U.S. deficit of $200 billion?

Press, 31 December 1982, Page 13

U.S. deficit of $200 billion?

NZPA-Reuter Washington

The United States Secretary of Commerce, Mr Malcolm Baldridge, says the Federal Budget deficit may approach SUS2OO billion in the current financial vear.

No part of the Budget, including defence, should be exempt from cost-cutting efforts. Mr Baldridge said. Projections of a $2OO billion deficit were in the right area, he said on the ABC television programme. "Good Morning America." President Reagan's top economic forecaster. Mr Martin Feldstein, said earlier that the deficit in the financial year which will end next September might range from $l5O billion to $2OO billion. But Mr Baldridge was the first Cabinet member to say publicly that the $2OO billion figure was more likely. “I think we must go through that Budget with a fine tooth comb in an effort to reduce the deficit,” he said. Everything, including defence, must be looked at closely, he added. It is widely expected that the new Congress will cut defence spending from levels to be proposed by Mr Reagan in his Budget message to congressmen in late January. Mr Reagan has resisted demands that he cut defence.