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- NATION, Page 26The Blame Game Begins
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- Reagan's last budget presages a flap over Bush's first
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- Like all those that preceded it, the final budget that
- President Reagan will unveil this week asks Congress for more
- spending than revenue. Reagan will nevertheless hail it as a
- blow against government profligacy, and in the looking-glass
- world of federal budgetmaking, he will have a point.
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- The $1.2 trillion spending plan for fiscal 1990 predicts a
- deficit of $93 billion, a smaller overdraft than those Reagan
- requested and got in earlier years, when he blamed Democrats for
- the deficit. It calls for a $4 billion hike in defense spending,
- $10 billion cuts in programs that mainly benefit the middle
- class and a $4 billion jump in Government efforts to assist the
- poor. There are some wildly optimistic assumptions, such as the
- forecast that over the next year interest rates will fall a
- whopping 2.7 percentage points.
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- Not that the details matter much. At best the seven-volume,
- 3,000-page document will serve as a starting point in an
- elaborate budgetary blame game pitting Reagan's successor,
- George Bush, against his rivals in the Democratic-controlled
- Congress. Each side is intent on holding the other responsible
- for the painful and unpopular combination of program cuts and
- new revenues that will be needed to reduce the projected
- deficit of $127 billion to the $100 billion mandated under the
- Gramm-Rudman deficit-reduction law. In a ritual game of
- budgetary chicken, neither side wants to offer the first
- specific ideas for cuts. Says a senior Bush transition
- official: "Cutting people's pet programs is a terribly negative
- way to start your Administration. We plan to postpone that as
- long as possible and let Congress clean up its own mess."
- Democratic leaders of Congress retort that Bush promised to
- balance the budget without new taxes or restraint on Social
- Security. Says Senate Democratic leader George Mitchell: "It
- is protocol, it is tradition, and it is correct for the
- President to set forth his budget goals first and for the
- Congress to act."
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- Bush promised last week to reveal ideas for reducing the
- deficit at a special joint session of Congress shortly after his
- Inauguration. He has also asked House and Senate leaders to join
- him in early budget talks. Bush's designated budget director,
- Richard Darman, has discussed with Republican leaders the idea
- of dividing the budget into five to 20 categories, such as
- "national security" and "health care," and putting an overall
- spending limit on each. Added together, the reductions would
- slice the deficit to $100 billion. It would be up to Congress to
- fill in the blanks by deciding which programs in each category
- would have to be slashed to meet the overall target.
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- This draft plan would, according to a Republican insider,
- "let Bush stake out the high ground on the deficit issue," and
- at low political cost. The new President could claim to have
- fulfilled his campaign pledge to meet the deficit-cutting
- targets without new taxes, but avoid the need to identify
- specific programs for the budget ax. That is precisely why key
- Democrats like Mitchell and House Budget Committee Chairman
- Leon Panetta dismiss the vague outline as a political ploy.
- Last week even some Republican officials urged Darman and Bush
- to go a half-step further and list "broad proposals" to reform
- Medicare and farm subsidies. But like any smart cardplayer,
- Bush has no intention of showing his hand.
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