$135-Billion Budget Deficit Seen in Fiscal ‘88--Up $27 Billion
The projected federal deficit for fiscal 1988 has grown by about $27 billion because of changed economic conditions and no longer meets congressional deficit-reduction goals, the White House said today.
Presidential spokesman Marlin Fitzwater said an internal White House analysis indicates revenue in the fourth quarter of 1986 was below expected levels and federal outlays increased more than expected in the first quarter of 1987.
“Basically . . . the analysis at this point shows that we are not quite on target” with the deficit-reduction requirements of the Gramm-Rudman Act passed by Congress with the support of the Reagan Administration, Fitzwater said.
The analysis indicates the proposed Reagan budget for the fiscal year starting Oct. 1 would produce a $135-billion deficit, instead of the $108-billion target set by Gramm-Rudman.
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