The Federal Budget and the Economy

The typical problems involved in formulating a budget for the Federal Government are compounded this year by concern about persistent inflation in the face of rising unemployment and falling production. The Administration considers fiscal restraint essential in order to continue the fight against inflation and has proposed that the budget for the fiscal year end- ing next June be approximately balanced. Congress has acted on only a small portion of the proposed budget program, but many analysts believe that a substantial budget deficit will develop.