U.S. President George W. Bush sent Congress a 2.77 trillion-dollar budget on Monday for the fiscal year of 2007, which provides big increases for defense but squeeze other government programs in an effort to cut budget deficit.

The spending plan for the fiscal year beginning next Oct. 1 would be up by 2.3 percent from projected spending of 2.71 trillion dollars this year.

"My administration has focused the nation's resources on our highest priority - protecting our citizens and our homeland," Bush said in his budget message.

"Working with Congress, we have given our men and women on the front lines in the war on terror the funding they need to defeat the enemy and detect, disrupt and dismantle terrorist plots and operations," he said.

According to the administration, the budget deficit for this year will soar to an all-time high of 423 billion dollars. That surge reflects increased spending for the Iraq war and hurricane relief.

Bush has vowed to cut the deficit in half by 2009.

Source: Xinhua