President’s Proposed 2007 Budget will cut Medicare, raise deficit
PresidentBush today will propose a 2007 federal budget of more than $2.7trillion, even while calling for savings in Medicare and other domesticprograms, according to congressional and administration officials withknowledge of the spending plan.
The budget is an increase overthe $2.57 trillion spending plan Bush proposed last year. Much of theincrease will go to defense, homeland security and benefit programsthat grow faster than the economy. The officials who gave details ofthe budget asked not to be named because the plan wasn’t scheduled tobe released until today.
Bush’s plan assumes a budget deficit ofabout $423 billion this year. Much of that is because of the costs ofthe wars in Iraq and Afghanistan and hurricane recovery efforts on theGulf Coast.
The proposed budget calls for:
•Saving $65billion in government benefit programs over five years, including $36billion from Medicare. Much of the Medicare savings would come fromcutting reimbursement rates to hospitals, nursing homes and home healthagencies.
•Reducing the amount of money spent on domesticprograms subject to annual congressional review, not including defenseand homeland security. The defense budget would grow by nearly 5%.
•Eliminating or making major cuts in 141 small programs, for $14.5 billion in savings.
“This is a very tight budget,” said Sen. Judd Gregg, R-N.H. “It emphasizes fiscal discipline.”
Sen.Kent Conrad, D-N.D., disagreed. “Republicans have adopted a positionunder this president that deficits don’t matter,” he said.
|
|