Bush unveils record $3.1 trillion budget

· Military spending to hit highest level since WWII
· Plans will leave successor with spending headache

Dan Glaister in Los Angeles
Tuesday February 5, 2008
The Guardian

George Bush handed his successor a major fiscal headache yesterday as he delivered the last budget of his eight-year term, a finance bill that hikes military spending, blows out the deficit to near record levels and tops $3tn (£1.5tn) for the first time.

The 2009 budget provides for sharp spending increases on Iraq and protects controversial tax cuts, while freezing much domestic spending and cutting $200bn from healthcare over five years.

The centrepiece of the $3.1tn budget is a rise in military spending to its highest level in real terms since the second world war. "Two key principles guided the development of my budget," Bush said. "Keeping America safe and ensuring our continued prosperity."

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