Budget Office Finds Deficit Target Is Met
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WASHINGTON — There will be no automatic, across-the-board cuts in federal programs in the just-begun fiscal year because the $146-billion deficit target in the Gramm-Rudman law has not been breached, the Reagan Administration told Congress on Friday.
The announcement, which was expected, capped a year of budget work notable for the unusual amount of harmony between the White House and Congress.
Had the automatic cuts been triggered, federal spending for defense and domestic programs would have been slashed by at least $10 billion, a microscopic part of the $1.1-trillion budget that nonetheless would have inflicted political pain on lawmakers.
A letter from the Office of Management and Budget to congressional leaders said the final projection for the 1989 fiscal year deficit is slightly less than $145.5 billion.
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