Budget Deficit Near $7 Billion: Presses for Economy One Deficit Eased
SAN FRANCISCO, Oct. 17 (AP)ÛÓSecretary of the Treasury C. Douglas Dillon today broke the news of a further expected increase in the Federal deficit. This yearÛªs budget, he said, will be ÛÏsomewhat more than $6.75 billionÛ out of balance.</br></br>Dillon said that record harvests ÛÓ requiring huge farm price-support outlaysÛÓand the growing postal deficit have caused the red ink to run deeper than expected.</br></br>But Dillon, in an address before the annual meeting of the American Bankers Association, discounted the possibility that the excess of Federal spending over receipts would in itself cause inflation. He also renewed the Kennedy AdministrationÛªs promise of a balanced budget for fiscal 1963, beginning next July 1.</br></br>Dillon said President Ken nedy has intensified his pres sure on Federal agencies for strictest economy and the postponement of spending and already has produced what he called substantial savings.</br></br>The fiscal 1962 budget sent (o Congress in January by former President Eisenhower showed a 1.5-billion-dollar surplus. Democrats criticized the budget as ÛÏpoliticalÛ and ÛÏunrealistic." The new Admin istration revised it to show a 2-bilIion-dollar deficit.