Budget Surplus Reaches $115 Billion
By TERENCE HUNT
08:54 AM ET 09/27/99
WASHINGTON (AP) - The Clinton administration today increased its estimate of the
rapidly growing budget surplus, saying it should hit at least $115 billion in fiscal 1999,
the largest in American history. ``It is a landmark achievement for our economy,''
President Clinton said in a Rose Garden announcement, scribbling the new figure on a chart
for the cameras. ``And when you consider where we were just seven years ago, it's as great
an American comeback as the Ryder Cup was yesterday,'' he said, referring to the U.S.
team's come-from-behind victory in the golf team classic.
The larger-than-expected surplus likely will prompt new Republican calls for
major tax cuts for Americans. Clinton vetoed a $792 billion tax cut bill last week as
``too big, too bloated'' and urged passage of a cut in the range of $250 billion to $300
billion.
The president called anew on Republicans to work with the administration on
fixing Social Security, Medicare and other problems.
``We can do all that and still have an affordable tax cut for the middle class
and pay down our debt so that by 2015 we are debt-free for the first time since 1835, when
Andrew Jackson was president,'' Clinton said.
He said Congress should not ``throw in the towel'' and put matters aside.
``I'm not pessimistic,'' the president said. ``We've still got plenty of time.''
Republican leaders are struggling to adjourn Congress by Oct. 29. They suggested
Clinton's veto had killed chances for sweeping tax reductions this year.
Clinton said the higher surplus figure ``is further proof that we're on the
right road to prosperity. Our nation has come a long way in a short time. In 1992, the
budget deficit was $290 billion, projected to rise above $400 billion this year,'' Clinton
said. Earlier this year, the administration had estimated the surplus for fiscal 1999 -
which ends Thursday - at $99 billion, but the booming economy and larger than expected tax
revenues pushed the figure higher. The $115 billion figure would break the record $69
billion surplus last year.
Even after adjusting for inflation, it is still the largest surplus in American
history, the administration said. The 1999 surplus would be about 1.3 percent of the gross
domestic product, the largest on this basis since 1951.
The president said he was not dismayed by the prospect of political deadlock
with Republicans.
``Oh, I think if the past is any measure, one way or the other, the taxpayers
are going to be all right, because we can do pretty well by conflict, I suppose, and
eventually drag this out to where we have at least got a decent education budget, we're
still paying down the debt,'' he said.
