The chairman of the Senate Budget Committee said yesterday that Congress has failed to achieve the goals it set in its budget for fiscal 1977 (which started last October) and started the formal congressional process for passing a revised budget resolution for the current fiscal year.
In passing the final budget last September both the House and the Senate said explicity that the economic picture was cloudy and might require a revised budget to provide more economic stimulus.
Sen. Edmund S. Muskie (D-Me.) annnounced that the committee would conduct hearings next week as the first step to modifying the congressional budget resolution.
President-elect Jimmy Carter is expected to propose a tax cut-spending package to stimulate the economy, but Congress must modify its 1977 budget resolution before any new spending or taxing proposals can be considered by Congress.
The budget resolution passed last September set a goal of a 6 per cent growth rate in calendar 1977 and an unemployment rate down to 6.2 per cent by the end of the year. The unemployment rate was 8.1 per cent in November.
President Ford proposed $12.5 billion in tax cuts yesterday and will propose his fiscal 1978 budget later this month. President-elect Carter is expected to have his proposals for fiscal 1978 to Congress by mid-February.
Congress will cut on modifying the 1977 budget before it formally takes up the 1978 budget.