Summary: In a speech, the Comptroller General offered his perspectives on the current budget situation in the Federal Government. The Comptroller General stated that, while the budget deficit that has been developing for over 20 years is too large, it is unavoidable to some extent because of the recession. He stated that the prospect of large deficits during the 1980's poses an obstacle to the Nation's emerging from its recession, and high interest rates pose a threat to a sustained economic recovery. The Comptroller General reported that the deficit was due to inflation, a change in budget priorities, expanding social programs, and higher interest rates. In addition, he cited an erosion of the tax base. It was suggested that the deficit must be reduced through a combination of reductions in the growth of entitlement and defense programs, and an increase either in tax rates, the tax base, or both. He called for a bipartisan recognition of the deficit problem, a resolve to deal with it, and a consensus of agreement among public officials and private interests on an equitable allocation of sacrifice. The Comptroller General also called for an improvement in the Federal financial management systems which are outmoded and not well integrated. He also stated that there is a need to move to a broader concept of financial management in the Federal Government.
