Budget accord

Press, 5 December 1981, Page 8

Budget accord

NZPA-Reuter Washington Reagan Administration officials and key congressional Republicans reached tentative agreement yesterday on a plan to cut $4 billion more from hundreds of domestic programmes. Officials said the plan would be presented to President Reagan for his review today, but one source quoted the Budget Director, David Stockman, from inside a private meeting as saying the proposal “meets the major challenges” of the Administration’s Budget-cutting proposals. Mr Reagan asked on September 24 for $8.4 billion more in domestic programme cuts — 12 per cent across the board — but later indicated he was willing to accept half that amount. In general, sources said

the draft proposal calls for cuts of 4 per cent in most domestic programmes, including those that already have been subjected to the 12 per cent reduction Mr Reagan sought in September. Benefit programmes such as food stamps and Medicare would be exempt, as would defence, the judiciary, veterans’ medical benefits, law enforcement programmes and general revenue-sharing. Sources also said the issue of how much to spend on foreign aid had not been resolved pending action next week in the House on related legislation. The Republicans intend to attach the plan for the additional cuts in domestic programmes to legislation needed to keep virtually the entire Federal Government going after existing stop-gap legislation expires on December 15.