CBO Skeptical About Bush Budget Target: Report Sees Inability To End Deficit in '93 BUDGE1
The Bush administration says proudly in Its 1991 budget proposals that it will have eliminated the budget deficit by 1993, but the Congressional Budget Office said yesterday that the presidentÛªs math is off by about $94 billion.</br></br>Using more pessimistic economic assumptions, the CBO, the research arm of Congress, said the Bush administration's proposals for cutting the federal deficit would fall far short of the measures required to balance the budget as is required by law.</br></br>The administration has projected that its proposals will produce a surplus that year, but the CBO said the president's budget uses overly optimistic assumptions about economic growth and interest rates. The CBO said the presidentÛªs proposals would not result in a significant cut in the deficit until fiscal 1995.</br></br>Economic experts increasingly are pointing to the budget deficit, and its seaulting drain on the nationÛªs resources, as a major reason for a variety of economic ills ranging from Bee CBO, 1)7, Cot 1 (n the short term, the CM) said in Its annual analysis of the administrationÛªs proposed budget, the Hush budget cuts were substantial. It said, however, that its own economic assumptions would boost the estimated deficit by $2(> billion in fiscal 1991 alone.</br></br>In addition, the estimates by the CBO excluded the cost of the bailout of the ailing savings and loan industry. The office said that by 1992 the administration would need at least $25 billion to $30 billion more than it has projected to cover net losses involved in rescuing savings and loan institutions.