Gregg Supports Additional Budget Cuts
WASHINGTON, Jan. 26 – Although President Bush will not submit his budget for the 2007 fiscal year until Feb. 6, Sen. Judd Gregg, R-N.H., has already expressed his intention to cut spending next year.
“In a very short period of time, our nation will face a financial crisis because the federal government has made commitments to America’s retirees that threaten to overwhelm our economy,” Gregg said in a statement Thursday.
“It is critical that we continue to hold the line on spending to put our fiscal house back in order,” he said, citing concerns that without stricter fiscal discipline, future generations would not “enjoy the same economic security and opportunities that we do.”
At a press conference on Wednesday, Gregg, who is chairman of the Budget Committee, said the nation cannot afford a government as expensive as it now stands.
“I’m not here to be a potted plant,” Gregg said at the press conference, according to CQ Today. “If we are going to do a budget, it’s going to be a serious budget.”
These remarks came before the Congressional Budget Office released its economic outlook Thursday.
According to the Budget Office’s analysis, in 2006 the federal budget will report a deficit of $337 billion, which does not include up to $25 billion that may be necessary for the war in Iraq and Hurricane Katrina relief.
The Budget Office’s report projects deficits for the next decade, mainly attributable to the costs of health care and Social Security. Although the office projected a balanced budget in 2012 before red ink returns, Gregg said that there are still cuts to be made.
The report comes as the House prepares to vote on the Deficit Reduction Act, which is projected to save $40 billion over the next five years by controlling the growth of mandatory spending. including changes in Medicaid and funds for student loans. The House passed an earlier version of the bill but must vote on it again because of changes in the Senate version.
Gregg was a major proponent of the act in the Senate and has expressed his belief that this bill is the right step in controlling budget problems. However, to continue the bill’s success, he said, it is important to address short-term deficits and to maintain “strict discipline over non-defense discretionary spending.”
Gregg will chair a hearing of the Budget Committee on Feb. 2 to consider the Budget Ofice report. Donald Marron, acting director of the Congressional Budget Office, will testify.
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