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PAD-82-22 1 (1981-10-21)

handle is hein.gao/gaobabcoh0001 and id is 1 raw text is: 
                                          7/qb4


BY THE COMPTROLLER GENERAL



Report To The Congress

OF THE UNITED STATES





The Congress Should Control

Federal Credit Programs To

Promote Economic Stabilization



F deral credit assistance programs have con-
tr buted little to U.S. economic stability since
1 P60. The current rate of direct and guaran-
te d loan flows will exceed $70 billion an-
ntoally in fiscal 1981. Recently, the Congress
ar d the Administration have proposed a cred-
it budget to limit the rapid growth of Federal
crdi t.
GAO demonstrates in this report that the best
pcint of program control is the amount of the
interest rate subsidy. Controlling subsidy levels
rather than program activity levels would al-
locate credit efficiently and would, at the
same time, lead to Federal credit flows that
would contribute to the economic stabiliza-
tion goals of the Federal Government.










            i.P
                                                            116682
             U

i*      m .                                                  PAD-82-22
   41C COU~I                                            OCTOBER 21, 1981

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