Carter to make big Budget cut

Press, 17 January 1979, Page 8

Carter to make big Budget cut

XZPA Washington President Jimmy Carter i said that the deficit in his 11980 Budget which he will i unveil on January 22. will be less than SUS3O billion. In last year's Budget the i projected deficit was S6O bullion. In an interview broadcast jon N.B.C.’s nightly news. Mr Carter said he does not anticipate a recession, as has : been predicted by some private sector analysts as a consequence of his moves to (stem inflation. j “We have been encouraged by the economic news ■of the last three months." (Mr Carter said. “I think our economy is strong enough to.' withstand this very moderate effort against inflation." Mr Carters anti-inflation i programme includes efforts Ito reduce the rate of increase in Federal spending, ■voluntary wage and price ( guidelines, and a policy ofl {higher interest rates, t He said that co-operation' among the Administration,! ( Congress, and the private i sector would be necessary( jfor the effort to succeed? And he said he did not ex-( ■ pect it to be upset by big i (labour pay negotiations com-| : ing up soon, including bar (gaining by the giant Teamsters’ Union. “I can’t think of anything .(more damaging to the econ-; jomy than a sustained Teanii sters strike,” Mr Carter said. I “This is a unique union in (that they can bring our( (economy almost to a halt.” ( He also said that his 1 I promise to America’s North I Atlantic Treaty Organisation, ■ (allies to increase real ' (defence spending will be re-? (fleeted in the Budget. ? ( The United States Con-.: jgress returned to work on <

n Monday fating crucial battles over inflation and a r new strategic arms limitas tion treaty with the Soviet I Union. I "The overriding challenge . this year — the issue that e will influence nearly every - decision — is the economic health of the nation.'* the ti Senate Democratic leader, r. Robert Byrd, of West Vir- - gmia. told a meeting of his > party members just before - the senate convened. i As expected. Senator Bvrd > was re-elected to the leadership post. The new Congress — with Si 77 new members in the 435seat House of Representatives and 20 in the 100- > member Senate —is seen as .more conservative than the last and likely to be more i receptive to Budget-cutting ■ proposals to fight inflation. But old-time liberals are . expected to put up a stiff : fight for the traditional Democratic Party programmes aimed at helping ilthe poor. J Senator Byrd said in his speech that one of the Senate’s duties would be to combine fiscal responsibility with social responsibility. ' The anti-inflation mood in I Congress was also reflected in the opening speeches in the House by Mr 'Thomas O'Neill, the Speaker, and Mr .John Rhodes, the Republican leader. Mr O’Neill urged the House to guard tax dollars I cautiously and combat in- | flation without adding to 'unemployment. Mr Rhodes, in half-serious .comments introducing Mr O’Neill, said he welcomed I the many Democrats elected lon what he called conservative Republican prmIciples.