In an election year, it appears to be dead on arrival (Administration touts '07 budget). Not only are the Democrats criticizing the proposal, so are many Republicans. Most of the cuts are unlikely to be actually enacted.
Cuts in Medicare, in addition to the ones already passed are unlikely (New York Health Care Industry Says It Faces $1.2 Billion in Cutbacks Under Bush Plan ). Even the vets are going to get hit (Veterans, lawmaker join to fight plan to raise health care fees). His energy policy is lacking and counter productive to his State of the Union address (Energy gaps seen in Bush's budget). His back door approach to dropping Social Security will be a no go (Bush's Social Security Sleight of Hand). And the long run affects of his tax cuts will leave us in dire straits in the future (Getting Past Budget Blab).
Bush has ignored the fact that many of his cuts have been dropped in the past (Many Proposed Cuts Have Met Limited Success in the Past), and will probably have the same amount of success this time around.
This will all play out soon, and most of it will not ever be introduced to the house floor.