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CNN Saturday Morning News

Bush Proposes Largest Defense Spending Hike in 20 Years

Aired January 26, 2002 - 09:05   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.
MILES O'BRIEN, CNN ANCHOR: The war on terrorism comes at a price. President Bush has proposed the biggest hike in defense spending in 20 years.

CNN's Bob Costantini joins us live from the Pentagon with more on that.

Hello, Bob.

BOB COSTANTINI, CNN CORRESPONDENT: Well, hello, Miles.

We can tell you firsthand that the secretary of defense is very pleased with the budget request from President Bush. And we can tell you that because just a moment ago, the secretary, Secretary Rumsfeld, stuck his head here in the briefing room. He was leading some family members on a tour. And we asked him what he thought of it, and he said he was very pleased with the budget request.

However, of course, the secretary did not want to hang around and talk with us live here at this moment.

Now, in making this budget request, President Bush, as you mentioned, is calling for the biggest increase in defense spending in 20 years, and that hearkens back to the time when Ronald Reagan launched a major military buildup in 1980 -- in the 1980s.

Now, the president outlined his proposals during a speech to the Reserve Officers Association meeting in Washington on Wednesday. He was warmly received, and some of the officers picked up table flags and waved them in time with "Hail to the Chief" anthem as the president walked in.

He won a lot of applause in detailing his 2003 military budget plans. They include spending an additional $48 billion during the fiscal year out of $379 billion total. The fiscal year starts in October. There was a lot of applause also when the president mentioned a pay increase of over 4 percent for the military.

But the bulk of the new money, the over $38 billion, would go to further modernizing equipment.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The tools of modern warfare are effective. They are expensive. But in order to win this war against terror, they are essential. Buying these tools may put a strain on the budget, but we will not cut corners when it comes to the defense of our great land.

(END VIDEO CLIP)

COSTANTINI: Well, the president also spoke of continuing work on missile defense, and as you mentioned, Miles, earlier in the newscast, that a test was done last night, and the Pentagon considers that test to be successful.

He is also calling for another $10 billion in reserve money for unexpected expenses in the ongoing war against terrorism. Already, U.S. advisers are training Filipino military forces to -- in their continuing fight against Abu Sayyaf terrorists. Of course, that group is associated with al Qaeda -- Miles.

O'BRIEN: Bob Costantini at the Pentagon for us this morning, thank you very much, sir.

COSTANTINI: Sure.

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