INSTANT VIEW: Bush budget sees bigger deficits as economy slows

WASHINGTON (Reuters) - U.S. President George W. Bush said on Monday a weaker economy would lead to higher budget deficits, as he unveiled a $3.1 trillion spending plan for fiscal year 2009 that would nearly freeze domestic programs.

Following are some reactions to his budget proposal:

HARRY REID, U.S. SENATE MAJORITY LEADER

President Bush's "cuts to Medicare and Medicaid will only compound the problems facing seniors and millions of other Americans struggling amid ever-rising health care costs. Similarly, the budget fails to address other priorities important to working families, such as the rising costs of college and energy."

MITCH MCCONNELL, U.S. SENATE REPUBLICAN LEADER

"The President proposed pro-growth policies aligned with our long-term economic goals. The best way to ensure lasting health for the U.S. economy is to keep taxes low and spending in check so that U.S. businesses remain competitive and American families have more to invest."

KENT CONRAD, U.S. SENATE BUDGET COMMITTEE CHAIRMAN

"We've seen this script before. The President proposes more of the same failed fiscal policies he has embraced throughout his time in office -- more deficit-financed war spending, more deficit-financed tax cuts tilted to benefit the wealthiest, and more borrowing from foreign nations like China and Japan. The result can only be the same -- a further explosion of debt and the undermining of our nation's economic security."

SEN. JUDD GREGG, SENIOR REPUBLICAN ON THE SENATE BUDGET

COMMITTEE, INTERVIEWED BY REUTERS

"This budget must have been viewed by them more as an academic exercise than a serious exercise because it's not a serious budget."

"The biggest concern I have is there is now built in to the budget as a result of the (Medicare) Part D premium, an $8 trillion structural deficit. Throw on top of that the war costs, which are closing in on a trillion dollars, which aren't being paid for and will have to be borrowed, that'll compound, and the stimulus costs, which will be $200 billion including interest over five years and basically you're creating a perfect storm for the next generation to have to suffer."

NANCY PELOSI, SPEAKER OF THE HOUSE

"The Democratic-led Congress will offer a budget that takes America in a new direction, making critical investments to strengthen our economy and create jobs, helping Americans struggling with the high costs of health care, energy, and groceries, and working to restore fiscal responsibility."

JOHN BOEHNER, HOUSE REPUBLICAN LEADER

"Instead of criticizing the president's budget, congressional Democrats would be well-served to join the president and Republicans in funding our nation's priorities while protecting middle-class families and small businesses from a massive tax hike in 2010. Will Democrats promise taxpayers that they will not reinstate the death tax and the marriage penalty, raise taxes on middle-class families, and increase the tax burden on small businesses and investors?"