United States President George W Bush in his State of the Union address on Tuesday night set the stage for his re-election campaign asserting that the country's economy is strong and the war against terrorism was successful.

"We have not come all this way -- through tragedy and trial and war -- only to falter and leave our work unfinished," he said.

He said the nation faced 'important challenges and choices'. Bush cautioned Americans that it was wrong to think the danger of terrorist attacks had passed.

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"We have come through recession and terrorist attack and corporate scandals and the uncertainties of war," the president told lawmakers at the opening of a campaign year.

"And because you acted to stimulate our economy with tax relief, this economy is strong and growing stronger."

But Democrats were quick to pounce on Bush noting that 2.3 million jobs have been lost under his presidency, deficits are soaring and casualties are climbing in Iraq.

The budget deficit this year is pegged at $500 billion. And that limited Bush to just offering modest initiatives: a pilot plan to encourage student drug testing in public schools and a job training and placement programme for released prisoners.

He urged major league sports leagues and athletes to end the use of performance-enhancing drugs, to set an example for young people.

"Their use by even a minority of elite athletes sets a dangerous example for the millions of young Americans, encouraging young people to take dangerous risks with their health and safety," Bush said.

He also proposed doubling spending on programmes to promote sexual abstinence among teenagers.

Touching on a politically sensitive issue, Bush said he would support a constitutional amendment banning same-sex marriages if the courts struck down a law saying marriage should be between a man and woman.

"America this evening is a nation called to great responsibilities," the president said. "Our greatest responsibility is the active defence of the American people."

"Twenty-eight months have passed since Sept. 11, 2001 -- over two years without an attack on American soil -- and it is tempting to believe that the danger is behind us. That hope is understandable, comforting and false," he said.

Agencies