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The President is proposing a $48 billion increase in defense spending, raising the Department of Defense’s budget to $379 billion. The President is proposing nearly a doubling of the budget for national preparedness, to $38 billion. It’s anticipated that other nondefense/preparedness discretionary programs will see slower growth or even cuts. CBO and Administration projections indicate a budget deficit for the next two years, followed by surpluses in the outyears that are much smaller than previously expected. This year’s deficit of $21 billion represents a change of more than $300 billion from last January’s projection. Most of the reduction results from a weak economy, CBO says. Long term budget claims remain, including aging population and health care costs further reduce fiscal flexibility in the future.