Clinton Quick To Take Credit For Lowest Deficit Since 1981

President Clinton Monday announced the lowest federal deficit since 1981, saying his economic program is responsible for bringing down the federal government’s red ink. But Republicans credited their “common sense” policies in Congress.

The deficit, which was $107.3 billion at the end of fiscal year 1996, came in lower than even the Clinton administration’s own projections and was the fourth year in a row that the deficit has fallen. In 1992, the deficit was $290 billion.

With many polls showing the budget deficit a key concern among many voters - often a higher priority than tax cuts - the deficit news came at a good time for Clinton.

A lower deficit means less government debt, which takes pressure off interest rates and reduces consumers’ costs for financing homes, cars and credit-card purchases.