Bush chides Congress for not passing funding bills

WASHINGTON (Reuters) - President George W. Bush chided the Democratic-led Congress for failing to complete annual spending bills on time and signed a temporary measure on Saturday to keep the government running.

"This legislation was necessary because Congress failed in its most basic responsibility: to pass the spending bills that fund the day-to-day operations of the government," Bush said in his weekly radio address.

The temporary spending measure will keep the federal government running through November 16 after Monday's start of the new fiscal year, giving Democrats and Republicans time to work out budget disagreements.

Bush also signed a measure to increase the U.S. borrowing authority to $9.815 trillion, a White House statement said.

The new debt limit is an $850 billion increase from the previous level and the fifth hike since Bush took office in January 2001. U.S. debt stood at about $5.6 trillion at the start of Bush's presidency.

While Bush criticized Democrats, who took control of Congress in January, for their handling of the federal budget, Democrats have accused Bush of turning a federal surplus he inherited when he took office into a deficit. Democrats also said spending bills were not completed on time when Republicans controlled Congress.

Bush and Democrats have been at loggerheads over the Iraq war and now are clashing over a children's health program.

Congress on Thursday approved legislation to expand the popular children's health-care program and pay for it with higher taxes on tobacco products.

Bush will veto the State Children's Health Insurance Program bill and then the administration hopes to work out differences with Congress afterward, the White House said.

"Congressional leaders have put forward an irresponsible plan that would dramatically expand this program beyond its original intent. And they know I will veto it," Bush said. "But it is good that they kept the program running while they try to work out a more responsible approach."

Democrats had their weekly radio address delivered by 12-year-old Graeme Frost, a participant in the children's health program, who said: "I don't know why President Bush wants to stop kids who really need help from getting CHIP."

Bush also criticized Congress for proposals he said would lead to higher taxes.

"Earlier this year, congressional leaders promised to show that they could be responsible with the people's money," Bush said. "Unfortunately, they seem to have chosen the path of higher spending."

(Additional reporting by Lisa Richwine)