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CNN Live Saturday

Bush Calls for More Than $80 Billion Increase in Defense Spending

Aired January 26, 2002 - 12:34   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: President Bush wants to beef up the nation's defenses. In his weekly radio address today, the president called for a major increase in military spending.

CNN's Bob Costantini is live at the Pentagon with the details. Hi there, Bob.

BOB COSTANTINI, CNN CORRESPONDENT: Hello, Fredricka. We happened to come across Defense Secretary Donald Rumsfeld earlier today at the Pentagon, as he was taking some family members on a tour, and he told us, off camera, he was very pleased with what the president is proposing as far as defense spending goes, and it's not an unexpected reaction.

You'd have to go back to the administration of Ronald Reagan, the early days of the Ronald Reagan Administration, when he was launching a defense build-up in Cold War times to find anything comparable to this.

Let's take a look at the numbers. Mr. Bush says he doesn't want to cut corners, and he's calling for a fiscal 2003 military budget of $379 billion. That's a $48 billion increase, he's proposing, a 4.1 percent boost in pay for the men and women in uniform. But the bulk of the increase, some $38 billion would go to further modernizing equipment.

(BEGIN VIDEOTAPE)

COSTANTINI (voice over): Mr. Bush was warmly received Wednesday when he first outlined his plans in a speech to the Reserve Officer Association. Some of them lost their reserve, so to speak, by waving little American flags on the tables in rhythm with "Hail to the Chief."

The president jokingly had to say "at ease" to get the crowd calmed down. It was an audience that wanted to hear about increases in defense spending. The president also spoke of continuing research on missile defense and keeping another $10 billion in reserve for unexpected expenses in the War on Terrorism.

Of course, Mr. Bush will echo those comments in his State of the Union speech, and we got another preview today with his radio address. GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Governments responsibilities begin with the defense of our nation. Our fight against terrorism began in Afghanistan, but it will not end there. America must not rest until every terrorist group of global reach has been found, stopped, and defeated. In this work, our military must have every resource, every weapon needed to achieve full and final victory.

COSTANTINI: The effort has started to expand beyond Afghanistan, with the introduction of U.S. military advisers in the Philippines, training frontline troops there in the fight against Abu Sayyaf, a terrorist group linked to al Qaeda. Overall, Pentagon and White House officials do not expect much resistance on Capitol Hill to the president's proposals.

(END VIDEOTAPE)

COSTANTINI: A year ago in the early days of his administration, Mr. Bush said one of the conditions under which he would accept deficit spending would be in a time of war. Well, with an increase of $48 billion proposed for the military, and another $38 billion just for homeland security, those two combined are going to be one of the major factors that the U.S. is expected to run a deficit in the coming fiscal year -- Fredricka.

WHITFIELD: All right, thanks very much. Bob Costantini, did I get it right that time?

COSTANTINI: Yes.

WHITFIELD: All right, thanks Bob.

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