The Nation - News from Feb. 20, 1987
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President Reagan’s fiscal 1988 budget exceeds the limits of the Gramm-Rudman budget law by more than $26 billion, the Congressional Budget Office said. Although the White House contended its spending plan met the $108-billion deficit target, it actually would result in $134.4 billion in red ink, the nonpartisan budget agency said. Most of the difference was due to less optimistic predictions for the economy, said CBO Director Rudolph G. Penner. The Administration and CBO also disagreed over the Administration’s prediction for cost savings in Medicare, Medicaid and welfare programs.
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