Budget chief defends necessity of deficit spending

With Democrats certain to step up the attack on President Bush's tax cut and its contribution to the once-again growing federal debt, Office of Management and Budget Director Mitch Daniels Monday sought to put the best face on the explosion of the deficit, saying it was the smallest post-war deficit run during a recession. And the government today, he noted, has the added burden of waging a war.

Daniels, who briefed reporters at the White House on the fiscal 2003 budget released today, adamantly defended last year's tax cut, suggesting that, if anything, it was too small. He indicated the White House would resist renewed efforts on Capitol Hill to create a "trigger" that could scale back the tax cut if deficits persist.

Bush will take a tough line on maintaining the approximately 2 percent growth he proposed in nondefense, non-homeland security-related discretionary spending, Daniels vowed, indicating the president this year will not hesitate to veto appropriations bills that spend too much.

Meanwhile, Bush hit the road Monday to pitch his proposal for a $48 billion increase in military spending, invoking again the "axis of evil" peril of terrorists and states that support them.

Bush, who spoke at Eglin Air Force Base in Florida, pointed to the need to procure expensive new precision weapons that proved their mettle in Afghanistan, as well as his desire for a pay raise for the military.

Daniels defended Bush's unorthodox request for a $10 billion reserve of emergency spending for military activities, saying the idea was to keep legislators from having to "scramble" to approve money that might be urgently needed to fund action in the field.