White House budget chief says deficit manageable

CHICAGO (Reuters) - White House budget director Jim Nussle said on Monday that a sluggish U.S. economy and a proposed $145 billion fiscal stimulus plan would inflate the deficit, but not permanently.

"We believe that this uptick is temporary, and is also a manageable budget deficit if we keep taxes low, if we can keep the economy growing, and if we can keep spending in check," he said at a news conference.

Earlier on Monday, President George W. Bush unveiled a $3.1 trillion spending plan for fiscal 2009 and forecast the U.S. budget deficit would more than double this year.

(Editing by James Dalgleish)