Congress and federal spending.

Kiplinger Letter, The, January, 2003

Congress won't slash federal spending, despite the prospect of large budget deficits in years to come, added costs from an Iraq war and billions more in tax cuts in the works.

Washington is focused more on economics than on public finances now. Deficit spending has been upgraded to an economic stimulus tool from its previous status as a policy no-no.

In fiscal 2004...a modest spending rise of 4% for discretionary budget items. Although less than half the 9% hike in 2003, that budget featured huge packages for defense and antiterrorism efforts in the wake of 9/11.

Mostly good news for public contractors fearing big cuts in discretionary spending...a broad category of outlays that generate business in a wide array of sectors: Defense,...

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