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Legislators Act Responsibly on Budget

Click to see original imageThere’ve been no easy options in the federal budget battle but the House took the more responsible course in choosing a $765 billion spending level for fiscal 1983. Backed by a coalition of Republicans and conservative Democrats, the measure was passed 2197.06 after a Democraticsponsored plan was defeated 225-202. The House budget resolution now goes to a joint Senate-House conference committee to reconcile differences with the Senate passed $784.3 billion verSIHH. Financial authorities have said economic recovery depends on a confidence – building. deficit-reducing budget. needed to encourage lower interest rates. The deficit figure projected by the House budget writers still is awesome $99.3 billion. But it’s a substantial improvement from the $116 billion deficit in the Senate budget and would keep red ink spending under the ”psychological $100 billion barrier.” The House-passed blueprint provides a 7 percent real increase in defense outlays. opts for the lower deficit over a boost in social program spending, and adds $20 billion in taxes next year without jeopardizing the individual tax cut passed in 1981. House Republican Leader Robert Michel of lllinois said it “moves along a trend line” toward a balanced budget. “And that’s got to be the key for the money markets.” “Now we’re on the way back,” said a haplpy President Reagan. reasury Secretary Donald Regan termed the House vote “a promising turning point.” and Jack Carlson. chief economist with the National Association of Realtors, said it was ”a measured step toward economic recovery.” On the other side of the ledger, Jim Wright of Texas, House Democratic leader. may have articulated a theme of Demo Rhetoric for the fall election campaign when he declared: ”1’m disappointed, of course. I just hope it (the Republican plant doesn’t plunge us into a deeper recession, but I’m afraid it may.” The National Urban League deplored cuts in “entitlement” programs such as Medicaid and food stamps, a theme pressed by foes of the GOP plan. No federal budget (or budget at any government levell can do al things for all people. Hard choices must be made. Today’s economic woes can be traced to past failures of relying on red ink spending instead of operating within our means. at least in peacetime. As with private individuals. when government repeatedly spends more than it receives. it’s in trouble and vulnerable in emergencies. With a major phase of the battle of the 1983 budget now behind them. members of Congress can turn to other vital matters. At the same time they should keep tuned to the fiscal situation and now allow spending to spiral past budget projections as it has done in some years. notably fiscal 1980. To do so would court disaster. Predictions that we’re now on the road toward balancing the budget can only be realized by and united commitrnent by our Washington leaders with the backing of the American people.