As Democrats take aim at the FY08 budget, the President is defending his spending plan as the way to balance the budget by 2012 without raising taxes. Addressing reporters on Monday, Bush said "our economy is strong because of good policy."

The President also said Congress should do something about earmarks and that he should be granted a line item veto.

In addition, the President answered questions on his Iraq policy, stating that his goal is to "provide enough space so that the Iraqi government can meet certain benchmarks or certain requirements for a unity government to survive and the country to be strong."

Below is the clip of the President's remarks.