Washington: US President George W Bush on February 3 presented a $ 2,711 billion Budget for fiscal 2004 giving massive boost to military expenditure and with a record deficit of $ 304 billion for 2003 and $ 307 billion for 2004.

"A recession, and a war (against terrorism) we did not choose have led to the return of deficits," President Bush said in his Budget message, adding, as compared to the overall Federal Budget and the $ 10.5 trillion national economy, "Our Budget gap is small by historical standards."

Bush outlaid $ 390 billion for Defence

Bush's Budget message said "the budget for 2004 meets the challenges posed by three national priorities – winning the war against terrorism, securing the homeland, and generating long-term economic growth."

The Budget for fiscal 2004 (beginning October one, 2003), with an estimated deficit of $ 307 billion for the year, does not take into account the expenditure to be incurred in case of a war against Iraq.

The Defence Budget would bulge 15.3 per cent to $ 379.9 billion dollars, it said again without including the cost of a possible war with Iraq.

The missile defence programme has been allocated a whopping amount of $ 9.1 billion, it said.

It also sets asides a sum of $ 2.3 billion for its allies in the global fight against terrorism, particularly the frontline states like Pakistan and Turkey getting an assistance of $ 200 million, Afghanistan getting $ 150 million and $ 463 million for Colombia.

The Budget for NASA, which lost its space shuttle Columbia has been earmarked at $ 15.5 billion.

PTI