Budget blues. (Insider Report).(Brief Article)

On February 4th, President Bush submitted to Congress a budget for fiscal 2003. If approved, it would set a new federal spending record of $2.13 trillion, besting fiscal 2002 by some $76 billion.

The budget books came wrapped in a red, white, and blue cover depicting the American flag, underscoring the president's continuing exploitation of patriotic emotion to rally support for what he describes as a wartime spending agenda crucial to battling terrorism abroad and securing the safety of Americans at home. The Pentagon budget would increase by $48 billion to $379 billion, accompanied by authority for the commander in chief to spend an additional $10 billion if deemed necessary to continue the war in Afghanistan and/or engage in other foreign quarrels. Homeland security soaks up another $38 billion, nearly double the amount earmarked for that purpose prior to September 11th.

Spending in areas other than defense and security would jump by "only" 2 percent, compared to 6 percent annual hikes in recent years, yet the consumer price index and other economic indices show inflation running significantly below that figure. Some analysts predict that the increase will climb back toward the 6 percent level once Congress adds its traditional election-year pork.

Big congressional spenders of both parties are unlikely to support many of the relatively few modest spending cuts in Bush's proposal. After all, the administration ...