What Red Ink? As Deficits Dip, All Sides Seek More Spending

WASHINGTON (AP) — The government deficit is dropping and the voices in Washington calling for austerity are barely audible.

Republicans want more defense spending. Democrats want more domestic spending. And President Barack Obama wants both.

For the first time since the 2011 Budget Control Act put in place automatic spending cuts, Obama might be in the best bargaining position to move the debate his way. Even with Republicans in charge of Congress.

Obama on Thursday called for a 7 percent boost in government spending. That would nullify the 2011 cuts and increase domestic and defense spending by $74 billion, divided in nearly equal amounts.

While the White House budget that is being release Monday has little chance of winning congressional approval, as a negotiating document, it might not be so easily dismissed.