The House and Senate passed competing budgets in March.
The most immediate result would clear the way for action this summer on annual spending bills totaling $1.1 trillion for the budget year that begins Oct. 1.
That figure includes $145 billion in sure-to-be-contested money for military operations in Iraq and Afghanistan.
A $23 billion increase for domestic agency budgets awards sizable increases for education, veterans, and healthcare programs.
The White House opposes the increase and has promised Bush will veto annual spending bills that break the president's budget for such programs.
His spending plan essentially would freeze them.
After a $214 billion deficit for the current budget year, the deficit would rise to $252 billion for 2008 but fall to $235 billion the next year, according to the Democrats' plan.
But by 2012, the Democratic budget promises a $41 billion surplus.
It does so by assuming taxes on income, dividends, and stock sales go up in 2011 instead of being extended, as Republicans and Bush call for.
Republicans credit the tax cuts, passed in 2001 and 2003, with reviving the economy.
Most Democrats say the cuts favor wealthier people.
Tax cuts aimed at the middle class could be renewed under the compromise.
That includes establishing a 10 percent rate on the first $12,000 of a couple's income, as well as relief for married couples, people with children, and people who inherit large estates.
Extending the middle-class tax cuts would cost about $180 billion over 2011-12; extending the rest of the 2001 and 2003 tax bills would cost about $240 billion over the same period.
The Democratic plan would restore a "pay-as-you-go" rule that requires tax cuts or spending increases in benefits programs such as Medicare, children's healthcare, or farm subsidies to be financed by spending cuts or tax increases elsewhere.
The idea is not to worsen the deficit.
The budget plan, while nonbinding, sets goals for later tax and spending bills.
It makes a statement about the priorities of majority Democrats and provides an early test for the party to prove it can govern.
