Defense spending _ $268 billion this year _ would be $264 billion next year, and rise gradually to $273 billion in 2002. Total domestic spending would be $281 billion this year and $287 billion in 1998, then rise a bit before dipping back to $289 billion in 2002.

Though the accompanying bipartisan documents are expected to spell out precise spending levels for some of Clinton's domestic priorities, final decisions on how defense and domestic programs will fare will be made by lawmakers and the president in the 13 spending bills they write every year.

Domenici's package also envisions five-year savings of $16 billion from Medicaid, $40 billion from other benefits, plus $15 billion because interest payments on the national debt would be lower than expected.

The measures the budget committees hope to write this week set binding overall figures for tax and spending. Final decisions about details will be made in spending and tax bills later this year.