a104  0850  13 Sep 77
PM-Budget, 2 Takes,330- 560
URGENT
By JIM LUTHER
Associated Press Writer
    WASHINGTON (AP) - Senate and House conferees agreed today on a
$458.3 billion budget for next year that will result in a deficit of
$61.3 billion.
    The budget is based on economic assumptions considerably less
optimistic than those of the Carter administration.
    The White House expects the economy to grow at a rate of 5.3 per
cent; Congress is forecasting a rate of 4.8 per cent. While the
administration expects the unemployment rate to drop from the current
7.1 per cent to 6.3 per cent by the end of 1978, the budget is based
on a rate no lower than 6.5 per cent.
    The budget approved by the conferees assumes no increase in Social
Security taxes before Oct. 1, 1978. The Senate delegation to the
conference committee convinced House members that such a tax increase
''could not be justified given the present state of the economy.''
    The conference agreed that ''a major problem exists in the financing
of Social Security.'' But, while shutting the door to any tax
increase, the conferees urged the House Ways and Means and Senate
Finance committees to approve ''legislation putting Social Security on
a sound financial footing for both the short term and the long
term.''
    Under the law, Congress is required by Sept. 15 each year to set a
limit on federal spending during the following 12 months, along with a
mininum level of revenue collections. Once those levels are in place,
it out of order for Congress to pass any bill that breaks the ceiling
or that cuts taxes below the minimum.
    As usual, the biggest single share of the budget, $146.1 billion, is
earmarked for such ''income security'' programs as Social Security
and welfare. Defense will get $110.1 billion. Spending for natural
resources, environment and energy will rise to $20 billion.
    The budget sets aside $41.7 billion to pay interest on the national
debt, which works out to $114.2 million a day.
    The budget-makers forecast revenue of $397 billion.
    Conferees spent less time setting limits on the 17 budget categories
than they did on arguing about how the economy will fare over the
next 12 months.
    More
    
1152aED 09-13
 - - - - - -

a228  1121  13 Sep 77
PM-Budget, Insert, a104, 100
WASHN: Insert
PM-Budget after 8th graf: the budget . . . a day.
    Here are other spending totals, in billions of dollars:
    International affairs, 6.6; science and space, 4.7; agriculture,
6.3; commerce and transportation, 19.6; community and regional
development, 10.6; education, job training and social services, 26.4;
health, 44.2; veterans benefits, 20.2; law enforcement, 4; general
government, 3.85; revenue sharing, 9.7; allowances, 1.
    On the other side of the ledger, the expenditure total is offset by
$16.8 billion for such receipts as revenue from leasing federal lands
for oil production.
    The budget-makers: 9th graf
    
1423pED 09-13
***************

a104  0850  13 Sep 77
PM-Budget, 2 Takes,330- 560
URGENT
By JIM LUTHER
Associated Press Writer
    WASHINGTON (AP) - Senate and House conferees agreed today on a
$458.3 billion budget for next year that will result in a deficit of
$61.3 billion.
    The budget is based on economic assumptions considerably less
optimistic than those of the Carter administration.
    The White House expects the economy to grow at a rate of 5.3 per
cent; Congress is forecasting a rate of 4.8 per cent. While the
administration expects the unemployment rate to drop from the current
7.1 per cent to 6.3 per cent by the end of 1978, the budget is based
on a rate no lower than 6.5 per cent.
    The budget approved by the conferees assumes no increase in Social
Security taxes before Oct. 1, 1978. The Senate delegation to the
conference committee convinced House members that such a tax increase
''could not be justified given the present state of the economy.''
    The conference agreed that ''a major problem exists in the financing
of Social Security.'' But, while shutting the door to any tax
increase, the conferees urged the House Ways and Means and Senate
Finance committees to approve ''legislation putting Social Security on
a sound financial footing for both the short term and the long
term.''
    Under the law, Congress is required by Sept. 15 each year to set a
limit on federal spending during the following 12 months, along with a
mininum level of revenue collections. Once those levels are in place,
it out of order for Congress to pass any bill that breaks the ceiling
or that cuts taxes below the minimum.
    As usual, the biggest single share of the budget, $146.1 billion, is
earmarked for such ''income security'' programs as Social Security
and welfare. Defense will get $110.1 billion. Spending for natural
resources, environment and energy will rise to $20 billion.
    The budget sets aside $41.7 billion to pay interest on the national
debt, which works out to $114.2 million a day.
    The budget-makers forecast revenue of $397 billion.
    Conferees spent less time setting limits on the 17 budget categories
than they did on arguing about how the economy will fare over the
next 12 months.
    More
    
1152aED 09-13
 - - - - - -

a228  1121  13 Sep 77
PM-Budget, Insert, a104, 100
WASHN: Insert
PM-Budget after 8th graf: the budget . . . a day.
    Here are other spending totals, in billions of dollars:
    International affairs, 6.6; science and space, 4.7; agriculture,
6.3; commerce and transportation, 19.6; community and regional
development, 10.6; education, job training and social services, 26.4;
health, 44.2; veterans benefits, 20.2; law enforcement, 4; general
government, 3.85; revenue sharing, 9.7; allowances, 1.
    On the other side of the ledger, the expenditure total is offset by
$16.8 billion for such receipts as revenue from leasing federal lands
for oil production.
    The budget-makers: 9th graf
    
1423pED 09-13
***************