(Reuters) - President George W. Bush will unveil a budget of more than $3 trillion on Monday for fiscal year 2009 that begins on October 1. The proposal will be sent to the Democratic-led Congress, likely setting the stage for a fresh round of sparring over spending priorities.
Here is what Bush’s budget is expected to show:
* The White House will forecast deficits of about $400 billion in fiscal 2008 and 2009, according to a U.S. official who spoke on condition of anonymity. A deficit in that range is equivalent to about 2.8 percent U.S. gross domestic product.
* A $400 billion deficit would be more than twice the $163 billion shortfall recorded in 2007 and would approach the $413 billion gap of 2004, which was an all-time high in dollar terms.
* The administration says its goal of a budget surplus by 2012 is still achievable while making Bush’s 2001 and 2003 tax cuts permanent.
* Bush will propose nearly freezing spending on discretionary programs outside of national security in fiscal 2009.
* The budget would curb spending on federal health entitlements by $208 billion over five years. That includes $178 billion in costs savings from the Medicare health program for the elderly and disabled.
* The administration proposes to spend billions to beef up border security, including $775 million to build more border fences, $440 million to hire and train more border patrol agents and $3 billion for other enforcement activities.
* The administration is expected to request $515 billion for the military for the next fiscal year, not including funds for the Iraq and Afghanistan wars.
* Bush will request $70 billion for the Iraq and Afghanistan conflict. That money would be expected to cover only the first few months of fiscal 2009 and Bush will seek more money for Iraq later. Bush’s war funding request for fiscal 2008 totaled $193 billion but Congress has only approved part of that money so far.
* The defense budget request will include $183.8 billion to modernize the military and $20.5 billion to increase the size of the Army and Marine Corps — the two services most strained by wars in Iraq and Afghanistan.
Reporting by Caren Bohan; Editing by Patricia Wilson and Bill Trott