Charles E. Grassley: “the administration has recently released its fiscal year 1995 budget which shows a very rosy scenario regarding the…”

“the administration has recently released its fiscal year 1995 budget which shows a very rosy scenario regarding the deficit. Unfortunately, just like a rose, the bloom has faded quickly and the petals are falling on the administration's projections regarding deficit reduction. In the past few days since the release of the budget, several events have taken place that will substantially increase the deficit beyond the administration's projections. These include: CBO has estimated that the administration's health proposal will cost $73 billion over the next 5 years, not save $50 billion as the administration suggested. So that is a $123 billion increase in the deficit; There is a gap of over $20 billion between the administration's defense budget and the Pentagon's plans; GATT is projected to cost $11 billion over 5 years in lost tariff revenue; The emergency supplemental added nearly $8 billion to the deficit; Superfund restructuring is estimated to cost $3 billion. Interest rates on Treasury bills have increased markedly from the administration's estimates. The administration estimated 10-year T-bills to be at 5.8 percent for the next 5 years. The 10-year T-bill is already over 6 percent and climbing. On top of this we still have not gotten the bill for the Department of Labor's Workforce Security Act or welfare reform.”