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Bush wants 96bill { February 26 2003 }

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   http://www.washingtonpost.com/wp-dyn/articles/A3517-2003Feb26.html

http://www.washingtonpost.com/wp-dyn/articles/A3517-2003Feb26.html

Bush Wants Up to $95 Billion to Cover Cost of War-WSJ
Reuters
Wednesday, February 26, 2003; 3:16 AM

NEW YORK (Reuters) - The Bush administration is preparing supplemental spending requests totaling as much as $95 billion for a war with Iraq, the Wall Street Journal reported on Tuesday.

The $95 billion would be to cover a war, its aftermath and new expenses to fight terrorism, officials told the newspaper. The total could be as low as $60 billion because Pentagon budget planners don't know how long a conflict will last, whether U.S. allies will contribute more than token sums and what damage Saddam Hussein might do to his own country to retaliate against conquering forces, the Journal said.

There is talk of splitting the requests into two bills: one for the war and a second for reconstruction, the newspaper said. It added that some White House budget officials are pressing for two or more measures for greater control over spending if the war turns out to be shorter and less expensive than current Pentagon estimates.

Pentagon officials favor a single bill to cover the war and a year of reconstruction, primarily to avoid an interruption in funding at the end of the fiscal year, the newspaper said.

Iraq's oil reserves are second in size only to Saudi Arabia's, and U.S. officials say money from them could be instrumental in rebuilding Iraq and could lower the total cost of the conflict, the Journal reported.

The supplemental requests now being readied assume "zero oil revenue" for the first year, officials told the newspaper. The requests currently don't include most costs associated with a large-scale attack by chemical or biological weapons, the report said.

A senior defense official involved in drawing up the supplemental requests told the newspaper that the Pentagon is pushing for as much spending flexibility as it can get.


© 2003 Reuters


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