The U.S. president, George Bush has presented a $2.9 trillion budget to congress setting the stage for a confrontation with democrats. Keeping domestic spending restrained George Bush ambitiously plans to balance the budget in five years without raising taxes while increasing funds for the Iraq war and military expansion. The proposed budget has made greater means-testing for middle class benefits what could be translated as the central part to concentrate on entitlement reform. As expected, the present budget seeks to squeeze spending on health-care, education housing, and few other domestic programs. The budget in the present form would reduce the rapid growth of Medicare and Medicaid as it plans to trim $101 billion from two programs over the next five years. The budget seeks to reduce payments to healthcare providers and compelling wealthy recipients to pay more on their healthcare. However, it would provide additional funds for Children’s Health Insurance Program. But the fund allocated for the purpose will not be enough to maintain the same enrollment over the next five years. As a better fact, the latest budget plans focuses on crucial means-testing as a strategy to trigger social security reform. Now the message seems to be clear enough that the shift in policy may be extended for all entitlements. On the other hand, the change in policy will now bring wealthy people in the spot to shoulder economic burden and they will be made paying more for middle class benefit. The latest budget proposal has allocated a huge sum to boost spending for the war and overall defense and diplomatic spending in the next fiscal year. The budget plan has assigned $623 billion for the military next year, including $141 billion for the outstretching wars in Iraq and Afghanistan. In addition to it, there will be provision for a $50 billion down payment on the president’s plan to inflate the size of the military by 92,000 over the next five years. Therefore, the budget also outlines the priorities of the president for his final two years in the office. Some democrats raised their doubts on the presidents plan to balance the budget by the year 2012. The plan envisages an economic assumption to convert the nation’s $248 billion deficit into a $61 billion surplus by 2012. Moreover, even if the plan meets success George Bush would only be re-establishing the country’s fiscal condition to the surplus that he inherited while coming into office in 2001.