayer dollar must be spent wisely, or not at all," Bush said.

As part of that effort, officials said Bush will propose eliminating operating subsidies for passenger train operator Amtrak.

Bush has promised to halve the federal budget deficit by 2009 from a $521 billion forecast he made in early 2004.

Critics have accused the White House of using an inflated forecast to make it easier for Bush to meet his deficit-reduction targets, a charge the White House denies.

Democrats say Bush's tax cuts, and war spending, have helped drive the deficit to record levels.

Analysts say achieving Bush's goal of cutting the deficit in half was made more difficult with the announcement last week the White House would seek $80 billion in new funding this year for military operations in Iraq and Afghanistan.

The White House acknowledged the funding request would push the fiscal 2005 deficit to a record $427 billion.

Democrats and some Republicans are sceptical Bush can meet his deficit reduction goals.

Overall government spending has increased by 26 per cent between 2001 and 2004, while discretionary spending during the same period has surged 38 per cent, according to an analysis by the conservative Heritage Foundation.

- REUTERS