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Bush bound to cut costs?
WASHINGTON. Dec 25: President Bush Intends to honour the spending limits of the budget deficit accord when be unveils an economic growth package aimed at stimulating Investment, spokesman Marlin Fitzwater said Wednesday, reports Reuter
There has been an internal debate within the admlnistra tlon about the package, with some insiders contending that Bush should Ignore the re stralnts Imposed by the agreement aimed at narrowing the federal deficit.
‘We have always said that we wanted to do It within the budget agreement and that certainly Is the plan.' said White House spokesman Marlin Fitzwater.
An administration official
said Bush would have to declare an economic emergency In order to waive the spending limits Imposed by the budget pact. The Congressional budget office has already projected the deficit at a record 362 billion dollar.
Many of the options before Bush would be costly but popular with an electorate disgruntled with the sluggish economy, said administration official*.
Fitzwater dismissed calls by some to delay action and wait for the Impact of the one per cent cut In the prime Interest rate by the Federal Reserve Board.
"I think were past that." he said. ‘1 think the conclusion Is that we've got to have some kind of a growth package. The rate cut needs to be
complemented with some economic stimulus as a posl tive Impact that's targeted toward investment.'
Bush, who will Include the economic package In his Jan 28 state of the union address, faces a re-election process that begins in February with balloting in Iowa and New Hampshire for his party's nomination
'It would be political suicide. just before formally declaring (hts candidacy) to declare an economic emergency.' said one admlnistra tlon Insider
Bush, who has not formally announced h1s candidacy even though he has made It clear he Intends to seek a second four year term, will declare his Intentions shortly after the state of the union address.
One administration official acknowledged the political consideration* influencing the package There are partisans in both camps,' he said.
There are some people in the administration who see this (the economic package) in a more partisan way than others,' he said. "But there are also some ... (In Congress) who want to block initiative* for partisan reason*, even if it mean* hurting the economy.'
Fitzwater *ald Bush ‘ha* made some' preliminary decision* on hi* economic P^k-age. but that all were subject to change a* officials draft the overall plan.
The final plan will be reached shortly after Bush return* to the United State* from a 12-day trip to Asia and Australia that concludes Jan 10. Fitzwater said