Congress leaders, White House reach deal on 5 pct spending rise in 2002

WASHINGTON (AFX) - Congressional leaders announced an agreement with the White House to raise spending in the 2002 fiscal year beginning Oct 1 by 5 pct, above President George W Bush's proposed 4 pct rise.	    Bush yesterday announced an agreement on a 1.35 trln usd tax cut over eleven years between House of Representatives and Senate Congressional negotiators, included in a non-binding budget outline for next year.	    Republican Senator Pete Domenici, chairman of the Budget Committee, announced after a meeting with Bush at the White House today that a number of moderate Democrats have also agreed to support a compromise over how much to raise spending next year.	    "All the high priority items are being covered," in the compromise 4.998 pct increase in spending, Domenici told reporters after the meeting.	    Domenici highlighted Senate Democrat John Breaux's support for the agreement. Breaux has positioned himself as a lead moderate, seeking a compromise over tax cuts and spending increases.	    The Senate had originally approved an 8 pct spending rise next year in the budget outline, according to White House calculations.	    The House had approved spending close to Bush's original budget proposal.	    The two legislative bodies are expected to vote on the budget outline compromise later this week.	    Although non-binding, the outline provides a benchmark for the specific tax cut and appropriations bills that Congress will take up over coming months.

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