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

DATE: MONDAY, December 13, 1993                   TAG: 9312130080
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-3   EDITION: METRO 
SOURCE: Associated Press
DATELINE:                                 LENGTH: Short

THE BIGGEST SLICES OF THE FEDERAL PIE

A look at some of the biggest spending pressures President Clinton and Congress face as they prepare to work on the fiscal 1995 budget:

In a budget of about $1.5 trillion, the biggest, fastest-growing segment is entitlements. These are mostly benefits, such as Social Security, Medicare and assistance for farmers, students, veterans, the poor and others. By law, they are automatically paid to anyone who qualifies, with no need for congressional action.

The discretionary programs that Congress must approve every year make up another big chunk of the budget. These include defense, foreign aid and domestic programs not including benefits - everything from buying bombers to fixing potholes in national parks.

Even without further efforts to cut spending, these programs face a squeeze because Clinton's budget-cutting package slapped spending limits on them.

The remaining piece of the budget is the interest the government pays on the national debt to holders of Treasury bonds, bills and notes. This is an item no one would cut for fear of damaging the government's credit rating and causing panic throughout the economy.

by CNB