President Has ‘Veto on Mind,’ Speakes Warns

The Reagan Administration said today that there is “a distinct possibility” that budget deficits will exceed $200 billion for the next two years unless Congress curbs federal spending and warned that President Reagan “has veto on his mind” as he anticipates reviewing appropriations bills from Capitol Hill.

White House spokesman Larry Speakes said the House has already approved eight spending bills that could swell the estimated deficit of $172 billion in fiscal 1986 by up to $19 billion.

“Unless Congress toes the line on reducing spending, there is a distinct possibility that we face deficits in excess of $200 billion in 1986,” Speakes said.

Albert R. Brashear, another presidential spokesman, said the same forecast holds true for 1987.

“Congress has imposed upon itself a spending goal, and it is absolutely imperative that they meet this spending goal,” Speakes said.

Last Week’s Package

The budget package approved by Congress last week envisions spending $967.6 billion in the fiscal year beginning Oct. 1. The Senate and House estimate that the plan contains $55.5 billion to $57.4 billion in deficit-reduction recommendations.

Under the plan, deficits are estimated at $172 billion in 1986, $155 billion in 1987 and $112 billion in 1988. The nonpartisan Congressional Budget Office said, however, that the estimated savings for next year would amount only to $39 billion and projected the 1988 deficit at about $162 billion.

“Looking at Congress’ track record on appropriations bills over the last five years, it’s entirely possible that their appropriation bills will force the budget even higher” than is already estimated, Speakes said.

He said that the House has already passed eight of the 13 regular appropriation bills and that the Senate has approved two. “Our estimates are they are $15 billion to $19 billion over budget,” Speakes said.

Speakes said Reagan has done his part by agreeing to a slowdown in the defense buildup. “I can assure you the President will do his part to hold down spending, and if that means veto, he will veto.”