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Budget. Bush budget sees bigger deficits as economy slows "U.S. President George W. Bush acknowledged 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. The budget makes military spending and the Iraq war its centerpiece, proposing a 7.5 percent increase for the Pentagon to $515 billion. On top of that Bush also sought $70 billion more for the conflicts in ...