Show BUSINESS t STOCK MARKET I I II CONGRESS NEARER TO I ADOPTING BUDGET REFORM When the history of the Nixon years yean in the White House is finally written not too many outstanding domestic policy successes will be cited cUed But ranking high among these may maywell maywell maywell well be the Presidents President's masterful needling of Congress prodding it into acceptance of stricter controls over its whole appropriations process Tightly Held Power For generations Senators and Representatives Representatives' have been so eager to retain and assert their constitutional power of the purse so fearful it might be usurped by the one Chief Executive that they have insisted on a piece by basis Hence they have given little thought to total expenditures approved for any fiscal year and displayed insufficient awareness of the Impact of spiraling costs COlts of expanding programs which seemed modest enough when first authorized Net result of such undisciplined undisciplined undisciplined un un- disciplined practices has hal been to weaken weike not strengthen I Congress Congress' power to control control spending The The snow snowballing effect of such delinquency has been disastrous It has has' led to to huge loge increases Increases' in the are federal debt and to continuance of an untold number of projects and programs not now measuring up to the economic economic and social benefits envisioned when they were fI first t approved Presidential Strategy Faced with enormous Increases In increases in creases in costs costa the President made deep cuts in hi his budget requests to Congress eliminating from them many social programs programs programs-he he considered either too expensive e or of doubtful value In a number of instances the answer of Congress to this paring was to restore deleted funds often to increase them then ITtU White House countered r d these the veto as an an ec economy nomy weapon and by b by impounding or refusing to spend fun funds appropriated to torun torun run nm a number of programs Although seemingly assured of of eventual rel release of many of the impoundments via court action Congress is fuming atthe at atthe atthe the delays is riled too at its inability to override the vetoes Hence lit it has has' been stung into serious consideration of the budget reform it av avoided so assiduously for decades What It Is I. What Congress is now in the midst of prescribing as a remedy for the nations nation's expanding fiscal and ills ills and and as a curb on its own propensity to spend freely and indiscriminately indiscriminately in in- is a complete new budget system The nations nation's fiscal year would be revamped to start on on- on October 1 instead of July 1 as at present Congress itself would clear all an authorization bills for any given fiscal year by March 31 preceding By May 1 Congress would establish spending and revenue targets for fer the she coming fiscal year in total and for each major aJor government program area Money bills bins over and beyond these primary targets would not be sent to the President when passed They would be held back for inclusion in a wrap-up wrap spending bill slated to be acted on no later than August 1 1 After that Congress would have have In in September September one one final chance to rase raise or lower spending ceilings Timing and Impact It looks now as though Congress will enact such a budget r reform form bill bin by spring following fairly closely the calendar cited above and including including including in in- also powerful Senate and House budget committees that will wilt supervise a new congressional budget office But it will than take several months to prepare for the changeover and we dont don't expect the system to be functioning before the fall of 1975 1675 The ensuing impact on business should be very favorable for the new system will eliminate current uncertainties uncertainties uncertainties un un- certainties with respect to government spending and will make it it easier to fund federal programs and the huge federal debt In addition it should help to curb inflation and improve international economic relations |