Statement of Administration Policy: S.J. Res. 186 - Suspending Certain Provisions of Law Pursuant to Section 258(a)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985

(SENT 9/13/91)
(Senate)
(Mitchell (D) ME)

If S.J. Res. 186 were presented to the President, his senior advisers would recommend that he veto it. Current economic conditions do not warrant suspension of the Federal budget discipline enacted at the close of the 101st Congress.

The real economic growth rates reported by the Department of Commerce are consistent with the pace of recovery projected in the economic forecast released in mid-July as part of the Mid-Session Review of the 1992 Budget. In addition, current economic indicators show many signs of an economic upturn, and a majority of private forecasters predict a two to three percent growth rate for the third quarter. In this context, relaxing fiscal discipline would be counter-productive.