"It is being alleged that the Federal Government is 'cutting' spending. In fact, we are not 'cutting' anything. Defense spending under this budget would rise by 4.3 percent over last year. Other discretionary spending would also rise"

This quote by Craig L. Thomas is attending to the mistaken belief that the Federal Government is "cutting" costs. He is clarifying that this is not the case, and that defense spending would in fact increase by 4.3 percent over last year. He also specifies that other discretionary costs would also rise. This suggests that the Federal Government is not lowering costs, however rather increasing it in certain locations. This could be seen as a positive indication, as it implies that the government is investing in areas that are important to the nation.