Federal deficit nears record high
WASHINGTON
(AH) The feder
al budget dcflcll
ball o o n « d t o
$200.0 billion through August,
the government said Monday,
virtually ensuring a new fiscail
year record by the end of Sep
tember
"It fits with a yearly deficit of
between $200 billion and S2(i5
iiillion,” s.iid economist Marl
lyn St huja of Donaldson. Luf
kin A Jenretle Securities (k)rp
in New York If so, that would
top the previous record of
$2211 billion set in 1W86.
The Hush administration prt>
jccls the fiscal 1001 shortfall
will be S2H2 2 billion, rising to
SIMM I billion in the fiscal year
ending Sept to The Congres
sional budget Office contends
the deficit will total $279 0 hi I
lion this year and $102.0 till
lion next year
The Treasury Department
said the deficit rose $42.7 bil
lion in August, 10.1 percent
less than the shortfall in the
same month of 1000
For the year, however, the
imbalam e w as It 2 peri cut larg
er than the S2 11 2 billion short
fall in the first 1 I months of
last year
Although the gap between
spending and revenues after the
first 11 months of 10‘M) topped
the 1980 record, the deficit
dropped the next month to
( lose fist al 1990 with a $220 4
billion gap
About $25 billion of the Au
gust 10<)0 imbalance had re
flected a shift of payments nor
mally made in September, such
,is military pay and Social Se
curity chucks, to the previous
month to avoid Labor Day
weekend delays That amount
thus was not included in the
September expenditures
Government operations In
past Septemliers often resulted
m a surplus However, Schaja
said a slight pick up in spend
ing for the sa v i ngs-and - loan
bailout might produce "a little
bit of a deficit " this year.
Revenues so far this year to
taled Sui t >) billion, up 1 H per
cent from the same period of
1990. Hut spending jumped d. 1
percent, lo si.2 trillion, over
the first 11 months of last year
The Bush
administration
projects the fiscal
1991 deficit will be
$282.2 billion,
rising to $348.3
billion in the fiscal
year ending Sept.
30. If so, that
would top the
previous record of
$221.1 billion set in
1986.
For the month, revenues to
taled ,$7ti •! billion, up 5.7 per
cent from August loot)
Receipts included SI d bil
lion in contributions from al
lied nations to help pay for
Gulf Wnr expenses, down from
52 2 billion in July. So far this
year. contributions have totaled
542.4 billion
Ivxpendltures amounted to
$119.1 billion, 9 2 percent less
than the same month last year
Spending included St 2 bil
lion by the Resolution Trust
Corp. for the thrift bail out.
down from $9 2 billion in July
KTG spending during the first
11 months of the veur totaled
s:i() H billion, compared to
$37.8 billion during the same
period of last year
The August deficit was SI 9
billion more than the $40.H bil
lion gap that was posted in
July.
As usual, the biggest spend
ing i allegories were the military
and the Social Set urtty and
other programs of the Depart
ment of Health and Human Ser
vices, along with interest on the
national debt
Military spending totaled
$27 1 billion in August and
5240 '• billion so far this year It
is projected to total S2‘ 1 f> 7 bil
lion for the entire fiscal year
Social Security payments
amounted to 522 t> billion lot
the month and 5243 H billion
for the year They are projected
to total S2() I H billion for the
year
Other department payments,
including Medicare and Medi
caid. totaled 520 7 billion in
August and $200 7 billion for
fiscal 1901 so far They are pro
jected to total $222 4 billion
Interest on the national debt
amounted to $19.1 billion for
the month and $2t>8 3 billion
so lar this year It is projected
to total $2Ht> 3 billion lor the
entire year
Growers protest USDA
rules limiting size of fruit
WASHINGTON (AP) California growers unhappy with
federal marketing regulations distributed boxes of small and
illegal" nectarines on Monday to President Bush. Agricul
ture Secretary Fdwnrd Mndigan and congrossion.il officials
Although the nectarines taste as good as any at the grocery
store, the box they were delivered in warned that it contained
an "illegal substance." The disgruntled producers complain
that current marketing orders unfairly keep smaller fruit off
retail shelves at great cost to them and higher prices for con
sumers
"it's hard to believe, hut the fruit in this box cannot he sold
legally and must he destroyed because the USDA says it is
ton small.” the lalxd said "Obviously, it is small fruit. But
what right does the federal government have to tell farmers
what si/e fruit they (am sell?"
Monday's protest was organized by the Farmers Alliance
for Improved Regulation, which represents about one-third of
the peach and nectarine growers in California. II comes on
the eve of hearings in Visalia, Calif., on whether the peach
and nectarine marketing orders should t>e abolished or re
placed with a state program.
Jim Moody, an attorney for FAIR, said the California mar
keting orders were originally designed to ensure a stable mar
ket for California's fruit growers but have since lieen corrupt
ed by "the big boys."
He accused the Agriculture Department of looking the oth
er way as industry insiders develop rules on a fruit's siz.e and
maturity that ensures they capture the market and smaller
growers are squeezed out.
But Dan Haley, administrator of USDA's Agricultural Mar
keting Service, said he’s heard that "old. tired accusation" for
years "And every time we've looked into it we come up
empty "
Moody said regulations that govern the siz.e of fruit that
i an he shipped have forced many growers to produce a larger
crop Ix-eause they know that a share of their harvest may not
meet the marketing order criteria.
"And therein lies the tragedy,” Moody said " I here s noth
ing wrong with a fruit that's a little smaller, maybe a little
sweeter and u little Ixitter Some consumers actually jirefer a
smaller fru it"
FAIR also contends that smaller fruit is more affordable,
and that while USDA tells consumers to eat more fresh fruit,
its regulations require the destruction of thousands of tons ol
fruit
At issue are marketing orders just lor California nectarines
and peat lies
Haley suid he called for this week's hearings on the orders
after producers narrowly voted to keep the system in place.
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