DEFICIT-CUT PLAN OK'D BY PANEL

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, March 11, 1993                   TAG: 9303110187
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A1   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium
DEFICIT-CUT PLAN OK'D BY PANEL
A divided House Budget Committee approved the outlines of a record $510 billion, five-year deficit-reduction plan on Wednesday that bears the heavy imprint of President Clinton but cuts spending far more than he had asked.
"This budget . . . is primarily about getting our economic house in order and moving our nation forward," said House Budget Committee Chairman Martin Olav Sabo, D-Minn., as Democrats worked in high gear to speed the administration's economic package through Congress.
On a 26-17 party-line vote, Democrats pushed a $1.5 trillion budget for 1994 containing the deficit cuts through the House budget panel.
The actual tax increases and spending cuts outlined in the budget would be contained in future legislation. If enacted, the savings would exceed the nearly $500 billion in budget cuts that were contained in the 1990 budget agreement, the previous biggest package.
A vote on the measure by the full House was planned for next week.
Across the Capitol, the Senate's budget panel debated a similar Democratic-written proposal and planned to continue working today.
The spending plans before both budget committees would retain the essence of Clinton's month-old economic initiative: tax increases on the rich, defense cuts and more money for road-building and other projects.
Both Democratic-written measures would set guidelines for chopping more than $500 billion from the federal deficit over the next five years, adding tens of billions of dollars to the reductions Clinton proposed.
But while the House measure would find its extra savings exclusively by paring spending, the Senate would include $22 billion in higher levies than Clinton sought, and postpone until after 1998 about one-fifth of his plans to boost spending on high-tech and other projects.
Each package promised to leave the budget shortfall at $254 billion next year - more than $40 billion lower than would occur without action. Each would also shave projected 1998 gaps of nearly $400 billion closer to $200 billion.
"President Clinton has set the standard," said Senate Budget Committee Chairman James Sasser, D-Tenn. "He has done exactly what the American people have asked of him and they are willing to give the president a chance. Can we do less?"
Republicans were unimpressed. At both meetings, they complained that the Democratic measures were tax-heavy and vague.
"Mr. President, if you're watching, will you please give us your specifics," said the ranking Republican on the House budget panel, Rep. John Kasich of Ohio, his eyes fixed on television cameras. "Shame on you, Mr. President."
Minutes later, the panel voted 27-15, largely along party lines, to defeat a $429 billion, five-year deficit-cutting package Kasich had written. His plan avoided all of Clinton's $246 billion in tax increases and half of his $112 billion in defense cuts, but embraced slashes in Medicare and bureaucracy.

by Archana Subramaniam by CNB