January 31, 2001

Projections of federal budget surplus are revised upward once again, to $5.610 trillion over the next decade, prompting renewed debate between Bush administration and Democrats over whether government can afford everything Pres George W Bush promised during campaign in terms of tax cuts and new spending; $2.488 trillion of total projected surplus would come from Social Security system and by agreement of the two parties will be off limits; Democrats concede that bigger surplus estimate will make it easier for Bush to sell his tax cut plan, but insist that size of tax cut should be determined by how much money is available after budgeting for other needs (M)

Amazon.com, faced with sharp downturn in its sales growth, will close two operations centers and lay off 1,300 people, or 15 percent, of its work force; lost $545 million in fourth quarter, compared with loss of $323 million for writing down value of its investments in and acquisitions of Internet companies; sales were $972 million in quarter, up 44 percent; sales in 1999 increased 130 percent from 1998; says its sales for 2001 will be $3.4 billion to $3.5 billion, down from $4 billion it had forecast in October 2000; for all of 2000, sales increased 68 percent to $2.76 billion; photo (Market Place column) (M)

Bush Details Charity Plan President Bush began filling in the details of his plan to direct significantly more federal money to religious groups that provide social services to the needy. PAGE A15

Janice Combs, mother of famous rap star Sean Combs, discusses her son's trial on charges of gun possession and bribery in connection with shooting at New York City nightclub; she claims her son is innocent and predicts that he will be acquitted; photo (M)

Profile of and interview with Mexican author Carlos Fuentes, 73; photo (L)