CBO Sees ’89 Deficit $35 Billion Higher Than Reagan Figure
President Reagan’s fiscal 1989 budget would leave a federal deficit of $165 billion, $35 billion higher than the White House says, the Congressional Budget Office reported today.
Most of the difference results from the Administration’s more optimistic view of the economy, James Blum, acting director of the nonpartisan agency, told the Senate Appropriations Committee.
The CBO projection provoked Sen. Ted Stevens (R-Alaska) to express frustration over the differences between it and Administration forecasts.
“Why haven’t you gotten together with (the Office of Management and Budget)?,” he asked.
Blum noted that over the years, White House economic forecasts have been more rosy than those coming from CBO, and said choosing between them is “a political judgment call” Congress must make.
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