I believe our DOD discretionary spending is down with most of our new defense spending being done accross all of the departments as part of Homeland defense. Before Homeland Defense, the presidnet's discretionary budget was flat relative to GDP. Since HD, the discretionary department budgets have received on average, a +4% increase over GDP over the last two budget years.
Of course, at the discretion of the current congress and president, the future nondiscretionary spending problem will be this new Prescription Drug benifit. But that's a different subject, aye?