This year's proposed budget has kept discretionary spending in check (increasing slower than the rate of inflation), and raises military spending--just what you'd expect when we're "at war". Though I'm not sure thats quite right, as congress recently passed this big drug benefit program.
Generally, though, we are supposed to swing between surplus and deficit as the tax revenue rises and falls with the business cycle. One of the problems is that when there's a surplus, the dolts in congress are more than willing to find ways to spend it, making the deficit on the 'bad years' even worse.
While Bush didn't explain it terribly well for people who weren't listening for it, he stated the tax cuts are/were necessary to stimulate the economy, and that the debt is a troubling long term problem that needs to be addressed.
